Factor endowment - Definition

Factor endowment is commonly understood as the Amount of land, Labor, Capital, and entrepreneurship that a country possesses and can exploit for manufacturing. Simply put, countries with plentiful natural resources will generally have a comparative advantage in products using those resources. IT was based on the theory introduced by Heckscher-Ohlin, who focuses on the two most important Factors of production, labour and capital.



Terms near "Factor endowment"

Factor income
Factor market
Factor model
Factor portfolio
Factor return
Factor's lien
Factoring
Factors of production
Factory gate price
Factory Orders
Ready to Trade!
First you'll need an online broker. See how much you can save by visiting Forexbite Broker Center.
Advertisement

Factor endowment - Related articles & news

Featured
Top 5 factors that affect exchange rates ...

There are many factors that affect exchange rates of currencies. However some are more important in currency trading than others. These are; Interest and Inflation rates, Trade balance, Currency market speculation, Foreign investment and Central bank market intervention. Learn how to use these factors in your forex tra ...

Forex Navigation