Factor Proportions Theory, also known as the Heckscher-Ohlin Model, explains how countries export and import goods based on their factor endowments. It suggests that countries have different amounts of resources, like labor and capital, which influence the types of goods they produce. For example, a country rich in labor will likely export labor-intensive products, while a capital-rich country will export capital-intensive goods. This theory highlights the importance of resource availability in shaping international trade patterns. By understanding a country's factor endowments, we can predict its trade behavior and the types of products it will specialize in, leading to more efficient global trade.