Economics · International Economics
The Factor Price Equalization Theorem (Heckscher-Ohlin-Samuelson theorem) asserts that free international trade leads to the equalization of:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Tariff rates and transport costs
- 2Labor wage rates without affecting capital returns
- 3Both relative and absolute factor prices across countries✓
- 4Production volumes of goods across trading nations
Correct answer
Both relative and absolute factor prices across countries
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