Stolper‐Samuelson Theorem o extension of factor-price equalization theory
increased income for producers of goods associated with relatively abundant resources
decreased income for producers of goods associated with relatively scarce resources
magnification effect – change in price of the resource (capital) is greater than the change in the price of the good produced with that resource (aircraft),thus owners of capital are better off
implication: overall, free trade provides gains to a nation but specifically some parties gain while others lose = aggravate income inequality