Question

 

Factor Price Equalisation Theorem

12 Sep 2025
Answer :
Word Count : 252
The Factor Price Equalisation Theorem is a key concept in international trade theory, primarily associated with the Heckscher-Ohlin model. It suggests that free trade in goods between countries leads to the equalization of factor prices, such as wages for labor and returns on capital, across countries, even if the factors themselves do not move internationally. The theorem is based on the premise that ___ __________ ___ ___ _______ ____ __________ ________ _____ _______ _________ ______.
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