Stolper-Samuelson Theorem

Definitions (2)

1. The proposition of the Heckscher-Ohlin Model that a rise in the relative price of a good raises the real wage of the factor used intensively in that industry and lowers the real wage of the other factor.
2. The further proposition (requiring addition assumptions) that protection raises the real wage of a country's scarce factor and lowers the real wage of its abundant factor. Due to Stolper and Samuelson (1941).

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You should read up on the stolper-samuelson theorem and see if you can make it work in your businesses favor.

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The Stolper-Samuelson Theorem had suggested that the increase in the price of the input had effects across the market economy.

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I had to learn about the proposition called stolper-samuelson theorem and it caused me a lot of confusion and I decided to not learn about it.

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