Questions tagged [international-trade]

International trade theory is a sub-field of economics which analyzes the patterns of international trade, its origins, and its welfare implications.

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How would the world economy change if intercontinental transport was five times more expensive than today?

I am asking this question in light of climate change mitigation. I am working with the assumption that many ways of emitting green house gases can be stopped with better technologies. Electric cars ...
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What is the acquired advantage theory in international trade?

Is it the comparative advantage or absolute advantage or something all together different?
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How did empires make wealth out of empire-colony trade?

It is commonly discussed that one way the empires of 16-18th would receive wealth from colonies is: Get raw materials from a colony Transport them to the empire Make more sophisticated products out ...
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Was the council bill system used in British India a wealth extraction mechanism?

Jason Hickel says that the council bill system used to pay exporters of Indian goods during the British Raj was a mechanism by which Britain extracted wealth from India without giving India anything ...
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Reference request: book on international trade theory will full mathematical derivations

I am doing some self-study on international trade theory, and have been using the book by Feenstra Advanced International Trade Theory as my textbook. The book is good and relatively rigorous, but my ...
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Why does Taiwan dominate the semiconductors market?

The recent visit of US politician Nancy Pelosi to Taiwan generated a lot of news about the dependence the world has on Taiwan, given its dominance of the semiconductor market. But I couldn't find ...
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How are real estate purchases accounted in international trade?

If an investor in France buys a house in Mexico (for example): Does this count as an export form Mexico? Does it increase Mexico's trade surplus and France's trade deficit - or the opposite - or ...
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Why do certain modern country leaders care about trade deficits so much?

A central tenet of mercantilism is that every country should strive to have favorable balance of payments. However, this theory has long been abandoned (or so it seems), but leaders still appear to ...
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How to get Customs data for importing companies?

I am looking for customs data for importing companies for each country. I found some of them, for instance Canadian Importers Database But I wonder if any of you know the additional free sources. ...
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If the value of the currency of an economy rises, then is it less desirable to trade with that economy?

I recently heard on a video that when the value of the currency of an economy rises, it is less desirable to trade with that economy. I couldn't understand it.
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Would the more robust global economy resulting from the abolition of trade be worth any costs? What would happen to the economy?

How can a giant volcanic eruption devastate the world? Aside from the immediate fatalities, the eruption can devastate the world’s economy and climate cannot be understated. A good comparison would be ...
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No profits if labour is the only input into production?

I'm studying the Richardian model now - it says that, if labour is the only input into production, there are no profits, so workers receive the full value of their output - i can't wrap my head around ...
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Where to find historical international export data?

Writing a paper on revealed comparative advantage and it’d be super helpful to have historical data on exports of different goods going back 30+ years. Ideally I’d be able to filter by industry and ...
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Effect of Quota on imported goods

Can someone explain why? As far as I am concerned, quotas increase the price, decrease the consumer surplus, and increase the producer surplus.
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A comparative advantage problem in Dominick Salvatore International Economics

I'm recently encountering a question in Chapter 2 The Law of Comparative Advantage in the supplementary test bank of International Economics written by Dominick Salvatore If nation A can produce 5 ...
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When the country's currency is falling, does it make sense for Central Bank to intervene beyond curbing Volatity?

Consider a country who have more imports than exports. If the country's currency is falling badly with reference to the dollar (and the dollar is the main trading currency for the said country), then ...
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What does Milton Friedman mean by - "if they sell things to us in dollars then they are going to spend those dollars back here" (link below)

https://www.youtube.com/watch?v=fkHdq_2EUk4&ab_channel=FreeToChooseNetwork I'm currently studying international trade at the undergraduate level. I feel like I should understand this, but Milton ...
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Is debt eventually negative for nonnegative $y_t\to 0,c_t\not\to 0$?

Suppose $d_t=\sum_{k=0}^\infty \rho^k (y_{t+k}-c_{t+k})$ and $\rho\in (0,1),y_t\geq 0,c_t>0\quad \forall t\geq 0$. Does $y_t\to 0,c_t\not\to 0$ imply $d_t$ is eventually negative? My initial hunch ...
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Finding out what a product is from its Harmonized System code: photographic lab equipment

The Harmonized System is a set of codes for every possible thing that is imported or exported, mainly for determining the tax tariffs. The full list of codes can be found here. I'm interested in a ...
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Why hasn't Lukashenka's regime collapsed, for purely economical reasons?

Following the Ryanair incident, pretty much all Belarusian exports are now banned by the EU, its key trade partner (including oil products and potassium). Putin now has other pressing matters to ...
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What are examples of small highly-industrialized country and large less-industrialized country?

I am reading a theoretical paper of (Furusawa, 2007) regarding the FTA, they quoted: Let us consider, for example, an FTA between a highly-industrialized small country and a less-industrialized large ...
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Which industries are more and less subject to supply chain disruption?

From my point of view, supply chain can affect many industries. However, from my point of view, there should be industries subject more or less to supply chain (e.g., supply chain disruption). From ...
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Asking about the third country effect of Free Trade Agreement?

When signing a new Free Trade Agreemnent (FTA), a country will get two surpluses (direct surplus effect and the third country effect). Furusawa (2007) describes the third country effect as below: ...
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How to handle Free Zones in international trade data?

I have a import trade data of country "A". This trade data includes some categories : National Trade Free zones Other The data collection method is unknown to me, so I don't know if Free ...
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How to detect verion of HS 6 digits code?

