To what extent does the Heckscher-Ohlin theory explain the rise of the Indian software industry?

Answer 1

Considering that Indians are considered as highly technical, it is presumed that India uses the Heckscher -Ohlin theory in its international operations. This is because the government in India, focus on:

1. Having highly educated engineers: This is required to reach high quality of software and become more competitive and the leader in the market. However engineers, have the best institutions in India to choose from in order to educate them in becoming the best software engineering.

2. English is the working language: With regards to the language it is important because it gives opportunities to Indian engineers to contacts with western firms easily without any difficulties in language.

3. Indian graphical position: This is an opportunity for India due to different time zones between India and western countries. Meaning that, the Indian engineers could maintain the software overnight while the system is not used by western country. In addition this is encouraging India to spread the software industry to the western countries.

4. Low cost of high skill labors: Also the low cost of high skills labors in India is attracting countries to trade with India. (Cahyono,SA., (2003))