Economics Dictionary of ArgumentsHome
| |||
|
| |||
| Factor Price Equalization Theorem - Economics Dictionary of Arguments | |||
| Factor Price Equalization Theorem: The Factor Price Equalization Theorem (FPE) states that, under certain assumptions, free trade in goods will lead to the equalization of prices for identical factors of production (like wages and capital rents) across trading countries. This occurs even without factor mobility, as trade effectively acts as a substitute for it. Key assumptions include identical technologies and perfect competition. See also Perfect competition, Imperfect competition, Techology, International trade._____________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 Price Equalization Theorem | Feenstra, Robert C. | |
|
Authors A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Concepts A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Ed. Martin Schulz, access date 2026-06-09 | |||
