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Economists refer to the natural resources of an area as its factor endowment.
A country's factor endowment consists of its land area, its minerals and natural resources, natural transportation networks such as rivers, and. its labor.
countries and different regions within countries have been blessed with different factor endowments.
The differences in factor endowments make some regions better suited to the production of certain goods: a region with
The theory of comparative advantage was developed by economists to prove that in cases where factor endowments or capital stocks vary, two countries or regions can both gain by specializing in the production of goods and services that more intensively use the resources they have in relative abundance.
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