Theoretical AnalysisIn the 1930s, Eli Heckscher and Bertil Ohlin developed the theory of factorial proportions, also known as the Heckscher-Ohlin model. According to this theory, countries will produce and export products that use large quantities of production factors that they have in abundance, and they will import products that require large quantities of production factors that they lack (Rugman and Collins, 2009). The original HO model is also called the 2*2*2 model. Because he assumed that the only difference between countries was the relative abundance of labor and capital. The original HO model contained two countries and two products that could be produced. For example, China has a large amount of labor while America has a large amount of capital. According to HO theory, China will focus on producing labor-intensive goods and export to America. In contrast, America has relatively more capital than labor and will specialize in capital-intensive goods. There are many hypotheses about the theory. Both countries in the model have identical production technology. It assumes that resource availability rates are the same in different countries. Additionally, this assumes that production must have a constant return to scale (CRS). In reality, the assumptions of the HO model cannot be satisfied. In 1954, an econometric test of the HO model by Wassily W. Leontief found that the United States, despite a relative abundance of capital, tended to export labor-intensive goods and import labor-intensive goods capital intensive (wiki, 2012). This result is known as Leontief's paradox and has been explained in terms of quality of work rather than simply hours of work. The above two theories explained the relationships between importation and the medium of paper. ....country if the goods cannot meet the standards they set. In addition to this, other considerations may be taken into account. Employment, exchange rate, tariffs, quotas and other non-tariff barriers can impact comparability in one place. Tariffs are taxes on goods shipped internationally. The government can set high tariffs to protect dominant industry and employment. In recent years, solar energy has become a booming industry. Both America and China want to export solar power equipment. To protect the local industry, America has set high import tariffs and even restricted relative imports of solar energy products. At the same time, taking advantage of exchange rate advantages and export duty refunds, China also encourages local solar energy. These barriers have a considerable impact on import and export actions. Not only did the availability of resources influence competitiveness in one place.