Do not reuse without permission. In 1990, management strategy professor Michael Porter launched a second attack on Factor Proportion Theory. Abundance of factors may actually undermine competitive advantage.
Abundance generates waste.
Scarcity generates innovative mindset. Nevertheless, forest-products are a huge export for BC, and give us a clear example of the benefits of factor abudance. Absence of a basic factor that would be advantageous to have in abundance if there were no dynamic effects. An SFD can stimulate innovation which more than compensates for the original disadvantage. SFDs are best when they send an accurate signal about circumstances that will ultimately prevail elsewhere.