Скачать или смотреть Theories of international trade

It should be acknowledged that free trade and comparative advantage may promote expanded export earnings and increase output levels but it does not implicitly means that this is the desirable strategy for economic and social development.

All the theories assume some ideal conditions, which may not be prevalent in the real world.
Eg., governments may interfere with free trade to promote a particular sector of the economy. This may be in forms of differential taxation or other incentives.

International trade theory based on comparative advantage needs to accept that there is strong argument that there is no completely free market and the cornerstone longer hold true in all circumstances.

The existence of a natural comparative advantage and international trade is not necessarily sufficient for greater social and economic development.

These theories of international trade may also not be sufficient to explain which type of exports from which countries could be developed in order to compete in the international market.