International trade theory

More about the book

The evolution of international trade theory has resulted in a multitude of theories and concepts, yet these often present partial and conflicting views of economic interactions. Various trade models exist alongside one another without a coherent structure, leaving students grappling with incompatible theories in a single course. To address this inconsistency, a unified theoretical framework is essential to integrate the diverse branches of trade theory into an organized system. This book offers an accessible analytical engine that illuminates trade theory and its connections to broader issues such as inequality, saving habits, education, research policy, and knowledge. By constructing and analyzing various adaptable models within a cohesive framework, it enables readers to perceive economic life as a continuous process of physical and human capital accumulation, innovation driven by competition, monopoly, and government intervention. Beginning with traditional static trade theories, the book progresses to dynamic models that incorporate capital and knowledge in contexts of perfect and monopolistic competition. Its distinctive contribution lies in modeling trade dynamics comprehensively.