Stolper-Samuelsona Effect

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The Stolper-Samuelson Effect - the price movement of the factors of production that is launched by international trade, which involves increasing the price of a factor in a country rich and decreasing the price of a factor in a given country, leads to a real income growth of the owners of the abundant factor and a decrease in the real incomes of the owners. factor of production in a rare country.

Changes in the real incomes of the owners of the factors of production are, in the opinion of some, reflected in the pressure groups. The proprietors of the abundant production factor are generally free trade advocates and the rationale holders are in favor of introducing trade restrictions. Bibliography

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