Micro Convergence and Macro Convergence: Factor Price Equalization and Per Capita Income

Factor price equalization implies the equality of prices of the same productive factors across countries owing to free trade. The present paper examines the relationship between factor price equalization and the equality of per capita (per worker) incomes in the contexts of the static Heckscher–Ohlin trade model and the dynamic two-sector neoclassical growth model. Factor price equalization is shown to be neither necessary nor sufficient for equality of per capita incomes across trading countries.     

Brand name recall: A study of the effects of word types,processing, and involvement levels

This study extends prior research on brand naming by comparing recall for five types of words in various involvement and processing conditions. Experimental findings show that the differences in recall are higher when there is semantic processing than when there is sensory processing. Involvement is not significant and hence provides no advantage for brand name recall. Several significant interactions among word types and information processing are also observed that extend prior findings in marketing and branding. More specifically, the results showed different recall pattern for the word types between semantic and sensory processing which was not observed in academic literature. Finally, the paper discusses implications for the naming of new products.