Economics Dictionary of ArgumentsHome
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| Factor Price Insensitivity - Economics Dictionary of Arguments | |||
| Factor Price Insensitivity: Factor Price Insensitivity (FPI) is a concept in international trade theory, particularly within the Heckscher-Ohlin framework. It states that if a country produces both goods (diversified production) and faces given world product prices, then the prices of its factors of production (like wages and rental rates) will remain unchanged even if the country's factor endowments (e.g., labor supply, capital stock) change. This holds under specific conditions, notably the absence of factor intensity reversals. See also Trade, International trade, Heckscher-Ohlin model._____________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 Insensitivity | Feenstra, Robert C. | |
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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 2026-06-18 | |||
