price definition

Definition

Economics

  • A method of defining relative factor abundance based on ratios of factor prices in autarky: Compared to country B, country A is abundant in factor X relative to factor Y iff wXA/wYA < XB/YB, where wIJ is the autarky price of factor I in country J, I=X,Y, J=A,B. This is also known as the "Ohlin definition," since it is the one used by Ohlin (1933).
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