In theoretical economics, for gains from trade we distinguish between
(a) A small country trading with RoW (Rest of the World), where the former is a price taker and cannot influence world prices, the maximum it can do is exchange at world prices. For a closed small economy by opening up to trade and partially specialise in its comparative advantage (cost advantage) helps to exchange more of the non-comparative advantage commodity from the world, thus taking the country to a higher utility schedule. Ex: For a production of clothing and food, say small country has a comparative advantage in food production, while the Row in clothing, thus small country can choose to produce food which it can more efficiently and then exchange it for clothing from RoW. Thus for a small country consumer more of both is available, raising utility.
(b) A large country trading with RoW, here the large country is a monopolist concerned with supply, and also affects world demand with its large demand for imports, hence a monopolist would choose not to operate at (a) P=MC and (b) remain on the inelastic part of the demand curve and hence resorting to an optimal tariff bound trade that takes it to the maximum utility. This is easy to understand and involves a derivation, but this is the essential introduction.
Internal trade mean within ones country. International trade mean All over the world. There are much to gain by moving international with ones products as the market will be a lot greater. Regards.
R&D, productivity, economic stability, military stability
How specialization affects international trade?
What in the world is this garbahhhge.
The International Trade Commission was organized in 1916.
Internal trade mean within ones country. International trade mean All over the world. There are much to gain by moving international with ones products as the market will be a lot greater. Regards.
High tariffs discouraged international trade.
Internal trade mean within ones country. International trade mean All over the world. There are much to gain by moving international with ones products as the market will be a lot greater. Regards.
R&D, productivity, economic stability, military stability
The international trade is at peak right now. It is a sentence to show the status of trade in international market.
How specialization affects international trade?
Mary Gillespie has written: 'A retrospective view of non-oil primary products from 1972 to 1988' -- subject(s): International trade, Primary commodities 'Mary Gillespie'
What in the world is this garbahhhge.
International Trade Mart was created in 1945.
International Trade Today was created in 1937.
International Trade Centre was created in 1964.
International Trade slowed as a result of the