1. What is factor price equalization and why do we care? Who gains and who loses if we move from a state in which factor prices are not equalized to one in which they are equalized. Should Canada push to have a multilateral agreement on investment to safeguard investors' returns at the cost of reduced domestic abilities to target domestic subsidies for locally owned industries?

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Factor price equalization refers to the longterm tendency for the prices of factors of production su... View the full answer