... capital.Second, the factor proportions model says that international trade affects the income distrib-ution via a change in relative goods prices. So if international trade was the main driving forcebehind ... their labor is espe-cially productive. Most international economists, however, regard the Ricardian model astoo limited to serve as their basic model of international trade. By contrast, the Heckscher-Ohlin ... of international trade than one might hope, it remains vital for understanding theeffects of trade, especially its effects on the distribution of income. Indeed, the growth of86 PART I International...