Learning Exercise

Play an International Trade game simulation http://nobelprize.org/educational_games/economics/trade/ This game simulation walks a student through the theories surrounding the Nobel award winning theories involved with international trade. Bertil Ohlin, awarded the Prize in Economics in 1977, showed that countries engage in and benefit from trade if their production resources differ from each other. The Heckscher-Ohlin theory explains why countries trade goods and services with each other. One condition for trade between two countries is that the countries differ with respect to the availability of the factors of production.