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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Analyse the influence of interior demand and trade on exports

I would like to have a primer on how the current slowdown of the German economy affects its partners, for instance France, Spain and Italy. More specifically, if it goes mainly through Germany's ...
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Did Trump make any concessions in his 'Phase 1' trade deal with China today? [on hold]

From what I've read, the US agreed to not proceed with a round of tariff increases on Chinese imports, and in exchange China agreed to buy several tens of billions of dollars more in agricultural ...
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Is there a way to adjust trade data between China and EU member countries for the Rotterdam effect?

Basically Eurostat trade data for individual EU member countries with China seems to have some substantial artefacts probably because most EU imports from China arrive in Dutch ports, even though ...
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How are trade deficits financed?

The usual answer is either "foreign debt" or "Foreign Direct Investment". But: Why does that make sense? And why wouldn't be financed otherwise like from importers taking out bank loans domestically ...
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Alternatives to avoid sanctions

Recently we saw that EU and Iran devised an instrument called INSTEX to avoid dealing in dollars and hence avoid US sanctions. Similar thing is being planned between India and Russia (regarding S-400 ...
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Historically has the “decoupling” of world trade from GDP not lead to (or deepened) a recession?

The ECB speaks (somewhat euphemistically, in my opinion) of a "decoupling" of world trade from "activity" (i.e. GDP) in Q1 2019: Historically, has it been the case that such a "decoupling" can last, ...
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Why is the Australian dollar, often viewed by traders as a proxy for the Chinese economy?

The Australian dollar, often viewed by traders as a proxy for the Chinese economy, gained 0.3 per cent against its US counterpart. From: https://www.ft.com/content/b18d1c56-cf75-11e9-b018-...
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Papers on International Trade and Environment

everyone. As a requirement to get my bachelor's in economics, I have to write a paper. The theme I picked is something along the lines of "the impact of environmental crimes and regulation on ...
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Who paid the bill for cheap Chinese exports?

We have all enjoyed the flow of cheap Chinese imported goods, whether in the shops, or online. The shipping costs from China have always seemed very low. Now I see this note: Got notification ...
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Where does overseas money from exports go?

I am a bit confused about foreign exchange reserves. I was reading this website (https://www.thebalance.com/foreign-exchange-reserves-3306258#targetText=Foreign%20exchange%20reserves%20are%20the,to%...
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Derivation of aggregate demand function for Monopolistic Competition (based on Combes et. al, 2008)

A specialized question for those, who excel in monopolistic competition and modern trade theories. I am interested in a derivation of an aggregate demand function for a model of monopolistic ...
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Why a Current Account deficit implies a Financial Account surplus [duplicate]

Every macro textbook out there states that if a country has a Current Account deficit, it must have a surplus in the Financial account, but I have not heard a convincing explanation. Imagine a ...
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Whats the math behind calculating the price of cryptocurrency through supply and demand?

"The value of currencies (including most popular cryptocurrencies) is set by a market. Price rises or falls until the supply and demand of the currency are equalized" Why exchange rates of national ...
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Why is trade deficit a good thing?

In general most economist agree that deficit is not a negative thing, but I have trouble understanding why For example if country A has 10\$ and country A runs trade deficit to B of 2\$ per year, ...
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Inflation leads to loss of gold reserves

I am reading Murray's Rothbard What has government done to our money? and this is his reasoning for inflation leading to loss of gold reserves to other countries (...
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Why did no US politician start the trade war a decade earlier with China or possibly the Globe if it is a good thing to do? [closed]

Why did no US politician start the trade war with China (or possibly the Globe) a decade earlier if it is a good thing to do? I am asking for a list of reasons for why not.
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Where to find information on tariffs when importing candles into the U.S.?

I am wondering where I can find information on tariffs when importing scented candles from States like China, India, Vietnam, Thailand into the U.S.? If the candles are soy wax and are packaged in ...
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Characterizing nations in global commodity market

I'm not an economist, so I'm looking for help making sure I'm not reinventing the wheel, or if I am, that it's at least round. I've been set the task of modeling a multi-step supply chain using UN ...
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Is the European Single Market a Free Trade Area?

The European Single Market is (obviously) a Single Market. Are Single Markets also free trade areas?
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Does the gravity model of trade apply equally for goods and services?

Does the gravity model of trade apply equally for goods and services? Naively it would seem that the more ephemeral services would be less impacted by it?
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By what mechanism do large economies affect world price with tariffs?

Large economies can affect world prices by applying import tariffs. Is this because they definitionally comprise a substantial portion of global consumption, and hence by shifting production ...
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Can tariffs be said to subsidise domestic industry?

If a state places a tariff on a good, domestic manufacturers of that good become more price-competitive in the domestic market at the expense of overseas suppliers. Could this be said to be a policy ...
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Is protectionism more suited to large economies?

Large economies like the US and China use tariffs as trade weapons while retaining competitiveness because they have the critical mass to encapsulate supply chains and avoid the cost of cross-border ...
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Related Literature about Exports

I am working on my master thesis, where I investigate the impact of the Russian embargo on Georgia's exports. I have already identified my dependent variable, as well as the variables of interest. ...
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Chinese tarriffs (pre-tradewar)

I am trying to understand to what degree tariffs (or other restrictions like quotas) were the cause of the trade imbalances between the US and China. One might imagine that it was simply a matter of ...
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What are the hot topics (sub-fields) in the International-trade to pursue for the research work?