I have trade data with HS 6 digits codes. However, I don't know which version of HS is used. I wonder if there is any practice in statistics to detect which version (HS1, HS2...HS5) is used?
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Perception of value between different currencies

So let's say I am going to sell a game and I'm trying to come up with a fair price. The thing is, I am from Brazil and I'm selling in an online platform where most products are priced in dollars. The ...
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What would happen if China were to suddenly stop all trade with the US?

What would happen if China were to suddenly stop all trade with the US (for political reasons)? Have any respectable economists made any predictions about the consequences of such a move for the ...
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Under what circumstances does trade yield Pareto-inferior results?

The usual assumption is that free trade always increases aggregate gains. This has in fact been proven for various models of trade between countries, though there are counterexamples if one makes ...
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Why Developing countries, especially exporters are most vulnerable to strong US Dollar?

Developing countries, especially exporters such as Argentina and Turkey, are among the most vulnerable, says Harvard economics professor Jeffrey Frankel. Excerpt from: https://www.bloomberg.com/news/...
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Impact of current account on FX performance

I was wondering if someone can explain why countries running current account surpluses should expect their currency to appreciate while countries running current account deficits to depreciate?(...
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Effect of a higher relative price of computers on wage/rental

Can someone explain to me in a very simplified way what is happening on this graph? I do not understand why the Ls/Ks and also the Lc/Ks both shift to the right.. I understood it this far: Due to ...
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Calculating home bias in trade

I want to make a simple estimation of home bias in trade within the EU countries by using aggregated data from CEPII dataset Link: http://www.cepii.fr/CEPII/en/bdd_modele/bdd_modele_item.asp?id=8 I ...
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How do economic sanctions work? How do they not create an arbitrage opportunity?

(Not sure if this should be on Politics.SE) This is something I've been thinking about since the Russian invasion of Ukraine. Many countries enacted sanctions on Russia in response. Let's say one of ...
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Are Internet and Internet companies considered to be an export for USA?

This question is in context of globalization and free trade. Does India get Internet as part of trade agreement with USA(who invented the technology)? Furthermore, Facebook is a Internet company, does ...
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India buying Russian Oil at discounted rate but why price hike?

I am hearing that the Indian government is buying Russian oil at an all time high on discounted rate . Technically, the price of petrol diesel should go down in India . However ,I've heard that price ...
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Index of international economic cooperation

What metric captures the historic level of economic cooperation between countries? Something that would capture: USA outsourcing its manufacturing to China (positive). Creation/expansion of European ...
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Asking for reference when using a shipping cost index as a shock?

The Baltic Dry Index (BDI) tracks the cost of shipping commodities, such as coal, iron ore, steel, cement, and grain, around the world. Information is available since 1744 when merchants and ships’ ...
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What does "U-shaped predictive pattern that peaks at 12-month forecast horizon" mean?

When reading the paper of Han 2020, I saw a sentence Finally, international evidence suggests that the BDI has an inverted U-shaped predictive pattern that peaks at 12-month forecast horizon. I am ...
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Why the author is quite loose when controlling in control variables for exchange rate regression?

I read a paper from (Han 2020) and from his equation (4) Δ s ...
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is the home bias in trade puzzle (border effects) still a puzzle?

in 1995 McCallum publish a paper that showed evidence of border effects that later was coined the home bias in trade puzzle and became one of the 6 major puzzles in international economics. I am just ...
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What does New Trade Theory say about the effect of trade on (income) inequality?

The Heckscher-Ohlin model and Stolper-Samuelson theorem make predictions about the effects of trade on the distribution of income within countries. What does New Trade Theory say about this?
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How do banks trust each other especially in cross-border situations?

Maybe my question is far too trivial for this community. But let's see. I don't have an economic background. I wonder how banks trust each other when money gets transferred from one bank to another ...
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What's a good measure of trade dependency between two countries that could be used for creating a reference class?

I've to make a simple forecast using reference class forecasting, the method they've shown in this video: https://youtu.be/jrU3o7wK23s (watch from 5:26 if you just want to see an example. That should ...
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Will business optimism in Ghana appreciate / depreciates Ghana's currency?

Text from the image: One of Ghana’s top trading partners is India. The currency in Ghana is the cedi and the currency in India is the rupee. Which of the following is a likely consequence of an ...
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Can you classify EU countries into developing and industrialised, or are they all industrialised?

The Heckscher-Ohline model and Stolper-Samuelson theorem state that the relation between inequality and international trade is moderated by the level of economic development. I am studying this ...
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What is a "full blocking" sanction on a bank?

In the wake of the Russian invasion of Ukraine, the United States announced a range of sanctions on Russian banks. These include (Source) "full blocking sanctions on VTB Bank, Russia’s second-...
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Dataset: Annual trade between countries

Where can I find data about the annual trade between countries? Say for example the annual exports from Pakistan to China and annual exports from China to Pakistan. Is WTO or UN or other international ...
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The gold standard and trade imbalances

I’ve recently come across a paper which states that trade imbalances during the gold standard caused outflows/inflows of gold from the country running the trade surplus/deficit thus securing balanced ...
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If a Spanish flagged fishing boat lands its catch in Thailand, does it appear as export in trade statistics?

I am trying to reconcile some data on the UN Comtrade regarding fresh and frozen fish exports. If a vessel with a Spanish flag (or Spanish owner, or both) operating out of Bangkok returns to port ...
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Most innovative business model for companies today

I am not sure if this is the right place to ask questions on this topic, but My class on International business has been asked to present a business plan that will work in the international market, ...

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