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Topical Terminology > Wage-rental Ratio



1 Definition

Wage-rental Ratio

For Wage-rental Ratio we have a term and definition in International Economics.



Wage-rental Ratio (International Economics)

The ratio of the wage of labor to the rental price of either capital or land, whichever is the other factor in a two-factor Heckscher-Ohlin model. The ratio plays a critical role in this model since it determines the ratios of factors employed in both industries.




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