scholarly journals The Basic for Trade According to International Trade Theories and Their Relation with Trade Policies

Ekonomika ◽  
1999 ◽  
Vol 47 ◽  
Author(s):  
Gražina Jatuliavičienė
Keyword(s):  
International Trade ◽  
Competitive Advantage ◽  
Comparative Advantage ◽  
Imperfect Competition ◽  
Economies Of Scale ◽  
Export Performance ◽  
Trade Policies ◽  
Theoretical Evaluation

In the article is presented an overview over some of the competing theories aimed at explaining the basis and gains of international trade. Key classical concepts such as absolute and comparative advantage are explained and extended to include modern-day realities. The article also deals with important new trade theories, which base trade on economies of scale and imperfect competition, as well as on competitive advantage. This leads to the theoretical evaluation of a country’s trade policies and their impact on export performance.

scholarly journals Pakistan’s Exports and Global Economy: Export Competitiveness and Efficiency of Toys and Games

2021 ◽  
Vol 4 (4) ◽  
pp. 811-819
Author(s):  
Muhammad Shahid Maqbool ◽  
Furrukh Bashir ◽  
Hafeez Ur Rehman ◽  
Rashid Ahmad
Keyword(s):  
International Trade ◽  
Competitive Advantage ◽  
Comparative Advantage ◽  
Global Economy ◽  
Export Performance ◽  
World Market ◽  
Revealed Comparative Advantage ◽  
Export Sector ◽  
The World ◽  
Export Competitiveness

The aim of this study is to examine the export performance and competitiveness of Pakistan's toy exports by using different indices of revealed comparative advantage. The data were looked at from the International Trade Centre (ITC) for Pakistan’s toys exports during 2004-2020. The results of this study show that Pakistan enjoyed a comparative advantage in exporting toys to the world market during 2004-2020, because the RCA index is greater than 1. The positive values of RSCA and LnRCA indicate that Pakistan had a CA in the concerned sector during 2004-2020. The study also observed that Pakistan had a competitive advantage by employing Vollrath index (RCA#). In addition, the revealed competitiveness index (RC) indicates that Pakistan experienced competitiveness in the toy export sector. The RMA index shows that Pakistan also enjoyed a comparative advantage in the imports of toys during 2004-2020. This means that Pakistan also imports these products from other economies of the world. The index of RTA describes that Pakistan had a net comparative advantage in this sector during analysis. TBI illustrates that Pakistan is the net-exporter in the toys and games sector in the global economy. Pakistan's toy manufacturers need to find new innovative and technologically advanced methods to stimulate domestic toy production and exports.

scholarly journals Export Specialization of India with Top Five Agricultural Economies: An Application of RCA and RSCA

2019 ◽  
Vol 8 (12) ◽  
pp. 4705-4708 ◽  
Keyword(s):  
International Trade ◽  
Comparative Advantage ◽  
Export Performance ◽  
Standard International Trade Classification ◽  
Revealed Comparative Advantage ◽  
Agriculture Sector ◽  
Indian Agriculture ◽  
World Demand ◽  
Trade Classification ◽  
Export Specialization

The paper attempts to determine Revealed Comparative Advantage (RCA) and Revealed Symmetric Comparative Advantage (RSCA) of Indian agriculture sector with respect to top five agriculture exporting countries viz; USA, UK, UAE, Singapore and China. The study evaluates the structure of comparative advantage from 1995-2017. Data as per the Standard International Trade Classification (SITC-1) is used to compute RCA and RSCA index. The indices reveals the comparative advantage in case of majority of commodities like fish, fish preparations, fruits, vegetables, sugar, sugar preparations, miscellaneous food products, wood, lumber and cork. Increasing world demand for exports trailed by the competitiveness of Indian exports has played an important role in export performance.

Regional trade agreements and the new theory of trade

2011 ◽  
Vol 10 (1) ◽  
pp. 49-63 ◽  
Author(s):  
Neelesh Gounder ◽  
Biman Chand Prasad
Keyword(s):  
International Trade ◽  
Trade Policy ◽  
Imperfect Competition ◽  
Trade Agreements ◽  
Regional Trade Agreements ◽  
Trade Policies ◽  
Regional Trade ◽  
Policy Makers ◽  
Content Type ◽  
Gains And Losses

PurposeThe purpose of this paper is to explore the two issues of regional trade agreements (RTAs) and the new theory of international trade and draw conclusions for Pacific Island countries (PICs). The authors provide a deeper conceptual treatment of the consequences of RTAs and analyse the new theory of international trade to explore its implications for trade policy in PICs.Design/methodology/approachWith regard to RTAs, the argument is developed in the context of the conjecture that questions the benefits from adopting more open trade policies with neighbours while maintaining restrictive policies towards the rest of the world. The authors draw on international and regional analytical literature and on recent modelling work to review critically the possible gains and losses of RTAs for PICs. In the latter issue, the focus is on the roles of imperfect competition and scale economies and their relevance to PICs.FindingsFreeing up trade gradually and unilaterally and realizing the benefits of comparative advantage remains the best way to maximise welfare. PICs could be worse off under a complex system of overlapping RTAs and existence of RTAs by Australia and New Zealand outside the region has the possibility of marginalizing weak PICs economies.Practical implicationsPICs are currently at a critical juncture in terms of trade policy making with various trade agreements being thrown in the region and this paper has the capacity to provide some answers to policy makers on the approach to take.Originality/valueThe paper offers insights into regional trade agreements and the new theory of trade.

scholarly journals Is Free Trade Passé?

