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
Factors of production
Factory gate price
Factory Orders
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