Logo
Munich Personal RePEc Archive

World Resources Determine World Prices

Guo, Baoping (2017): World Resources Determine World Prices.

[thumbnail of MPRA_paper_90982.pdf] PDF
MPRA_paper_90982.pdf

Download (648kB)

Abstract

This paper derived a general equilibrium of the Heckscher-Ohlin model for the context of two-factor, multiple-commodity, and multiple-country (2 x N x M model). The equalized factor price (PFE) and world commodity price at the equilibrium are just the prices Dixit and Norman predicted, that the prices from equilibriums remains the same when the allocation of factor endowments changes within (the 2 x N x M) IWE box. The study shows how price-trade equilibriums reached for multiple countries and how world prices was determined. The equilibrium and world price structure shows that world (factor endowments) resources determine the world price. This is another core understanding of international trade.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.