International Trade Theory: Hume to Ohlin

International Trade Theory: Hume to Ohlin

International Trade Theory: Hume to Ohlin

International Trade Theory: Hume to Ohlin

Excerpt

International trade theory pertains to a number of key questions at various levels of analysis. The two most fundamental matters are: (1) the conditions or prerequisites, both proximate and "ultimate," of mutually beneficial, two-way exchange and (2) the nature and incidence of the gains from rational exchange. Analysis of these two topics soon involves others of detail: (3) the patterns of production and of trade and (4) the terms on which the trade is conducted. At a still more detailed level, additional questions arise, including: (5) the effects of trade on prices of both outputs and factors of production and (6) the effects of trade on domestic income distribution.

Whereas trade theory focuses on the bases of, and the gains from, trade, the study of international finance may be considered as centering around the balance of payments and the mechanisms of its adjustment. More generally, international finance is concerned with international monetary equilibrium and its relation to domestic equilibrium; the nature, measurement, and consequences of disequilibrium; the various methods of correcting the disequilibrium or suppressing symptoms of disequilib-

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.