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 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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Does Russia export anything that isn't widely available elsewhere?

Some countries produce items for which there is no easy substitute. For example Taiwan produces 53% of the world's semiconductors. Is there any product(s)/service(s) for which Russia is a monopolist (...
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Is foreign aid loans?

I see that America is giving tons of foreign aids. Is that loans?? Or just money without expecting any returns?? Help me understand the loans given to other countries and aids.Also during military ...
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Quantity of production in autarky?

We've been given the example of a country that produces two goods: shirts and speakers. The country has 4000 units of labor - it takes two units of labor to make speakers and four units of labor to ...
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Did weapons export make america powerful?

As per the reuters report america made 130 billions from weapons exportIts the revenue so i can understand that the profits will be much lower. For a county like America which spend trillions in ...
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Why do eBay items I purchase from China sometimes arrived shipped from European third countries

I live in Canada and semi-regularly buy small items on ebay from Chinese sellers with free shipping. When I have received the items they sometimes have been shipped from European countries like ...
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Homothetic preferences for international trade

In international trade class, we assume homothetic preferences for every country, and each country has an endowment. Why do we assume homothetic preferences? Is this because we see (from data) that ...
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How does a trade deficit affect GDP?

How would an increase in the trade deficit affect GDP? As per the majority of sources I’ve read such as Investopedia, they claim that GDP would decrease due to a decrease in the NX component of the ...
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When a country is banned from using SWIFT, what alternative ways do banks within that country still have to transfer or receive money from abroad?

If Russia invades Ukraine one of the sanctions that the west might impose is banning the banks in Russia from the SWIFT network. I've watched a short video from a financial news channel that explains ...
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How is North Korea paying for all its imports?

As far back as the 1980s it seems that North Korea has imported more than it exported. Given that they weren’t exactly a wealthy country back then, and as most countries stopped debt financing ...
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Nominal vs Real value of a currency

I was wondering what is usually the relationship between the nominal value, NEER, and the real value of a currency REER? And how to interpret the REER of a currency, >100 overvalued < 100 ...
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Is there any situations where real exchange rate positively impacts on national imports?

I'm working on a gravity model analysing the factors that affect national imports, and the results showed that the real exchange rate (real exchange rate between local currency and foreign currency) ...
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Balance of payment-current account deficit needs capital&financial account surplus

I am searching for the reason why does current account deficits requires a capital&financial account surplus and all that I've found out is something like, If US import much more goods and ...
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Mathematical proof of dynamic stability of equilibrium in international trade, with quantity adjustment

I am studying dynamic stability of neoclassical international equilibrium given in Giancarlo Gandolfo Economic Dynamics, but I am failing to understand an intermediate step, namely linearization of ...
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In a box diagram, why does efficiency locus lie on one side of the diagonal, if both sectors haves constant returns to scale function?

The following is what I understand, so far. If we measure labour in the $x$-axis and capital in the $y$-axis, the slope of diagonal of the box is the capital-labour ratio $K/L$ in the economy. Let $A$ ...
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Lectures notes on international trade

do you have any lecture notes covering the theories of international trade (Ricardian models, HOS, Melitz...)? I have a master in quantitative econ so I'd be happy to have both basic references and ...
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The Equilibrium Wage in Ricardian Trade Model

I am learning the Ricardian trade model by reading Eaton & Kortum 2012 JEP. The equilibrium is easy to understand when there are finite goods, as shown in their Figure 1. However, they then ...
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How can I add distance variable to panel data?

I'm working on a gravity model with a panel data. However, the distance variable for this model is a time-fixed effect so it doesn't seem possible to run the model with it. What can I do to add this ...
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Why is there such a big difference of purchasing power toward Coca-Cola between Euro in France and USD in USA, comparing to Big-Mac?

I have an assignment that requires me to pick an item and use it to create my own price level index, similar to Big-Mac index. In March 2021, the price of 0.5 litre Coca-Cola in France was 0.97 Euro ...
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Foreign direct investment data

Does anyone know where to get free cross country, country to country foreign direct investment and production chains data for a cross section analysis? I ve looked at the world Bank database, couldn'...
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Statistics on Mexican illicit drug exports by country?

Estimates of the size of the total Mexican illicit drug export markets are somewhere around USD 200-650 billion per annum, depending on the source: \$426-652 billion per year \$500 billion \$200-300 ...
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National Production/Consumption Data

I've found https://comtrade.un.org/ for country-to-country product import/export data. Is there an equivalent data set for self-consumption, ideally harmonized with the UN's H6 classification system? ...
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Are there intermodal tramp freight carriers?

I'm working on a fictional system where shippers -- companies with bulk goods to ship -- post contracts stating an origin, destination, and number of cargo containers. Carriers -- whether by air, land ...
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What are some negative/positive aspects from globalization in regard to developed countries?

I have read many articles on how globalization is helping developing countries, as more and more companies from developed countries have been moving their production oversees. However, as hard as I ...
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India's exports and the rupee

There are several analyst asserting that a strong rupee would dampen India's exports, for example below article. Given that circa 80% of indian exports are invoiced in USD, why a strong local currency ...
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