The model suggesting that countries will specialize in producing the good that uses its relatively abundant factor of production most intensively is referred to as the _____ model.

Question

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The Heckscher-Ohlin model suggests that countries will specialize in producing the good that uses its relatively abundant factor of production most intensively. This model is based on the idea that countries have different endowments of factors of production (e.g. labor, capital) and will specialize in producing the goods that use their abundant factors most efficiently, while importing goods that use their scarce factors more intensively.

The Model Suggesting That Countries Will Specialize in Producing the Good