Factor price equalization is an economic principle by Paul A. Samuelson (1948), which states that as a result of foreign trade in goods, prices of equivalent factors of output, such as wage levels or capital rents, would be equalized across countries. The theorem implies there are two goods and two growth factors for example, capital and labour. Other key assumptions of the theorem are that because of free trade in commodities, each country faces the same commodity prices, uses the same technology for production, and produces all goods. Crucially these assumptions contribute to the equalization of factor prices across countries without the need for mobility factor such as labor migration or capital flows.
Mini Review: Business and Economics Journal
Mini Review: Business and Economics Journal
Research Article: Business and Economics Journal
Research Article: Business and Economics Journal
Research Article: Business and Economics Journal
Research Article: Business and Economics Journal
Research Article: Business and Economics Journal
Research Article: Business and Economics Journal
Research Article: Business and Economics Journal
Research Article: Business and Economics Journal
Business and Economics Journal received 6451 citations as per Google Scholar report
Spanish 
Chinese 
Russian 
German 
French 
Japanese 
Portuguese 
Hindi 