Question

Why is the specific-factors model referred to as a “short-run” version of the Heckscher-Ohlin model?

Answer 1

Answer : In specific factor model it is assumed that there is a single economy which produced two goods and there are different factors such as land,labour and capital. In this model, we assumed that land and capital are specified factor which help in the production of a single good and they are fixed for a single production of goods where as in heckscher ohlin model there is production of goods but all the factor of production are changing overtime. That is the reason which shows the specific factor model is short version of heckscher-ohlin model. As the factor of production are fixed and after some time changes at drastic speed.