The Stolper-Samuelson Theorem: Assumptions: One country produces two goods (wheat and cloth) with two factors of production (capital and labor); neither good is an input into the production of the other; competition prevails; factor supplies are given; both factors are fully employed; both factors are mobile between sectors (but not between countries); one good (wheat) is capital-intensive and the other (cloth) is labor-intensive); opening trade raises the relative price of the export good.

The Stolper-Samuelson Theorem moving from no trade to free trade raises the returns to the factor used intensively in the rising-price industry, and lowers the returns to the factor used intensively in the falling-price industry, regardless of which goods the sellers of the two factors prefer to consume