Question

Explain fully the contribution by Meade in International Trade.

Answer 1

Answer:

The theory of international trade is that branch of economic theory concerned with trade between nations and, more broadly, with all aspects of the economic relations between nations. The concept of a nation in this context is somewhat ambiguous and a matter of degree rather than of kind, but not so much so as to cause serious difficulty. To the classical economists, the distinguishing characteristic of a nation was the combination of internal mobility and international immobility of factors of production, an approximation that is, if anything, more appropriate to the twentieth than to the nineteenth century and still dominates the theory of international trade. It has, of course, long been recognized that a theory constructed on these assumptions is equally applicable to trade between geographic regions, whether these are contained within a larger national unit or themselves contain several nations. Report Advertisement

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International Trade

International Encyclopedia of the Social Sciences  

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International Trade

The field of international economics covers both international financial transactions and international trade in commodities and services. The first article below provides an integrated theory of these two major aspects of the field. The remaining articles under this entry deal with the theory and patterns of international trade. For government regulation of international trade, seeInternational trade controls. For further discussion of international financial transactions, seeInternational monetary economics. Other important aspects of international trade are discussed inInternational integration, article oneconomic unions, and in the article onCommodity agreements,international. Also relevant isCommunism, economic organization of, article oninternational trade.

I. THEORYHarry G. Johnson,

BIBLIOGRAPHY

II. MATHEMATICAL THEORYLionel W.McKenzie

BIBLIOGRAPHY

III. TERMS OF TRADEM. C. Kemp

BIBLIOGRAPHY

IV. PATTERNS OF TRADEMichael Michaely

BIBLIOGRAPHY

I. THEORY

The theory of international trade is that branch of economic theory concerned with trade between nations and, more broadly, with all aspects of the economic relations between nations. The concept of a nation in this context is somewhat ambiguous and a matter of degree rather than of kind, but not so much so as to cause serious difficulty. To the classical economists, the distinguishing characteristic of a nation was the combination of internal mobility and international immobility of factors of production, an approximation that is, if anything, more appropriate to the twentieth than to the nineteenth century and still dominates the theory of international trade. It has, of course, long been recognized that a theory constructed on these assumptions is equally applicable to trade between geographic regions, whether these are contained within a larger national unit or themselves contain several nations.