Education
In 1930 Ohlin succeeded Eli Heckscher , his teacher, as a Professor of Economics , at the Stockholm School of Economics.
In 1930 Ohlin succeeded Eli Heckscher , his teacher, as a Professor of Economics , at the Stockholm School of Economics.
In 1929 he debated with John Maynard Keynes , contradicting the latter's view on the Consequences of the Heavy War reparations Payments Imposed on Germany. (Keynes predicted caused a War by the burden of debt , Ohlin thought that Germany could afford the reparations.)
Mathematical model «Heckscher-Ohlin model» of international free trade,which Ohlin developed together with Eli Heckscher.
The Heckscher–Ohlin Theorem, which is concluded from the Heckscher–Ohlin model of international trade, states: trade between countries is in proportion to their relative amounts of capital and labor. In countries with an abundance of capital, wage rates tend to be high; therefore, labor-intensive products(textiles, simple electronics) are more costly to produce internally. In contrast, capital-intensive products (automobiles, chemicals) are less costly to produce internally. Countries with large amounts of capital will export capital-intensive products and import labor-intensive products with the proceeds. Countries with high amounts of labor will do the reverse.
