Suppose a labor-abundant country, exporting a labor-intensive good, experiences a significant increase in its capital stock. This change in endowments can:

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This scenario aligns with the Heckscher-Ohlin model, which predicts that countries will export goods that utilize their abundant factors of production more intensively. An increase in capital stock in a labor-abundant country could lead to a shift in comparative advantage, potentially reversing the country's trade pattern to favor the export of capital-intensive goods instead of labor-intensive goods.

Suppose a Labor-Abundant Country, Exporting a Labor-Intensive Good, Experiences a Significant