A Brief Historical Introduction to the Theory and Practices of International Trade
- Distinguishing features of Inter-regional and International Trade
Gains from Trade
The gains from trade theorem - free trade versus no trade (autarky)
Restricted/subsidized trade versus autarky
Free trade versus restricted trade
Failures of the gains from trade theorem "non-convexities" "non-tangencies"
Distribution of gains between countriesEquilibrium prices relative to autarky prices
Distribution of gains between individuals within countries Identical endowments, different preferences
Identical preferences, different endowments
Bases for Trade
The No-Trade Model
Identical production functions in all countries
Same relative factor endowments in all countries
Constant Returns to Scale
Identical and Homogeneous preferences in trading countries
No Distortions (imperfect competition, externalities, taxes).
Ricardian Model - Technology as a basis for Trade
A one-factor model of technology differences. Comparative versus absolute advantage
Production frontier, closed-economy equilibrium
Comparative advantage and autarky price ratios: Pattern of comparative advantage reflected in autarky prices
Excess demand and international equilibrium
The distribution of gains between countriesBig versus small countries, More productive versus less productive countries
Real wage comparisons across countries - The role of equilibrium prices, The role of absolute advantage
The Heckscher-Ohlin Theorem
The Factor-Price-Equalization Theorem
The Stolper-Samuelson Theorem
The Rybczynski Theorem
The Leontief Paradox
Government Policies and Distortions as Determinants of Trade
Distinguishing among producer, consumer, and world prices.
Autarky equilibrium, where does tax revenue go?
Small economy facing fixed world prices: distortions as a basis for (bad) trade.
Two identical economies, except one has a distortion.
Gains-from-trade analysis: the expansion condition revisited.
Factor market distortions.
Trade Policy: Tariffs
Tariffs, prices and welfare in a small economy
Equivalence of an import tariff and export tax
Existing distortions, second best, “infant industry argument
Terms of trade and the optimal tariff
Tariffs and retaliation, trade wars
Effective protection, internal income redistribution
Quotas and Other Barriers
Methods of instituting a quota
Types of import quotas, Effects of import quotas
The equivalence of tariffs and quotas
Voluntary Export Restraints
Terms of Trade and Economic Development: The Secular Deterioration Hypothesis
The Prebisch-Singer Thesis
ASEAN and NAFTA
Association of South East Asian Nations; North American Free Trade Agreement
MilitiadesChacoliades: Principles of International Economics, (McGraw-Hill Publishing Co., 1981)
Robert C. Feenstra, Advanced International Trade: Theory and Evidence, (Princeton University, 2004).
Caves, Frankel & Jones: World Trade and Payments An Introduction (Pearson Education, 9th Edition).
Peter B. Kenen: The International Economy, (Cambridge University Press, 4th Edition).