The factor proportions theory holds that countries should improve their competitiveness by importing capital and skilled employees from abroad.

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The factor proportions theory, also known as the Heckscher-Ohlin theory, suggests that countries will export goods that utilize their abundant factors of production and import goods that require factors of production that are scarce domestically. It does not specifically advocate for importing capital and skilled employees to improve competitiveness.

The Factor Proportions Theory Holds That Countries Should Improve Their