According to the factor-price- equalization theory, international trade results in the relative differences in resource prices between nations being eliminated.
Answers
Answered by
3
Answer:
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.
Similar questions