Factor Price Equalization Theorem
Formulated by American economist Paul Samuelson (1915- ) on the basis of the Heckscher-Ohlin Trade Theory, factor price equalization theorem postulates that free trade in commodities will eliminate price differentials, thereby effecting an equalization of factor prices; especially wages and interest rates.
Written by: Jayashree Pakhare
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Tagged as Paul Samuelson + Categorized as Other, About economy, Economy articles