The conclusion that international trade will lead to an
Increase in real earnings of a country's abundant resource
Is known as:

Question

Quizplus · Accepted Answer

The conclusion that international trade will lead to an increase in real earnings of a country's abundant resource is known as the Stolper-Samuelson theorem. This theorem states that in a country with abundant labor, increased international trade will lead to an increase in the real earnings of labor and a decrease in the real earnings of capital. Conversely, in a country with abundant capital, increased international trade will lead to an increase in the real earnings of capital and a decrease in the real earnings of labor.

The Conclusion That International Trade Will Lead to an