 The Problems of Portuguese Economic DevelopmentL. T. Pinto
Chapter Chapter 11 in Economic Consequences of the Size of Nations, 1960, pp 182-189 from Palgrave Macmillan Abstract: Abstract It is generally recognized that in the absence of foreign trade a large country can, ceteris paribus, develop more rapidly than a small one.2 What difference does foreign trade make to this situation? The classical or traditional theory of foreign trade leads to the conclusion that small nations derive greater benefits from foreign trade than do large ones. We may quote J. S. Mill, who says in his Principles:3 It still appears, that the countries which carry on their foreign trade on the most advantageous terms, are those whose commodities are most in demand by foreign countries, and which have themselves the least demand for foreign commodities. From which, among other consequences, it follows, that the richest countries, ceteris paribus, gain the least by a given amount of foreign commerce: since, having a greater demand for commodities generally, they are likely to have a greater demand for foreign commodities, and thus modify the terms of interchange to their own disadvantage. Keywords: Foreign Trade; National Product; Marginal Propensity; Small Nation; Market Problem (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:intecp:978-1-349-15210-0_11 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-15210-0_11 Access Statistics for this chapter More chapters in International Economic Association Series from Palgrave Macmillan |
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