Abstract
In international markets the equivalent of the owned assets and the skills of individuals and firms in internal markets is the difference in relative national resource endowments. In elementary theory, the effects of international competition are defined by comparison with an initial state of no trade. The typical question addressed is ‘What will happen if trade is opened up?’ On this view, international competition ‘causes’ trade because of the differences there would be, in the absence of trade, in the relative costs of production of pairs of goods in two countries. And the effect of international competition, and the ensuing trade, is to have ironed out some of these differences and to have increased in the process the aggregate equilibrium output of each good.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Caves, R.E. 1971. International corporations: The industrial economics of foreign investment. Economica 38: 1–27.
Caves, R.E., and R.W. Jones. 1981. World trade and payments: An introduction, 3rd ed. Boston: Little Brown.
Cornwall, J. 1977. Modern capitalism, its growth and transformation. London: Martin Robertson. ch. 10.
Grubel, H., and P. Lloyd. 1975. Intra-industry trade: The theory and measurement of international trade in differentiated products. New York: Wiley.
Houthakker, H.S., and S.P. Magee. 1969. Income and price elasticities in world trade. The Review of Economics and Statistics 51(2): 111–125.
Kanamori, H. 1968. Economic growth and exports. In Economic growth: The Japanese experience since the Meiji Era, ed. L. Klein and K. Onkawa. Homewood: Richard Irwin.
Leontief, W.W. 1934. Domestic production and foreign trade. Economica Internazionale 7: 3–32. Reprinted in American Economic Association, Readings in international economics, Homewood: Richard Irwin, 1968.
Linder, S. 1961. An essay on trade and transformation. Stockholm: Almqvist & Wiksell.
Schumpeter, J.A. 1942. Capitalism, socialism and democracy. New York: Harper.
Stout, D.K. 1977. International price competitiveness, non-price factors and export performance. London: National Economic Development Office.
Thirlwall, A.P. 1980. Balance of payments theory and the UK experience. London: Macmillan.
Venables, A.J. 1985. International trade, trade and industrial policy and imperfect competition: A survey. Centre for Economic Policy Research Discussion Paper No. 74, Oct.
Vernon, R. (ed.) 1970. The technology factor in international trade. National Bureau of Economic Research Conference Series No. 22. New York.
Wells, L. 1972. International trade: The product life cycle approach. In The product life cycle and international trade, ed. L. Wells. Cambridge, MA: Harvard University Press.
Author information
Authors and Affiliations
Editor information
Copyright information
© 2018 Macmillan Publishers Ltd.
About this entry
Cite this entry
Stout, D.K. (2018). Competition in International Trade. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_161
Download citation
DOI: https://doi.org/10.1057/978-1-349-95189-5_161
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-95188-8
Online ISBN: 978-1-349-95189-5
eBook Packages: Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences