Introduction Previous trade theories have emphasized specific sources of comparative advantage which give rise to international trade Differences in labor productivity (Ricardian model) Differences in resources(specific factors model and Heckscher-Ohlin model) Copyright C 2003 Pearson Education, Inc Slide 5-3Copyright © 2003 Pearson Education, Inc. Slide 5-3 Introduction ▪ Previous trade theories have emphasized specific sources of comparative advantage which give rise to international trade: • Differences in labor productivity (Ricardian model) • Differences in resources (specific factors model and Heckscher-Ohlin model)