The Heckscher-Ohlin theory contends that over a period of years, a country that initially is an exporter of a product will become an importer of that product.

Question

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The Heckscher-Ohlin theory actually states that countries export goods that use their abundant factors of production intensively and import goods that use their scarce factors of production intensively. It does not specifically predict that a country will switch from being an exporter to an importer of the same product over time.

The Heckscher-Ohlin Theory Contends That Over a Period of Years