Answer
May 12, 2025 - 08:17 AM
The Heckscher-Ohlin theory suggests that countries will export goods that utilize their abundant and cheap factors of production, while importing goods that require factors in which they are relatively scarce. This theory emphasizes the role of a country's factor endowments, such as labor, land, and capital, in determining its comparative advantage in international trade. Essentially, it predicts that the patterns of trade are determined by differences in resource availability between countries.
