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A capital-intensive country exports products that are capital intensive. which theory is this an example of International trade theory.
Heckscher-Ohlin theory, in economics, a theory of comparative advantage in international trade according to which countries in which capital is relatively plentiful and labor relatively scarce will tend to export capital-intensive products and import labor-intensive products.
while countries in which labor is relatively plentiful and capital relatively scarce will tend to export labor-intensive products and import capital-intensive products.
The theory was developed by the Swedish economist Bertil Ohlin (1899–1979) . For his work on the theory, Ohlin was awarded the Nobel Prize for Economics .
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