Equilibrium of Prices
Assumptions of Free Trade
Perfectly Competitive Business
Management Theories like Hygiene factors, Abraham Maslow
Increase in Interest Rate and Investment Spending
Shifts in Demand with regard to increase in Production and demand
GDP Deflator and its corresponding effect on the economy
Real GDP and corresponding effect on price, income and savings
Permutation and Combination
Circle and its relation with the circumference and Angles in the circle
Angles and their relation
Ratio Analysis (very very careful)
Analytical Ability and critical Reasoning
Math ...view middle of the document...
Another difference between domestic and international trade is that factors of production such as capital and labor are typically more mobile within a country than across countries. Thus international trade is mostly restricted to trade in goods and services, and only to a lesser extent to trade in capital, labor or other factors of production. Trade in goods and services can serve as a substitute for trade in factors of production.
Instead of importing a factor of production, a country can import goods that make intensive use of that factor of production and thus embody it. An example is the import of labor-intensive goods by the United States from China. Instead of importing Chinese labor, the United States imports goods that were produced with Chinese labor. One report in 2010 suggested that international trade was increased when a country hosted a network of immigrants, but the trade effect was weakened when the immigrants became assimilated into their new country.
International trade is also a branch of economics, which, together with international finance, forms the larger branch of international economics.
Ancient silk road trade routes across Eurasia.
Contents [hide] * 1 Models * 1.1 Adam Smith Model * 1.2 Ricardian model * 1.3 Heckscher-Ohlin model * 1.3.1 Reality and Applicability of the Heckscher-Ohlin Model * 1.4 Specific factors model * 1.5 New Trade Theory * 1.6 Gravity model * 1.7 Ricardian theory of international trade (modern development) * 1.7.1 Contemporary theories * 1.7.2 Neo-Ricardian trade theory * 1.7.3 Traded intermediate goods * 1.7.4 Ricardo-Sraffa trade theory * 2 Largest countries by total international trade * 3 Top traded commodities (exports) * 4 Regulation of international trade * 5 Risk in international trade * 6 Gallery * 7 See also * 8 Notes * 9 References * 10 External links * 10.1 Data * 10.1.1 Official statistics * 10.1.2 Other data sources * 10.2 Other external links |
Several models have been proposed to predict patterns of trade and to analyze the effects of trade policies such as tariffs, quotas and subsidies. Exchange rates are newer models.
 Adam Smith Model
Adam Smith displays trade taking place on the basis of countries exercising absolute cost advantage over one another.
 Ricardian model
The Ricardian model focuses on comparative advantage, perhaps the most important concept in international trade theory. In a Ricardian model, countries specialize in producing what they produce best, and trade occurs due to technological differences between countries. Unlike other models, the Ricardian framework predicts that countries will fully specialize instead of producing a broad array of goods.
Also, the Ricardian model does not directly consider factor endowments, such as the relative amounts of labor and...