Question

Can you use the Heckscher-Ohlin model to give a case for brexit  

Answer 1

The Brexit involved the UK breaking away from the European Union. This meant that EU economic policies would no longer be applicable to the UK. The Heckscher Ohlin model states that a country will always export that commodity that uses the nations most abundant resource intensively. Thus in case of Rolls Royce cars are used mainly with UK labour and labour is the most abundant resource in the UK then the UK will look to export Rolls Royce cars. The use of Brexit will mean that fewer cross border migrations will occur into the UK. This will mean that the UK labour pool will be clearly delineated and so it will allow the UK to clearly understand what the skills of the nation are and export those commodities accordingly. With excessive migration, the skills base in the UK will not be that clear and so as per the Heckscher Ohlin model what should be exported is not clear. With Brexit as migration lessens, the skills of the core UK labour pool will become obvious and so the exportable goods will become clear.