The Heckscher-Ohlin theory argues that the pattern of international trade is determined by differences in factor endowments.

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The Heckscher-Ohlin theory states that countries with abundant factors of production, such as labor or capital, should specialize in producing goods that require the abundant factor and trade with countries that have scarce factors of production. This theory asserts that the pattern of international trade is determined by differences in factor endowments.

The Heckscher-Ohlin Theory Argues That the Pattern of International Trade