04-International Trade Theory分析和总结分析和总结.docxVIP

International Trade Theory This chapter has reviewed a number of theories that explain why it is beneficial for a country to engage in international trade and has explained the pattern of international trade that we observe in the world economy. We have seen how the theories of Smith, Ricardo, and Heckscher-Ohlin all make strong cases for unrestricted free trade. In contrast, the mercantilist doctrine and, to a lesser extent, the new trade theory can be interpreted to support government intervention to promote exports through subsidies and to limit imports through tariffs and quotas. In explaining the pattern of international trade, the second objective of this chapter, we have seen that with the exception of mercantilism, which is silent on this issue, the different theories offer largely complementary explanations. Although no one theory may explain the apparent pattern of international trade, taken together, the theory of comparative advantage, the Heckscher-Ohlin theory, the product life-cycle theory, the new trade theory, and Porters theory of national competitive advantage do suggest which factors are important. Comparative advantage tells us that productivity differences are important; Heckscher-Ohlin tells us that factor endowments matter; the product life-cycle theory tells us that where a new product is introduced is important; the new trade theory tells us that increasing returns to specialization and first-mover advantages matter; and Porter tells us that all these factors may be important insofar as they impact the four components of the national diamond. The following points have been made in this chapter: Mercantilists argued that it was in a countrys best interests to run a balance-of-trade surplus. They viewed trade as a zero-sum game, in which one countrys gains cause losses for other countries. The theory of absolute advantage suggests that countries differ in their ability to produce goods efficiently. The theory suggests that a country should sp