International trade would tend to increase the percentage of national income going to the abundant factor of production.

Question

Quizplus · Accepted Answer

According to the Heckscher-Ohlin theorem, international trade benefits the abundant factor of production in a country, leading to an increase in its share of national income. This is because countries tend to export goods that use their abundant factors intensively, increasing the demand for these factors and thus their returns.

International Trade Would Tend to Increase the Percentage of National