Economics Stack Exchange
Economics Stack Exchange

Questions tagged [international-trade]

International trade theory is a sub-field of economics which analyzes the patterns of international trade, its origins, and its welfare implications.

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What are some critiques to the principle of comparative advantage?

The principle of comparative advantage says that, in a free market, any agent should produce more of the goods for which they have a comparative advantage. The model is usually applied to advocate for the benefits of international trade. This answer…
psn
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EU and North America with CETA

The CETA trade deal is supposed to involve only the EU and Canada, but Canada has already a trade deal with the USA and Mexico : I don't understand how this is possible. For example, if I own one company in Paris, one company in Toronto and one…
shadok
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Does immiserizing growth exist outside of theory?

For a course in international trade, our professor touched on the idea of immiserizering growth. He emphasized that immiserizing growth was a theoretical outcome from specialization of trade and did not provide the class with examples on the global…
Mathematician
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Why do there seem to be relatively few imports from India into the United States?

In the United States I see significant quantities of manufactured good imports made in Taiwan, Japan, China and Korea. However, there seem to be relatively few imports from India. Why is this?
Lassie Fair
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Is protectionism more suited to large economies?

Large economies like the US and China use tariffs as trade weapons while retaining competitiveness because they have the critical mass to encapsulate supply chains and avoid the cost of cross-border inefficiency. Smaller economies cannot avoid the…
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How can a RTA have a trade imbalance with itself?

I'm looking at ASEAN data for 2015. It seems the intra-ASEAN exports are 305bn USD while the intra-ASEAN imports are only 238 billion USD. Am I misreading the statistics or is it actually possible for a group of countries to have such an imbalance…
the gods from engineering
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International date line

What if international date line being shifted to Atlas Ocean? Most of trade partners will have different date, States and all America continents will enter day first etc. So what can be coincidence of this? I am asking this because I have read that…
slender
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Why don't shipping businesses own their own shipping containers?

About two or three years ago I attended a talk by a consulting statistician, one of whose clients was a company in the business of leasing out intermodal shipping containers. He said those who are in the business of using those containers to…
Michael Hardy
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Do trade policies have to change after Brexit?

Being part of the EU is surely not the only way to participate in a free trade market. Could the UK continue with the same policies despite not being part of the EU?
user29568
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Gravity Equation Interpretation

I have a question about the gravity equation. In the Feenstra textbook, on page 144, it is stated that In the monopolistic competition model [...] the countries are completely specialized in different product varieties. Trade in these product…
ChinG
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Difference between merchandise trade and trade in goods?

What is the difference between merchandise trade and trade in goods? Are they the same? If so, would total trade be just trade in goods + trade in services, aka merchandise trade + trade in services?
Viv
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Question about tariffs in Henry Hazlitt's Economics in One lesson

I've been reading Henry Hazlitt's Economics in One Lesson and he said something about free trade and tariffs that I don't quite understand. He uses the example of buying cheaper English sweaters over more expensive domestic sweaters. He says, "By…
namarino41
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Why are trade deficits considered unfair?

President Trump has accused Germany and China of unfair trading practices over trade deficits. What is unfair about trade deficits? This may be economics 101, but in my naive eyes every time a trade is done it is done deliberately because both…
Bananach
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is the home bias in trade puzzle (border effects) still a puzzle?

in 1995 McCallum publish a paper that showed evidence of border effects that later was coined the home bias in trade puzzle and became one of the 6 major puzzles in international economics. I am just wondering is it still a puzzle ? that is, is it…
EinusinniVar
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Why do rich and poor countries trade in different goods and why do rich countries trade in similar goods with other rich countries?

I think that differences in climate is one key factor but I think it could be explained by David Ricardo's theory on international trade differences???
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