The Heckscher-Ohlin theory explains comparative advantage enjoyed by countries in the production of certain goods in terms of underlying differences in consumer tastes and preferences.

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The Heckscher-Ohlin theory explains comparative advantage enjoyed by countries in the production of certain goods in terms of differences in relative factor endowments. It assumes that countries differ in their factor endowments, such as labor or capital, and that these differences explain why countries produce and export certain goods over others. Preferences of consumers are not considered in this theory.

The Heckscher-Ohlin Theory Explains Comparative Advantage Enjoyed by Countries in the Production