Do Multinational Firms Adapt Factor Proportions to Relative Factor Prices? Nber Form

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someone introduced a very important idea for international trade analysis especially in a general equilibrium context which is what's known as the relative price of goods now everyone's familiar with prices and people usually think of it is something like twenty thousand dollars for a car that's what economists would call a a nominal price that is how many units of the currency twenty thousand dollars for every unit of the product that you're trying to considering buying or selling for that matter from a supplier standpoint but we want to think very hard about when you buy one good how much of the other good you forego in terms of purchase or if you're selling from a firm standpoint if I sell this good what is that equal to in terms of other goods say if I want to buy the other good or if I'm trying to decide between selling this good or that good that I can that I can produce so it's probably easy just to give an example of this so in this particular situation we've got two nominal pr