[International Trade] HO Theorem | Part 8 | Meaning of Factor Price Equalisation Theorem | 25 |

[International Trade] HO Theorem | Part 8 | Meaning of Factor Price Equalisation Theorem | 25 |
www.ecopoint.i...
This video discusses in the context of H-O Model , Meaning of Factor Price Equalisation Theorem | 25 |
(REFERENCE : Krugman Chapter 5)
This is useful for those who are preparing
1) Intermediate Microeconomics Course in their semesters
2) UGC Net Economics
3) Basics of MA Economics Entrance Exam (DSE/ISI/JNU/IGIDR/MSE)
4) Indian Economic Services
#HeckscherohlinModel
#ECOPOINT
#nishantmehracom
#factorpriceequalizationtheorem
#HOMODEL
#INTERNATIONALTRADELECTURES
#gainsfromtrade
#maeconomicsentrance
#maeconomicsentrancecoaching
#ugcneteconomics
#indianeconomicservices
For any course related query please call 9999886629
or visit nishantmehra.com for IAS Economics Optional/ Indian Economic Services/ UGC Net Economics
or visit Ecopoint.in for MA Economics Entrance Coaching

[@KrishnenduJ-hc5fg]

If the prices converge in the 2 countries, does that mean there is no incentive to trade any further?

[@roshandeeppaul5687]

yes,when px/py =1 ,there remains no incentive further

[@devjitghosh550]

Sir there is a single relative price wage curve(SS curve) because technology is same between 2 countries? if you can kindly say 🙏🙏🙏

[@jaroslavgrigorin7597]

Same technology means that equal amounts of labor or capital yield equal amounts of goods in both countries, but because relative abundancies of factors are different, therefore, production possibilities in general are different. Demand curve will be the same for them, because of the assumption number 8 - same preferences and tastes.