Ohlin's Factor Price Equalization Theorem
In International Trade, commodities move instead of factors.According to Bertil Ohlin,"Commodity movement acts as a substitute for factor movement in bringing about factor price equalisation."Image Credits © Butler University.In a two country model with relatively large differences in their endowments (capital and labour), prior to trade the prices of
Monday, 21 March 2011
Ohlin's Factor Price Equalization Theorem with Diagram
Posted on 05:01 by Unknown
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