Abstract
The pure theory of international trade is concerned with the fundamental relationships which exist between two trading bodies. In one sense it is a branch of exchange theory, but because the exchanging bodies are, on the whole, countries, additional relationships come into play. It was often debated in the past – although the distinction is readily accepted today – as to why we should have a theory of international trade, i.e. whether there is a distinction between inter-regional trade and international trade. The usual reasons given for distinguishing the two are: (i) international immobility of factors of production; (ii) independent monetary systems; (iii) the existence of political boundaries and controls which go with them; and (iv) greater geographical differences and greater transport costs. However, each of these is a matter of degree only.
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© 1972 R. Shone
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Shone, R. (1972). Introduction. In: The Pure Theory of International Trade. Macmillan Studies in Economics. Palgrave, London. https://doi.org/10.1007/978-1-349-01405-7_1
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DOI: https://doi.org/10.1007/978-1-349-01405-7_1
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