Economics Dictionary of Arguments

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 Factor Intensity Reversal (FIR) - Economics Dictionary of Arguments
 
Factor Intensity Reversal: Factor Intensity Reversal occurs when a good that is, for example, labor-intensive in one country, becomes capital-intensive in another country. This happens if the relative factor prices (like wages vs. rental rates of capital) differ significantly between countries, leading firms to choose different production techniques for the same good. It challenges some predictions of the Heckscher-Ohlin model. See also Factors of production, Factor price, Heckscher-Ohlin model.
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Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments.
 
Author Item    More concepts for author
 
Feenstra, Robert C. Factor Intensity Reversal (FIR)   Feenstra, Robert C.

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Ed. Martin Schulz, access date 2026-06-09