Which theory predicts that countries will export those goods that make intensive use of factors that are locally abundant, while importing goods that make intensive use of factors that are locally scarce?
A) mercantilism
B) theory of absolute advantage
C) Heckscher-Ohlin theory
D) theory of comparative advantage
E) Samuelson's critique

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin theory posits that countries will export goods that utilize their abundant factors of production and import goods that require factors that are scarce locally.

Which Theory Predicts That Countries Will Export Those Goods That