July 1986 (Revised August 1987)
Background Note
HBS Case Collection

Note on Comparative Advantage

By: David B. Yoffie and John J. Coleman

Format:Print
| Pages:6

Abstract

Discusses David Ricardo's theory of comparative advantage and the refinement of his model developed by Eli Heckscher and Bertil Ohlin. Presents several criticisms of the Heckscher-Ohlin theory, including Wassily Leontief's empirical demonstration that the nature of U.S. imports and exports were exactly contrary to the predictions of the theory.

Keywords

Business Model; Forecasting and Prediction; Macroeconomics; Trade; Theory

Citation

Yoffie, David B., and John J. Coleman. "Note on Comparative Advantage." Harvard Business School Background Note 387-023, July 1986. (Revised August 1987.)