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Factor price equalization

Factor price equalization is an economic theory, by Paul A. Samuelson (1948), which states that the prices of identical factors of production, such as the wage rate or the rent of capital, will be equalized across countries as a result of international trade in commodities. The theorem assumes that there are two goods and two factors of production, for…

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Factor price equalization

Nodes13
Edges12
Triples3
Avg. degree1.85
Density0.153846
Components1

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Factor price equalization

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related to Application · 2
Factor price equalization → He, Joseph Stiglitz
is a · 1
Factor price equalization → economic theory

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Important terminology

capital trade factor countries prices factors labor productivity price free theory production equalized goods marginal also result theorem two assumptions

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SubjectPredicateObjectConfidenceSrc
Factor price equalizationis aeconomic theory0.90text
Factor price equalizationrelated to ApplicationJoseph Stiglitz0.60section
Factor price equalizationrelated to ApplicationHe0.60section

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