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Samuelson's Factor Price Equalisation Theorem

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Jul 17, 2020
20:33

This video discusses about Samuelson's factor price equalization theorem. Theorem says that, under free trade and disregarding all impediments to trade, international trade will leads to complete factor price equilisation across trading countries. Trade in goods, under the usual assumption of immobility of factors between nations, is considered as a substitution for factor mobility.

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Samuelson's Factor Price Equalisation Theorem | NatokHD