True because According to Heckscher and Ohlin, each country has certain resources, such as land, labor, and capital, that are used in the production of goods and services.
These resources are known as a country’s endowments. This theory suggests that a country has a comparative advantage in producing goods and services that require a relatively larger amount of a particular resource.
For example, if a country has a large amount of land, it can have a comparative advantage in producing goods that require a lot of land (e.g. agricultural goods).
Similarly, if a country has a large amount of labor, it can have a comparative advantage in producing goods that require a lot of labor (e.g. manufactured goods).
The concept of endowments and comparative advantage helps explain why certain countries specialize in certain types of production.
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