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Factor Price Equalization: Unlocking the Global Trade Enigma, Mastering Factor Price Equalization
Factor Price Equalization: Unlocking the Global Trade Enigma, Mastering Factor Price Equalization
Factor Price Equalization: Unlocking the Global Trade Enigma, Mastering Factor Price Equalization
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Factor Price Equalization: Unlocking the Global Trade Enigma, Mastering Factor Price Equalization

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What is 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 example capital and labour. Other key assumptions of the theorem are that each country faces the same commodity prices, because of free trade in commodities, uses the same technology for production, and produces both goods. Crucially these assumptions result in factor prices being equalized across countries without the need for factor mobility, such as migration of labor or capital flows.


How you will benefit


(I) Insights, and validations about the following topics:


Chapter 1: Factor price equalization


Chapter 2: David Ricardo


Chapter 3: Comparative advantage


Chapter 4: Federal Reserve


Chapter 5: Transformation problem


Chapter 6: Cost-of-production theory of value


Chapter 7: Production-possibility frontier


Chapter 8: Stolper-Samuelson theorem


Chapter 9: Balassa-Samuelson effect


Chapter 10: Rybczynski theorem


Chapter 11: Heckscher-Ohlin model


Chapter 12: International economics


Chapter 13: Heckscher-Ohlin theorem


Chapter 14: Lange model


Chapter 15: International factor movements


Chapter 16: Luigi Pasinetti


Chapter 17: Factor market


Chapter 18: International trade theory


Chapter 19: Cambridge capital controversy


Chapter 20: Exploitation of labour


Chapter 21: Financial instrument


(II) Answering the public top questions about factor price equalization.


(III) Real world examples for the usage of factor price equalization in many fields.


Who this book is for


Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Factor Price Equalization.

LanguageEnglish
Release dateApr 7, 2024
Factor Price Equalization: Unlocking the Global Trade Enigma, Mastering Factor Price Equalization

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