Abstract
In the last chapter we studied how changes in the commodity-price ratio occur under the thrust of variations in the factor-price ratio, the overall capital/labour ratio and the relative rate of technical advance in the two industries. Any theory attempting to explain the basis of international trade must always commence with the theory of resource allocation and production in a closed economy. This task having been accomplished in the previous chapters, we are now in a position to pinpoint the factors that determine a country’s pattern of trade. The issue is what goods a country will export and import. Stated differently, is it possible to predict a country’s configuration of exports and imports just by examining the characteristics of a closed economy? Seeking a clear-cut answer to this query constitutes the subject-matter of this chapter.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Bhagwati, J., ‘The Proofs of the Theorems on Comparative Advantage’, Economic Journal, lxxvii (Mar 1967) 75–83.
Chipman, J. S., ‘A Survey of the Theory of International Trade: Part 3, The Modern Theory’, Econometrica, xxxiv (Jan 1966) 18–76.
Heckscher, E. F., ‘The Effect of Foreign Trade on the Distribution of Income’, in Readings in the Theory of International Trade, ed. H. S. Ellis and L. A. Metzler ( Philadelphia: Blakiston, 1949 ).
Inada, K., ‘A Note on the Heckscher-Ohlin Theorem’, Economic Record, xliii (Mar 1967) 88–96.
Johnson H. G., ‘Factor Endowments, International Trade and Factor Prices’ Manchester School of Economic and Social Studies, xxv (Sep 1957) 270–83.
Kemp, M. C., The Pure Theory of International Trade ( Englewood Cliffs, N.J.: Prentice-Hall, 1964 ).
Leontief, W. W., ‘Domestic Production and Foreign Trade: The American Capital Position Re-examined’, Proceedings of the American Philosophical Society, xcvii (Sep 1953) 332–49.
Marshall, A., The Pure Theory of Foreign Trade ( London: London School of Economics and Political Science, 1949 ).
Mill, J. S., Principles of Political Economy with Some of their Applications to Social Philosophy, 3rd ed. (London: Parker & Co., 1852).
Ohlin, B., Interregional and International Trade ( Cambridge, Mass.: Harvard U.P., 1933 ).
Ricardo, D., On the Principles of Political Economy and Taxation ( London: John Murray, 1817 ).
Robinson, R., ‘Factor Proportions and Comparative Advantage’ Quarterly Journal of Economics, lxx (May 1956) 169–92.
Copyright information
© 1973 Raveendra N. Batra
About this chapter
Cite this chapter
Batra, R.N. (1973). The Basis of International Trade. In: Studies in the Pure Theory of International Trade. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-01423-1_3
Download citation
DOI: https://doi.org/10.1007/978-1-349-01423-1_3
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-01425-5
Online ISBN: 978-1-349-01423-1
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)