The Shipbreakers of Alang utilize much labor and little capital, thereby supporting the applicability of the

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The factor proportions explanation of the sources of comparative advantage suggests that countries will export goods that make intensive use of the factors of production that they have in abundance. In the case of the Shipbreakers of Alang, their operation relies heavily on labor (a factor of production they have in abundance) and less on capital, supporting the applicability of this theory.

The Shipbreakers of Alang Utilize Much Labor and Little Capital