The Heckscher-Ohlin model provides a framework for understanding international trade based on comparative advantage derived from factor endowments, suggesting that countries export goods that utilize their abundant resources and import those that require scarce resources. An advantage of this model is its ability to explain trade patterns based on factor proportions rather than just technology differences. However, its disadvantages include oversimplification, as it assumes factors of production are mobile within countries but not between them, and it may not account for the influence of technology, economies of scale, or transportation costs on trade. Additionally, empirical evidence often shows deviations from the model's predictions, limiting its applicability in real-world scenariOS.
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