The United States has an abundance of arable land,but faces a shortage of low-cost labor.In contrast,China excels in the production of labor-intensive goods,such as footwear and textiles.According to the Heckscher-Ohlin theory:

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Heckscher and Ohlin argued that comparative advantage arises from differences in national factor endowments.Their theory 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.

The United States Has an Abundance of Arable Land,but Faces