Factor Abundance
If H is endowed with relatively more L, H is "relatively L abundant". I.e. if KH/LH < KF/LF,
F is relatively K abundant and H is relatively L abundant.
Remember that absolute amount of resource endowment is not important.
Factor Intensity
If sector X requires relatively more L per unit production, X is "relatively L intensive". I.e.
if KX/LX < KY/LY, X is relatively L intensive and Y is relatively K intensive.
Remember that absolute amount of factor required is not important.
Throughout this section, we assume that H (F) is relatively L (K) abundant, and X (Y) is relatively
L (K) intensive.