The Hecksher-Ohlin neoclassical factor endowment trade theory is based on two crucial propositions

a.The concept of relative cost & price differences

b.Different products require productive factors in different proportions & countries have different endowments of factor of production

c.Trade is an important stimulator of economic growth & tends to promote greater equality (international & domestic) by equalizing factor prices

d.The technology of production is fixed & freely available to all nations