ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Factor endowment can be defined as the quantity and quality of the factors of production-land, labor, capital and natural resources-that a nation possesses.

Detailed explanation-2: -Factor endowments are the land, labor, capital, and resources that a country has access to, which will give it an economic comparative advantage over other countries.

Detailed explanation-3: -A factor endowment, in economics, is commonly understood to be the amount of land, labor, capital, and entrepreneurship that a country possesses and can exploit for manufacturing. Countries with a large endowment of resources tend to be more prosperous than those with a small endowment if all other things are equal.

Detailed explanation-4: -Factor endowments refer to the extent to which a country is gifted with such resources as land, labor, and capital.

Detailed explanation-5: -The H-O theory is also known as the factor-proportions theory or factor-endowment theory. A principal result of the H-O theory is the Heckscher-Ohlin Theorem which states the following. A nation will export the product that uses its most abundant factor intensively.