International Economics

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International trade theory is shaped by the limited mobility of capital and labor across borders, distinguishing it from domestic trade while maintaining similar methodological foundations. Academic research in this field has often been driven by governmental trade restrictions, prompting the need to understand their impacts. Classical trade theory, rooted in Ricardo's Theory of Comparative Advantage, relies on deductive logic, while modern analysis emphasizes empirical methods, reflecting a shift in approach to understanding trade dynamics and policies.