The Heckscher-Ohlin theory emphasizes the interplay between the proportions in which the factors of production are available in different countries and the proportions in which they are needed for producing particular goods.

Question

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This is the basic premise of the Heckscher-Ohlin theory, which suggests that countries will export goods that utilize their abundant factors of production and import goods that use their scarce factors of production.

The Heckscher-Ohlin Theory Emphasizes the Interplay Between the Proportions in Which