The factor-proportions theory of international trade implies that countries would tend to:
A) export products that intensively utilize their scarce factor of production.
B) import products that intensively utilize their abundant factor of production.
C) export products that intensively utilize their abundant factor of production.
D) import products that intensively utilize their unknown factor of production.
E) None of the above

Question

Quizplus · Accepted Answer

The factor-proportions theory, also known as the Heckscher-Ohlin theory, suggests that countries will export goods that make intensive use of their abundant factors of production and import goods that make intensive use of their scarce factors.

The Factor-Proportions Theory of International Trade Implies That Countries Would