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The New Palgrave Dictionary of Economics pp 6715–6725Cite as

Palgrave Macmillan

International Economics, History of

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Abstract

Starting with mercantilist theories, the article deals with laissez-faire rejections of mercantilism, the Ricardian justification of free trade and its extension to multiple countries and commodities. Heckscher–Ohlin trade theory, factor-price equalization and the ‘Leontieff paradox’ debate follow. Intra-industry trade is related to increasing returns, imperfect competition, and product differentiation. Trade and growth, economic geography, and tariffs and trade restrictions are summarized. Regarding macroeconomics, Hume and the monetary approach to the balance of payments are compared with income adjustment theories. International monetary regimes, exchange rate regimes, capital transfers, internal–external balance, and new international macroeconomics are discussed.

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    M. June Flanders

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Flanders, M.J. (2018). International Economics, History of. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2233

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