The factor-proportions theory states that a country will have a comparative advantage in the good whose production is relatively intensive in the factor in which the country is relatively abundant.

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The factor-proportions theory, also known as the Heckscher-Ohlin theory, posits that a country will export goods that require resources (factors of production) that are abundant in the country and import goods that require resources that are scarce. This means a country has a comparative advantage in producing goods that intensively use its abundant factors of production.

The Factor-Proportions Theory States That a Country Will Have a Comparative