The author uses the perspectives of Eli Heckscher and Bertil Ohlin to explain how factor proportions theory works. The author states that business and production forecasts based on a trade area are based on David Ricardo's theory of comparative advantage by predicting trade and production patterns based on the factor endowments of a trade region. The model essentially means that a country will export products with large, cheaper production costs and import products that use the country's scarce factor. According to the "Theory of Factor Proportions", HubPages states that the basic elements of Smith and Ricardo, emphasizing the value of the proportion of factor proportions of the theory based on the production of a more modern concept, have risen to the same level of importance as capital labor . There are some new concepts from HubPages that are easier to understand, it uses the two factors of production to state that different products need different proportions of the two factors of production, it shows readers how the proportions of the factors of how the product is produced between scaling factors refer to a significantly different product