Abstract
Trade will open up between two formerly autarkic economies if differences in production conditions warrant a profitable exchange of goods under the ruling terms of trade. In particular, a firm will decide to export its product x when the domestic price is lower than the international one.
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© 1999 Branko Horvat
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Horvat, B. (1999). The Evolution of International Trade Theory. In: The Theory of International Trade. Palgrave Macmillan, London. https://doi.org/10.1057/9780333983386_2
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DOI: https://doi.org/10.1057/9780333983386_2
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-40784-2
Online ISBN: 978-0-333-98338-6
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