international trade theories

International Trade Theories (Part ii) 1.THEORY OF ABSOLUTE COST ADVANTAGE This theory was proposed by the Scottish economist namely Adam Smith in 1776. It is based on the principle of Division of labour. According to him application of this principle to international scenario helps the countries to specialise in the production of those goods in … Read more

INTERNATIONAL TRADE THEORIES To better understand how modern global trade has evolved, it’s important to understand how countries traded with one another historically. Over time, economists have developed theories to explain the mechanisms of global trade. International Trade Theory refers to the concepts, models, and explanations justifying why countries undertake trade with one another and … Read more