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Linder theory

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Illustrate how the Linder theory of trade works. Explain similarities and/or differences between the Linder model and Heckscher-Ohlin model.

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Illustrate how the Linder theory of trade works. Explain similarities and/or differences between the Linder model and Heckscher-Ohlin model.
The Linder theory of trade concentrates on demand instead of supply to identify trade patterns. The theory holds that trade between countries occurs in goods for which there is overlapping demand or the consumers in both countries demand similar products. The Linder theory of trade works because it ...

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