Sample Criminal Justice Essay Paper on International trade

International trade

I selected to be the king of a country with more capitals for my case study. I chose this country because I believed that with more capitals, I would be able to make my country prosperous. On the other hand, I selected my trade partner to be the country with more labor and little capital. In relation to Heckscher-Ohlin trade theory, I selected my trade partner to be the country with more labor than my country because I could benefit from the labor force in that country (Ghai and Gupta 278). At the same time, my trade partner could find it worthwhile to do business with my country because it will benefit from the capital in my country. This means that each country could benefit from each other unlike selecting a country with more capital as my country.

Because of doing this, I was able to increase the welfare of my country even if I did not maximize the opportunities that were available to me. This notwithstanding, the performance of my country improved as the performance for my trade partner improved as well. The simple reason for improved performance for my country as well as improved performance for my trade partner was the fact that each of us benefited from the trade. My country benefited from excess labor force from the other country while the other country benefited from excess capital in my country. Accordingly, as Heckscher-Ohlin trade theory indicates countries can benefit from international trade if they can specialize in their areas of strength (Ghai and Gupta 278). Nevertheless, this does not always work as expected because of the realities of life.

Work Cited

Ghai, Pankaj, and Gupta Anaj. Microeconomics theory and application. New Delhi: Sarup & Sons, 2002. Print.