A theory concerning the income distribution effects of inter-industry trade. It shows the effects of trade in a two-good, two-factor model with constant returns to scale and incomplete specialization. The theorem shows that trade raises the real income of a country's plentiful factor, which is used relatively heavily by the exportables industry, but lowers the real income of the country's scarce factor, which is used relatively heavily in the importables industry. This is held to explain opposition to free trade. The model ignores the possible effects of complete specialization, of intra-industry trade, and of fiscal action to compensate any losers from trade.

• multiple equilibrium
• multiple exchange rates
• multiple regression
• multiplier
• multiplier-accelerator model
• multi-product firm
• mutual fund
• NAFTA
• NAIRU
• name
• name at Lloyd's
• narrow-band ERM
• NASDAQ
• Nash equilibrium
• national accounts
• National Association of Securities Dealers Automated Quotation System
• National Bureau of Economic Research
• national debt
• National Economic Development Council
• National Health Service
• national income
• national income accounts
• National Institute of Economic and Social Research
• National Insurance contributions
• nationalization