Structure of Production in Autarky
One of the elemental, though most important, questions in international trade concerns the determination of a country’s pattern of trade. Stated differently, why are countries induced to import goods if they can produce them at home? The answer to these questions, however, requires a prior comprehension of the structure of production in a closed economy or autarky. It is this latter question with which the present chapter is concerned. Specifically, we wish to determine the factors which influence commodity prices in the absence of trade.
KeywordsCommodity Price Factor Endowment Pure Theory Transformation Curve Factor Reward
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© Raveendra N. Batra 1973