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4 Cards in this Set
- Front
- Back
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Rybczynksi Theorem |
An increase in the endowment of one fop results in an increase in output of the good that intensively uses that fop, but decreases the output of the good that intensively uses the other fop |
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Hecksher-Ohlin Theorem |
A country will export the commodity that uses relatively intensively its relative abundant fop and it will import the good that uses relatively intensively its scarce fop |
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Factor price equalization |
As good prices converge with trade, factor prices also converge. Trade leads to equalization of returns to fops across countries |
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Stolper- Samuelson Theorem |
Trade leads to an increase in the price of the abundant fop which will increase real income while there will be a fall in the price of the scarce factor leading to falling real incomes for the owners of the scarce fop |
