Question

 

Factor Price Equalisation Theorem

24 Oct 2025
Answer :
Word Count : 232
The Factor Price Equalisation Theorem, developed by economists Paul Samuelson and Wolfgang Stolper, is an extension of the Heckscher–Ohlin theory of international trade. It states that free trade in goods between nations can lead to the equalisation of the prices of factors of production, such as labour and capital, across countries. According to this theory, when countries engage ________ __________ _______ ___ __________ _______ _____ _________ ___ ___ ________.
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