According to the theory of factor endowment, the various regions of the world are equally well endowed with regard to production factors.

Question

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The theory of factor endowment suggests that different regions of the world have different factor endowments, meaning they have different levels of access to factors of production such as land, capital, and labor. This influences what goods and services are produced in each region and how they are traded.

According to the Theory of Factor Endowment, the Various Regions