Answer to Question #141836 in Management for faisal

Question

What trade theories support the recent rise of China and India on the global stage? Explain your views in detail

Answer 1

The trade theories that support the recent rise of India and China are the H-O or Heckscher-Ohlin theory that adopts input-output techniques for capital-labor ratio of import and export competitive goods. The other theory employed by the two countries is the theory of comparative advantage where they generate adjustment pressure on their endowment factor range.