The international movement of factors of production:

Question

Quizplus · Accepted Answer

The international movement of factors of production tends to make the prices paid to the factors of production among countries more similar over time. This is due to the fact that the movement of these factors allows countries to take advantage of different relative prices and levels of productivity, resulting in a more equal distribution of factors of production and therefore a more equal pricing of those factors.

The International Movement of Factors of Production