Q. International trade leads to complete equalization of factor prices. Discuss.

Answer: This statement is usually "true...but". Under a limited and strict set of assumptions such as the original Heckscher-Ohlin model which keep out country specific technologies, factor intensity reversals, non- homothetic tastes, large country differences in (relative) factor abundances, as well as more factors than goods after that it may be demonstrated that internal consistency demands that the above stated sentence is "true". Though the minute one relaxes any of the above listed assumptions one may effortlessly identify solutions that contradict the factor price equalization theorem.