According to the HO model,countries with different factor endowments but similar technologies and preferences will have a strong basis for trade with each other.

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The HO model suggests that countries with different factor endowments but similar technologies and preferences will have a strong basis for trade with each other. This is because these countries can specialize in producing goods that make use of their abundant factors of production, and trade with each other to access goods that are produced more efficiently by their trading partners. As a result, both countries can benefit from trade and increase their economic welfare.

According to the HO Model,countries with Different Factor Endowments but Similar