The Heckscher-Ohlin theory suggests that land-abundant nations will export land-intensive goods while labor-abundant nations will export labor-intensive goods.

Question

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The statement correctly describes the Heckscher-Ohlin theory, which suggests that comparative advantage arises from differences in factor endowments (such as land and labor), leading countries to export the goods that use their abundant factors intensively and import the goods that use their scarce factors intensively.

The Heckscher-Ohlin Theory Suggests That Land-Abundant Nations Will Export Land-Intensive