Factor proportions theory states that a country will produce and export those goods that require resources abundantly available within the country.

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Factor proportions theory is a theory of international trade that states that countries will specialize in and export goods that require factors of production that they have in abundance, while importing goods that require other factors of production. This theory was first proposed by economists Wassily Leontief and Eli Heckscher.

Factor Proportions Theory States That a Country Will Produce and Export