1987 ◽  
Vol 1 (2) ◽  
pp. 131-144 ◽  
Author(s):  
Paul R Krugman
Keyword(s):  
International Trade ◽  
Free Trade ◽  
Comparative Advantage ◽  
Imperfect Competition ◽  
Perfect Competition ◽  
Trade Theory ◽  
International Trade Theory ◽  
Export Subsidies ◽  
Good Policy ◽  
Import Restrictions

If there were an Economist's Creed, it would surely contain the affirmations “I understand the Principle of Comparative Advantage” and “I advocate Free Trade.” Yet the case for free trade is currently more in doubt than at any time since the 1817 publication of Ricardo's Principles of Political Economy, and this is due to changes that have recently taken place in the theory of international trade. While new developments in international trade theory may not yet be familiar to the profession at large, they have been substantial and radical. In the last ten years the traditional constant returns, perfect competition models of international trade have been supplemented and to some extent supplanted by a new breed of models that emphasizes increasing returns and imperfect competition. These new models call into doubt the extent to which actual trade can be explained by comparative advantage; they also open the possibility that government intervention in trade via import restrictions, export subsidies, and so on may under some circumstances be in the national interest after all. To preview this paper's conclusion: free trade is not passé, but it is an idea that has irretrievably lost its innocence. Its status has shifted from optimum to reasonable rule of thumb. There is still a case for free trade as a good policy, and as a useful target in the practical world of politics, but it can never again be asserted as the policy that economic theory tells us is always right.

Review of Literature

2020 ◽  
pp. 13-35
Author(s):  
Murali Patibandla
Keyword(s):  
International Trade ◽  
Comparative Advantage ◽  
Developing Economies ◽  
Import Substitution ◽  
Trade Policies ◽  
Trade Theory ◽  
Reform Era ◽  
Strategic Trade ◽  
New Trade Theory ◽  
Trade And Investment

The chapter reviews fundamental theoretical contributions explaining determinants of international trade starting from comparative advantage, neo-technology theories, intra-industry trade, strategic trade policies and ‘New’ New Trade Theory. For developing economies, the Heckscher-Ohlin (H&O) Theory of Comparative Advantage in labour abundance is relevant. However, as countries start growing economically, neo-technology and intra-industry factors become relevant. The book traces the transition of international trade behaviour starting the Pre-reform era of import substitution to the Post-reform era of opening to international trade and investment. The conceptual discussion provides basic underlying theories in understanding international trade and investment behaviour of firms. It shows under what conditions international trade and investment are beneficial to a country. The discussion of the theories helps in formulating hypotheses for empirical testing in the following chapters.

scholarly journals Dumping – Unfair Trade Practice

2021 ◽  
Vol 92 ◽  
pp. 06033
Author(s):  
Roman Serences ◽  
Dagmar Kozelova
Keyword(s):  
International Trade ◽  
Trade Policy ◽  
Price Discrimination ◽  
Imperfect Competition ◽  
Economies Of Scale ◽  
Value Added ◽  
Graphical Analysis ◽  
Unfair Trade ◽  
Trade Practice ◽  
Unfair Trade Practice

Research background: The Globalisation gradually has removed the protection that has existed to protect producers against unfair trade practices. Existence of imperfect competition within an international trade is presented by descending curve of average costs while increasing economies of scale; it often leads some producers not to adjust the price in relation to the marker. In this case, we speak about dumping. Purpose of the article: The article deals with dumping issue – an unfair trade practice analysing EU trade policy including antidumping, related Slovak legislation, price discrimination and dumping model. Methods: From a methodological point of view, the article is divided into four parts; description of trade policy, antidumping and its legislation, price discrimination and dumping model. Methods of synthesis, critical thinking and graphical analysis were used. Findings & Value added: In practice, accounting of different prices to the various consumers is called a price discrimination. The most common type of price discrimination in foreign trade is a dumping. It is a price practice when a company accounts lower price for exported goods compared to the same goods sale at home. World Trade Organization (WTO) allow counter such injury via trade defence instruments (TDIs). The EU TDIs are appropriate to tackle new challenges to international trade, because the Commission had done to modernise the EU’s basic Anti-Dumping (AD) Regulations.

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