Question

Suppose the Heckscher-Ohlin model is used to explain Egypt’s international trade. Why was Egypt an exporter of grain in ancient times? Suggest a reason for why Egypt has changed from exporting grain in ancient times to importing grain today.

Answer 1

Heckscher-Ohlin model shows that a country should export the production materials of which they have an excess.They should export what they can produce efficiently. In ancient times, Egypt was rich in many natural resources. Egypt had grain in plenty . It was known as the Rome's breadbasket. Therefore, it was an exporter of grain in ancient times.Today, Egypt has changed from exporting grain in ancient times to importing grain .To conserve its Nile river, Egypt reduced its rice cultivation as it is a water-intensive crop. It started importing rice by the year 2017