It seems self evident that countries would have an advantage in producing those goods that use relatively large amounts of their most abundant factor of production.

Question

Quizplus · Accepted Answer

This statement is based on the concept of the Factor Proportions Theory, which states that countries will naturally specialize in producing goods that use their abundant factors of production, as it is more efficient and cost-effective to do so. This theory has been supported by empirical evidence and is widely accepted in international trade theory.

It Seems Self Evident That Countries Would Have an Advantage