Differences between trade partners in real hourly wage rates for unskilled labor illustrate

Question

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Differences in real hourly wage rates for unskilled labor between trade partners can be attributed to differences in capital endowments. Countries with better capital endowments have higher labor productivity, which translates to higher wages. Therefore, this highlights the importance of different capital endowments in international trade. Factors such as accounting procedures and disequilibria created by international trade may be relevant, but they do not directly explain the wage rate differences between trade partners. The factor-price equalization theorem and the principle of comparative advantage also do not provide a comprehensive explanation for this phenomenon.

Differences Between Trade Partners in Real Hourly Wage Rates for Unskilled