Factor price reconciliation is a term of the political economy and describes that by business connections the capital net yields and the wage rates between individual countries adapt themselves. Thus the globalization creates a kind common world market for work and capital, in which the today's differences in the factor prices will not any longer exist.

Economists are itself united that factor price reconciliation can be only prevented by political measures, if one accepts an increase of the unemployment ratio.

Articles in category "Factor price reconciliation"

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