I am interested in trade economics. Suggest me some hot topics and authors in the field. Different dimensions of trade economics. Use of game theory, networks etc.
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Do countries have an obligation to match their savings and consumption rate with that of the U.S.?

https://www.barrons.com/articles/europe-is-now-a-bigger-trade-villain-than-china-51558118723 The above articles state that trade imbalances are a bad thing and that if a government doesn't enact ...
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Are there economic models that predict (only) a medium/long-term negative effect of protectionism?

Going by some ECB models/estimates from last year, protectionism would result in negative consequences pretty fast, e.g. For illustration, I will use the results of simulations carried out by ECB ...
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Are there political economy models that include a “majority capture” of (protectionist) trade policy?

A highly cited model of protectionism is the "protection for sale" model or Grossman and Helpman. (For an [updated] evaluation of that model see for instance the Advanced International Trade textbook ...
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International emissions trading

As far as I have understood emission right certificates are some kind of currency. Each company may emit as much of say CO2 as its certificates allow. Certificates may be traded, i.e. bought and sold. ...
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why US don't like China trade deficit? [duplicate]

Because of the dollar, US basically have unlimited credit. US could simple print money for good. Why US don't like China trade deficit? If US is a person, and the person could use paper to exchange ...
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Is it unreasonable to expect a country with a large public deficit and the world's reserve currency to not run trade deficits with other countries?

I have heard that country trade deficits are primarily driven by excessive consumer spending and large public deficits, and that having the world's reserve currency means that you will have to run ...
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In practice, are retaliatory tariffs the first step (or among the first steps) in the WTO dispute resolution process?

In theory, retaliatory tariffs probably aren't first step in the WTO dispute resolution process. Instead, the dispute is supposed to go through consultations, which take some 6.6-months on average, ...
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Is IP theft more severe in China than in other developing countries?

Why is the media making such a big deal over IP theft in China if it's not more severe than in other developing countries? So is it the case that IP theft is more severe in China than in other ...
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According to the U.S., what constitutes as fair subsidies?

The U.S. asked China to do this during the trade negotiations: China immediately will cease providing market-distorting subsidies and other types of government support that can contribute to the ...
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Are there agreements in place between the EU and the US to facilitate trade in services?

What agreements are in place between the EU and the US to facilitate trade in services?
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Are tariffs ever levied on services and does MFN apply?

I am interested in tariffs on services. Are tariffs ever levied on services and do most-favoured nation rules apply as they do with goods?
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How is trade in services conducted under the WTO in the absence of the Doha conclusion?

The Doha round of negotiations for the WTO had a focus on services, but that round has not been concluded. Does that mean that trade in services between trading partners without a preferential trade ...
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Definition of Heckscher-Ohlin free trade equilibrium

Does anyone know the mathematical definition of the Heckscher-Ohlin free trade equilibrium? Using real analysis methods!
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Discrepancy of GDP and International Transaction Releases for Exports

The Bureau of Economic Analysis ("BEA") provides consolidated data from several different government agencies. Currently they provide exports under both a Gross Domestic Product ("GDP") release as ...
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Would PPP adjustments between countries be irrelevant if all countries had the same relative prices?

I'm trying to understand the relationship, if any, between the fact that countries have different relative prices (e.g. different 'food price-to-general consumer prices' ratios) impacts the need for ...
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GDP per capita and trade relationship

There's a lot of literature describing the relationship between growth and trade, but I'm not sure what conclusions I can draw from GDP per capita (specifically) and trade in one particular year for ...
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Where can I find a complete list of goods affected by NAFTA?

I am looking for the list of goods that NAFTA, preferably in the format of what is subject to tariff reduction. I have found a few potential leads, but none seem to be exhaustive: https://www....
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A valid argument against free trade?

Recently I read Bertrand Russell's Political Ideals (1917). Although he expresses strong left-wing ideals there, he supports free trade and criticizes protectionism. It seems that not any left-wing ...
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“Increasing trade barriers causes a country’s currency to appreciate”?

Mishkin (2016, p. 476) writes: Barriers to free trade such as tariffs (taxes on imported goods) and quotas (restrictions on the quantity of foreign goods that can be imported) can affect the ...
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The Relationship Between Public and Private Debt

In this video, David Graeber says that if the public sector goes into a surplus, then the private sector must go into a deficit, in equivalent proportion. Is this true? Wouldn't this be complicated by ...
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Net capital outflow = Net exports (Net capital imports)?

They say Net Capital Outflow equals to Net Exports(S-I=NX). And they say also that Net Exports is nothing but the Net Capital Imports. Then how come "Net Capital Imports" is same with the "Net Capital ...
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Question about tariffs in Henry Hazlitt's Economics in One lesson

I've been reading Henry Hazlitt's Economics in One Lesson and he said something about free trade and tariffs that I don't quite understand. He uses the example of buying cheaper English sweaters ...
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Is an EU single currency still a trade advantage in 2019?

When the single currency was planned, there was no internet and there all currency exchange was manual. Today the web can automatically convert prices using multiplication of the numbers in the ...
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why doesn't every country scale up the prices to the international level?

I live in an Asian country in which the average monthly salary is maybe 300-400 dollars but things (apart from exported goods like laptops or smartphones) are reasonably cheap compared to their price ...