Final answer:
The Heckscher-Ohlin theory explains that nations will produce and export goods intensively using their abundance of certain factors of production, while the International Product Life Cycle Theory and New Trade Theory provide alternative explanations for trade patterns.
Step-by-step explanation:
The attempts to explain that nations will produce and export goods that use the highest proportion of those factors of production that are most abundant to a nation is best described by the Heckscher-Ohlin theory (also known as the Factor Proportions theory). This theory posits that countries will specialize and export goods that make intensive use of their abundant factors of production. For instance, a nation abundant in capital will export capital-intensive goods.
In contrast, the International Product Life Cycle Theory suggests that a product's production and export location changes through its lifecycle, beginning in the inventor country and eventually moving to other countries as the product matures and becomes standardized. The New Trade Theory posits that through economies of scale and market network effects, countries may specialize in the production and export of certain goods, irrespective of factors of production.
The theory of comparative advantage supports the Heckscher-Ohlin model by suggesting that nations should specialize in producing goods for which they have the lowest opportunity cost, leading to gains from trade. This principle holds even in cases of intra-industry trade, where a country like the USA may import and export the same category of goods, such as automobiles, due to specialization within that industry.