natural friend



  • In the Heckscher-Ohlin Model, an industry is a natural friend to a particular factor if a rise in the price of that industry alone causes an even larger proportional increase in the price of that factor, so that thereal return to that factor is increased. Used by Jones and Scheinkman (1977) to characterize the Ethier's (1974) generalization of the Stolper Samuelson Theorem.