finance and theories
Part II Core Theory: Classic International Trade Theories
Table of Contents
Part II Core Theory: Classic International Trade Theories.........................2
1. Mercantilism ...........................................................................................2
The Classical World of David Ricardo and Comparative (Chapter 3) .......3
Advantage ...................................................................................................3
Absolute Advantage and Comparative Advantage .....................................5
Problems of Using Absolute Advantage to Guide Allocation of Tasks......8
Ricardian Comparative Advantage .............................................................9
Resource Constraints: ...............................................................................18
Complete Specialization: ..........................................................................20
Technological take over by less developed countries...............................21
Production Possibilities: ...........................................................................21
Complete versus Partial Specialization ....................................................23
The case of a small country ......................................................................24
Some concluding observations .................................................................25
2. Extensions and Tests of the Classical Model of Trade (chapter 4).......26
2.1 The classical model in money terms...................................................27
2.2 Changes in wages and exchange rates ................................................28
2.3 Multiple commodities .........................................................................30
-1-
Part II Core Theory: Classic International Trade Theories
1. Mercantilism and the Transition to Ricardo Theory of International Trade
2. Extensions and Tests of the Classical Model of Trade
1. Mercantilism
Table of Contents
Part II Core Theory: Classic International Trade Theories.........................2
1. Mercantilism ...........................................................................................2
The Classical World of David Ricardo and Comparative (Chapter 3) .......3
Advantage ...................................................................................................3
Absolute Advantage and Comparative Advantage .....................................5
Problems of Using Absolute Advantage to Guide Allocation of Tasks......8
Ricardian Comparative Advantage .............................................................9
Resource Constraints: ...............................................................................18
Complete Specialization: ..........................................................................20
Technological take over by less developed countries...............................21
Production Possibilities: ...........................................................................21
Complete versus Partial Specialization ....................................................23
The case of a small country ......................................................................24
Some concluding observations .................................................................25
2. Extensions and Tests of the Classical Model of Trade (chapter 4).......26
2.1 The classical model in money terms...................................................27
2.2 Changes in wages and exchange rates ................................................28
2.3 Multiple commodities .........................................................................30
-1-
Part II Core Theory: Classic International Trade Theories
1. Mercantilism and the Transition to Ricardo Theory of International Trade
2. Extensions and Tests of the Classical Model of Trade
1. Mercantilism