In general, a labor-abundant country (such as China) tends to specialize in labor-intensive industry and export labor-intensive products, and imports capital-intensive products.This statement is an illustration of the ____________________________ of comparative advantage.

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This statement illustrates the factor endowment theory, also known as the Heckscher-Ohlin theory, which posits that countries will export goods that make intensive use of the factors of production (such as labor or capital) in which they are relatively abundant.

In General, a Labor-Abundant Country (Such as China) Tends to Specialize