_____ predicts that countries will export those goods that make intensive use of factors that are locally abundant,while importing goods that make intensive use of factors that are locally scarce.

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The theory of factor endowments, also known as the Heckscher-Ohlin theory, predicts that countries will export goods that make intensive use of factors that are locally abundant, while importing goods that make intensive use of factors that are locally scarce. This is because goods that require more of the abundant factor will be less expensive to produce in that country, while goods that require more of the scarce factor will be more expensive to produce. Therefore, countries will specialize in producing goods that are relatively cheaper for them to produce and trade with other countries for goods that are relatively more expensive for them to produce.

_____ Predicts That Countries Will Export Those Goods That Make