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The Factor Price Equalisation Theorem is an important concept in international trade theory developed under the Heckscher-Ohlin framework. It states that free trade in commodities leads to the equalisation of factor prices, such as wages for labor and returns on capital, across countries, even if factors of production themselves do not move internationally. The logic behind this theorem is that when countries _______ __________ ___ ________ ____ _______ _____ ___ _____.
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