. In order to govern the pattern of trade the relative factor endowment has a key role ((Jones, 2006).
Heckscher-Ohlin Model 赫克歇尔-俄林模型
Heckscher Ohlin theory is some what different from absolute advantage and comparative advantage theory since it emphasizes only on the production factors in which the company has expertise and from that produce the goods. This theory stated that a country should export only those goods which are abundance in the country and for which the means of production factors can be utilized more intensively. In contrast the country should import only those goods in which the country is less capable for its means of production factors and also not available in abundance (Nelson and Winter, 2007). Therefore it has been observed that the factor of endowment and relative variation has key role in the pattern of international trade. As against this statement, Wasily Leotieff tested this theory empirically in which he found that the Hecksher Ohlin theory may not always be true. In support of this statement he stated that the export in US is for the commodities which are labor intensive however the country has abundance capital and this example is famous by the name as Leontief Paradox ((Jones, 2008).
Specific Factors Model 特异性因子模型
The specific model theory stated that for producing the goods and exports them to other country, the capital should be fixed for the short run and labor should be mobile. It would help to minimize the cost of production i.e. in case the price of a commodity increase then the producer an get the benefit by using the labor which is available at low cost. This model is suitable only for some specific industries (Easterly, 2008).
Gravity Model 引力模式
As per the gravity model theory, the pattern of trade between the countries is affected by the distance between the countries and these findings are also supported by the economics (Hennart, 2007).
International Equities:国际股市
International equities are the assets of the country in which the country transact with the other country. In the international equity a country has greater or lesser value transaction over the other country. There are few theories comes under international equity which provides the better idea to understand the international equity. These theories are provided in the following section (Hennart, 2007).
Balance of Trade: 贸易平衡
Whenever, a country export to other country or import from other country, then the difference between the export and import is known as balance of trade. If the export of goods is greater than the import of goods then the different between the export and import is positive and said that the country has positive balance of trade. On the other hand if the export is less than the import then the balance of trade will be negative and this situation is called trade deficit (Casson, 2008).
Balance of Payment:收支平衡
Balance of payment is the record of all the transaction which h
