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Price definition |
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Price definitionA method of defining relative factor abundance based on ratios of factor prices in autarky: Compared to country B, country A is abundant in factor X relative to factor Y iff wXA/wYA XB/wYB, where wIJ is the autarky price of factor I in country J, I=X,Y, J=A,B. This is also known as the "Ohlin definition," since it is the one used by Ohlin (1933).Similar MatchesOperational DefinitionOperational DefinitionA description in quantifiable terms of what to measure and the steps to follow to measure it consistently. Deming has suggested that a good operational definition includes: 1) a criterion to be applied, 2) a way to determine whether the criterion is satisfied, and 3) a way to interpret the results of the test. An operational definition is developed for each KQC or process variable before data is collected. Quantity definitionQuantity definitionA method of defining relative factor abundance based on ratios of factor quantities: Compared to country B, country A is abundant in factor X relative to factor Y iff XA/YA > XB/YB, where IJ is the quantity of factor I with which country J is endowed, I=X,Y, J=A,B. Ohlin definitionOhlin definitionThe price definition of factor abundance. In contrast to the quantity definition, the price definition incorporates differences in demands as well as supplies. Due to Ohlin (1933). |
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