Which theory postulates that countries will export those goods that make intensive use of factors that are locally abundant, while import goods that make use of factors that are locally scarce ?
Heckscher-Ohlin Theory
The Heckscher-Ohlin theory explains trade by differences in factor endowments: a country exports goods that use its abundant factor intensively and imports goods that need its scarce factor.
The Product Life Cycle Theory deals with stages of a product's life, and the two cost advantage theories rest on labour productivity differences, not on factor abundance.
Hence, the answer is the Heckscher-Ohlin Theory.
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