The Heckscher-Ohlin theory proposed that nations will develop comparative advantage based on their locally abundant factors.

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The Heckscher-Ohlin theory, also known as the factor proportions theory, suggests that countries will develop comparative advantage based on their locally abundant factors of production, such as natural resources or skilled labor. This theory is based on the idea that countries will specialize in producing goods that use their abundant factors more intensively, allowing them to gain a comparative advantage in those goods.

The Heckscher-Ohlin Theory Proposed That Nations Will Develop Comparative Advantage