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The Factor Price Equalisation Theorem is a central concept in international trade theory derived from the Heckscher-Ohlin model. It explains how free trade in goods can lead to the equalisation of factor prices such as wages and returns on capital between countries, even if factors of production themselves do not move across borders. According to this theorem, when nations trade freely, __________ _____ _____ __________ ____ ____ _________ ______ __________ _______.
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