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THEORIES OF INTERNATIONAL TRADE - Coggle Diagram
THEORIES OF INTERNATIONAL TRADE
First theories
Mercantilist
Political and economic system based on the idea that countries are richer and more prosperous the more precious metals they can accumulate.
Positive trade balance
: Is a necessary means of financing the purchase of foreign goods from a country and maintaining its export trade.
Smith and the absolute advantages
Stresses the importance of free trade in increasing the wealth of nations, based on the example that no householder would try to produce at home a good that would incur a greater cost than buying it.
Ricardo and the comparative advantages
Refers to the concept of productivity in the economy, according to which nations must specialize and export what they know best.
Heckscher-Ohlin model (H-O) and factor abundance
Tries to show that abundant factor owners will gain from trade and scarce factor owners will lose.
"New theories" of international trade
Intra-industrial trade: first attempts
Implies that two or more partner nations buy and sell similar goods. This does not mean that they are exactly the same.
Imperfect competition and economies of scale
A situation in which production grows more than proportionally to the increase in inputs or factors of production, which means that if all inputs are doubled, production increases by more than double.
Monopolistic competition
: Is a type of imperfect competition, where there are many sellers of similar but non-homogeneous products. These sellers have some power to influence the price of their product, but not the market.
Model of reciprocal dumping
: Occurs when two monopolies dumping each on the other’s market, which can lead to the exchange of the same goods if transport costs do not prevent this. which would be added to the one you would continue to get on your own.
Strategic trade policy
It is an approximation to price effects that aims to enrich and complement the integration analyses that have traditionally been based on trade flows.
Structuralism
In his studies he takes as a model the exact sciences, to apply them in the logical structures, in analysis of the thought and the human behavior.
Centre-periphery and dependence theory
: The developed and industrialized countries of the Centre consume and exploit the resources of the Periphery developing countries dependent on natural resources, thus generating the economic, commercial and geopolitical dynamics that we can see today.
Dependency theory
: Denies the benefits of international trade proposed by the classical school and explains underdevelopment through subordination or subjugation to developed countries.
Evolutionism
Points out that today’s human being is the result of years of evolution. These changes have occurred through a series of stages that have shaped the human being today.
Novel theories
Stylized facts
Are regularities in the relations between economic phenomena. These relationships can take the form of mathematical functions between variables, but they must always respond to multiple experiences.
Causality between productivity and export status
The causal relationship between exports and productivity is in the opposite sense, that is, when the company starts exporting, it incurs costs such as market research, marketing, permits, licenses, among others.
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