The Trade Ruler Game
The Trade Ruler Game explores Nobel prize winner Bertil Ohlin's theory of international trade and economic growth, called the Heckscher-Ohlin model, which is based on David Ricardo's theory of comparative advantage. In the game, the production of goods and services requires capital and workers. Some goods are capital intensive and others are labor intensive.
The Heckscher-Ohlin theory explains why countries trade goods and services with each other. If one country, for example, has lots of capital (such as machinery) but few workers, while another country has a lot of workers but little capital then, according to the Heckscher-Ohlin theory, trade between these two countries will produce economic gain for both. Specialization in production and trade between countries generates, according to this theory, a higher standard-of-living for the countries involved.
The Trade Ruler Game was produced by the Educational Outreach Program at Nobelprize.org.
Posted by Michael Bean
