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.

Filter by
Sorted by
Tagged with
0 votes
0 answers
52 views

How to calculate level of utility in a autarky economy and open economy? [closed]

Our class was assigned this question before the start of a course to show us what kind of questions we would be dealing with in the course. He didn't give any instructions and I wasn't able to find ...
user avatar
1 vote
0 answers
9 views

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 ...
user avatar
12 votes
6 answers
3k views

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 ...
user avatar
  • 1,166
0 votes
0 answers
14 views

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 ...
user avatar
  • 131
0 votes
1 answer
40 views

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 ...
user avatar
1 vote
0 answers
14 views

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 ...
user avatar
2 votes
1 answer
32 views

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’ ...
user avatar
0 votes
0 answers
7 views

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 ...
user avatar
0 votes
1 answer
32 views

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 ...
user avatar
2 votes
0 answers
22 views

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 ...
user avatar
0 votes
0 answers
21 views

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?
user avatar
0 votes
2 answers
48 views

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 ...
user avatar
  • 101
0 votes
0 answers
12 views

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 ...
user avatar
0 votes
0 answers
16 views

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 ...
user avatar
1 vote
1 answer
23 views

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 ...
user avatar
0 votes
0 answers
14 views

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-...
user avatar
1 vote
3 answers
20 views

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 ...
user avatar
  • 952
0 votes
1 answer
32 views

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 ...
user avatar
  • 157
0 votes
0 answers
6 views

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 ...
user avatar
-1 votes
1 answer
22 views

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, ...
user avatar
1 vote
0 answers
62 views

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 (...
user avatar
  • 713
1 vote
0 answers
27 views

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 ...
user avatar
0 votes
0 answers
32 views

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 ...
user avatar
0 votes
0 answers
26 views

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 ...
user avatar
0 votes
0 answers
21 views

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 ...
user avatar
4 votes
1 answer
48 views

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 ...
user avatar
  • 26.2k
1 vote
1 answer
56 views

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 ...
user avatar
  • 157
1 vote
0 answers
53 views

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 ...
user avatar
  • 113
0 votes
0 answers
63 views

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 ...
user avatar
  • 111
0 votes
0 answers
23 views

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 ...
user avatar
0 votes
0 answers
15 views

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) ...
user avatar
  • 107
0 votes
0 answers
8 views

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 ...
user avatar
  • 129
2 votes
0 answers
43 views

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 ...
user avatar
0 votes
1 answer
109 views

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 $A$ ...
user avatar
1 vote
0 answers
26 views

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 ...
user avatar
  • 437
5 votes
1 answer
72 views

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 ...
user avatar
  • 2,099
-1 votes
2 answers
39 views

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 ...
user avatar
  • 107
2 votes
1 answer
50 views

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 ...
user avatar
0 votes
0 answers
6 views

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'...
user avatar
  • 11
0 votes
0 answers
15 views

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 ...
user avatar
  • 713
2 votes
0 answers
7 views

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? ...
user avatar
1 vote
0 answers
13 views

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 ...
user avatar
0 votes
0 answers
24 views

How many million metric tonnes of cocoa butter were produced in 2020?

I'm doing some research on global ingredient production. I'm having trouble finding estimates on global cocoa butter production in 2020. Here's the problem: Statistics on how much cocoa is produced ...
user avatar
0 votes
1 answer
32 views

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 ...
user avatar
0 votes
1 answer
38 views

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 ...
user avatar
  • 111
4 votes
1 answer
198 views

Krugman 1980 AER, Deriving Equation 14

I have been trying to derive equation 14 from Paul Krugman's 1980 AER paper. I keep getting a different result, and further, I find that equation 14 from the paper does not balance payments when I ...
user avatar
0 votes
0 answers
19 views

How has the Chinese freight industry developed during last year?

The last year has been filled with so many unfamiliar circumstances such as Covid-19, and now with the rising tensions as well, I'm wondering how the Chinese freight industry is developing during ...
user avatar
1 vote
1 answer
35 views

Proximity-concentration hypothesis: homogeneous firms and symmetric countries

Hi everyone I am running into a stone wall and don't seem to be able to solve this, can someone show me the steps how I can insert 1 into 2 and get 3. $B=\frac{f_E+f_D}{φ^{(σ−1)}*(1+τ^{(1-σ)})}$ $π =...
user avatar
  • 13
1 vote
0 answers
24 views

Does a high current account deficit devalue the national currency?

I've been reading some materials about Belarus's 2011 financial crisis, and a common thread among them is this: Belarus had had a rapidly growing current account deficit, and in 2011 it came to a head ...
user avatar
1 vote
1 answer
46 views

Why has China's integration into the global economy caused it to slow it's output?

In the following passage, what does it mean to be integrated into the economy and why does this mean that now China and India are integrated into the economy that their output has slowed down? In the ...
user avatar
  • 115

1
2 3 4 5
8