Multiple Choice
Factor-price equalization means that:
A) trade will have a tendency to equalize the prices of factors of production among countries that trade.
B) international trade theory has nothing to do with reality.
C) international trade will tend to only equalize the price of labor among countries.
D) international trade has no influence on the prices of factors of production in countries that trade.
E) trade does not influence factor prices.
Correct Answer:
Verified
Correct Answer:
Verified
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