In the Heckscher-Ohlin world, international trade in commodities will lead to equalization of relative and absolute factor prices provided there is
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2 marks, −1International EconomicsTheories of international tradeFactor price equalisation and the Stolper-Samuelson theoremModerateabout 1 min
JNU SIS 2016 Question 37: Theories of international trade
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Theories of international trade has come up 151 times in 6 exams since 2006.
What this question tests
This question is on Factor price equalisation and the Stolper-Samuelson theorem, part of Theories of international trade in International Economics.
How trade changes returns to factors and whether it equalises them across countries.
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