The Evolution of International Trade Theory

Branko Horvat
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Branko Horvat: The Institute for Advanced Studies

Chapter 2 in The Theory of International Trade, 1999, pp 7-9 from Palgrave Macmillan

Abstract: Abstract Trade will open up between two formerly autarkic economies if differences in production conditions warrant a profitable exchange of goods under the ruling terms of trade. In particular, a firm will decide to export its product x when the domestic price is lower than the international one.

Date: 1999
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DOI: 10.1057/9780333983386_2

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