DEFINITION of 'Bertil Ohlin'
A Swedish economist who received the 1977 Nobel Memorial Prize in Economics, along with James Meade, for his research on international trade and international capital movements. Ohlin was born in 1899 in Sweden and died in 1979. He held a Ph.D. from Stockholm University and taught at the University of Copenhagen and the Stockholm School of Economics.
BREAKING DOWN 'Bertil Ohlin'
Ohlin developed a highly influential theory of international trade, the Hecksher-Ohlin model, along with his instructor, Eli Hecksher. The model, which ties in with David Ricardo's theory of comparative advantage, says that countries will export those goods that they can produce cheaply and import those goods that are expensive to produce. A country's relative advantages or disadvantages in land, labor and capital will determine what it makes most sense for the country to import and export. The Hecksher-Ohlin theory states that countries will specialize in industries where they can utilize their resources with the most efficiency.