To what extent does trade bring returns to labor and capital closer together across nations? This video covers how trade equalizes factor prices and what this means for the price of goods. The video also discusses the Heckscher-Ohlin Theorem, the Stolper-Samuelson Theorem, and the "magnification effect."
International Trade course: http://mruniversity.com/courses/international-trade
Ask a question about the video: http://mruniversity.com/courses/international-trade/factor-price-equalization#QandA
Next video: http://mruniversity.com/courses/international-trade/heckscher-ohlin-theorem-model
