Question

What term does Heckscher-Ohlin use to refer to the extent to which a country is enriched with resources such as land, labor, and capital

Answer 1

Factor endowments

Step-by-step explanation:

According to the Heckscher-Ohlin model, factor endowments refer to the factors of production (land, labor, capital) that are abundant in a country and allow its citizens to have a comparative advantage over other countries regarding the production of goods and services, and trade.

Different countries have different factor endowments, e.g. Japan has abundant capital and labor, but few land, therefore, it produces and trades manufactured goods. Brazil has abundant land and labor, therefore, it produces and trade agricultural products.