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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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1answer
30 views

Where can I find data on bilateral trade?

Where can I find data on bilateral trade between countries in the world over time? I heard that only International Trade Center has access to this data, but I guess there's a public source. I tried ...
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Pascali (2015) Natural Experiment

In The Wind of Change: Maritime Technology, Trade and Economic Development (2015), Pascali estimates various effects on freight rates (i.e. the cost of transport) on outcomes such as trade volumes and ...
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Trade in services between the US and China

International trade consists of both goods and services, yet in the case of US-China trade for some reason both the media and official government releases only seem to quote the goods component. So ...
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838 views

Why are trade deficits considered unfair?

President Trump has accused Germany and China of unfair trading practices over trade deficits. What is unfair about trade deficits? This may be economics 101, but in my naive eyes every time a ...
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Why do large financial institutions make international transactions in digital currency?

I've heard that blockchain technology has been used extensively by financial institutions when making international transactions to eachother, with speed and transparency and cryptographic security ...
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143 views

Heckscher-Ohlin with different technologies

Consider two countries: Home and Foreign that produce two goods, cars and wheat. The production technologies are such that: $q_{c} = K_{c}^{0.5} L_{c}^{0.5}$ and $q_{w} = 0.5 K_{w}^{0.5}L_{w}^{0.5}$ ...
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Import/export by sector/country data source

I am looking for import/exports data by sector and country, with partner countries. The goal is to get a picture of overall imports/exports to/from a specific country with (possibly) all of its ...
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1answer
33 views

Categorisation of Harmonised System codes for economic analysis

I work a lot with Harmonised System Codes (https://en.wikipedia.org/wiki/Harmonized_System). In a nutshell, the Harmonised System (HS) provides a way to record all goods based trade in and out of a ...
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2answers
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Why is Algeria the #2 milk powder importer in the world?

Can anyone explain to me why Algeria, a country of 40 million people is importing almost half as much milk powder as China? Turkey has 80 million people yet it apparently doesn't import milk powder, ...
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1answer
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Which currency do we consider when talking about trade balance ?

The Marshall Lerner condition and the J curve made sense until one day I noticed that to make sense of all of this , we considered two different currencies. I was told for e.g. in the short run, ...
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Ricardian Trade Model [duplicate]

This is an example taken from Krugman's book: Consider the case where the international relative price (of cloth in terms of wine) is $\frac{p_{c}}{p_{w}} = \frac{a_{lc}}{a_{lw}}$. Where $a_{lc}$ ...
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When finding targets in a trade war, does the goods balance or trade balance matter more?

By most measures, most people who look at trade balance, but it might include a good chunk of services imports/exports who might not be as readily subjected to tariffs.
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Recession and Net Export

When a country's economy is currently in recession (or has entered a recession), will the net export increase or decrease? What will happen to the major trade partner's net export (will it be the ...
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Leontief's Paradox and the amount of capital

Leontief (1953) showed that US exports in 1947 embodied considerably less capital and somewhat more labor than would be required for domestic production of competitive imports. \$2.55 million worth of ...
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1answer
32 views

Terms definition in Balance of Payment

I have problems in distinguishing among terms in the Balance of Payment / the international balance sheet of a nation. As far as I know, on Assets and Liabilities sides of BPM, there are Portfolio ...
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1answer
42 views

Economic impacts of Migration on the Labour Market

Many natives don't prefer foreigners taking their jobs, is it actually a bad thing for the countries economy?
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What type of protectionist measure is this?

I am currently studying an economics case study on protectionist measures but came across a measure which I have not heard off before, one which research has not shed any light on. The case study ...
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2answers
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How can China shield its public from the effects of a trade war?

I found an interesting read in the NYTimes today. It read: The Chinese government also has much greater control over the economy, allowing it to shield the public from job cuts or factory closings ...
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4answers
367 views

Why is it a problem if China starts “dumping” US Treasuries? What does it mean to be dumping?

China has 1.2 trillion dollars worth of us treasuries. Why would it be a problem for them to get rid of all of them? Why would that destabilize the US economy?
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Does Russia Prevent Gold Exports?

The Sirius Report tweets: Surprises me how anyone imagines that #Russia only has 1800+ tons. Just look at the fact that they never export #gold production and what they have annually produce for ...
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1answer
364 views

What are production limiting programmes?

Under WTO domestic support norms, blue box measures include: Direct payments under production limiting programmes (often referred to as “Blue Box” measures) are exempt from commitments if such ...
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512 views

Abolishing all tariffs without reciprocity

Is a policy of abolishing tariffs without expecting other countries do so a sustainable economic policy? What are the arguments for or against it? Fear of imports is very common among people. Money ...
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3answers
454 views

What are some critiques to the principle of comparative advantage?

The principle of comparative advantage says that, in a free market, any agent should produce more of the goods for which they have a comparative advantage. The model is usually applied to advocate for ...
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0answers
129 views

How can the “Share of merchandise imports at current PPPs” be negative?

I'm looking at the Penn World Table 9.0 data, and find that the "Share of merchandise imports at current PPPs" (csh_m) can be negative. For example, ...
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4answers
106 views

Value vs. Price and its relation to tariffs

I’m naturally against tariffs as they impede on free trade, and end up hurting the consumer by inadvertently becoming a tax on imports as well as raising the cost of goods. So I'm trying to challenge ...
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2answers
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Is there merit to the argument of reducing the US trade deficit

Is the merit to the argument of reducing the US trade deficit and the inequitable tariff regime imposed by its trading partners that works unfavorably towards the US. Does this give merit to the ...
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2answers
290 views

What causes the US media obsession with tariffs; The EU and others have charged tariffs on US stuff forever?

The EU has about a 50% tariff on US beef and higher tariffs on US liquor (typical EU bureaucracy has many categories and quotas, so a single number is impossible). So why is a relatively low US tariff ...
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Exports: How can a small amount of export make really high income

I'm currently researching for a school project about Thailand. I found the wonderful Observatory of Economic Complexity Website. There are two visualizations I don't quite understand: https://atlas....
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Eaton & Kortum - Technology, Geography, and Trade - How theta impacts geographical barrier

The paper says: Smaller $\theta$ implies more heterogeneity, and thus larger comparative advantage, and hence stronger force for trade relative to resistance $d_{ni}$. Would it be correct to ...
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1answer
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Does Chile have a government owned Export Import bank like the US or India?

If not, what type of trade financing do Chilean exporters or importers get? Is it all from private banks and insurers?
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Does trade lead to economic growth in the most basic models of trade?

In the standard models of trade, such as Ricardo or Hecksher-Ohlin, I know that openness to trade will lead to increased consumption as (roughly) the consumption possibility frontier expands beyond ...
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1answer
38 views

Ban an import that is exported

Norway intends to shutdown the fur farming industry over the next 5+ years. In the meantime, can Norway ban imports and sales of fur without violating WTO regulation? Are there alternative strategies?...
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How should I define most of the import or export when doing analysis of the import and export of a country?

let's say I'm analyzing the import of France and it is 100 billion dollars and is divide between 200 countries. how should I gauge where has most of the import come from? top 10? 90 percent of the ...
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1answer
59 views

Why U.S Import from China is a big deal?

Economics books often quotes import as a borrowing Why it is borrowing since the importer pays to exporter for the goods they have received. Lets say, a US company is importing apparel from China.
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1answer
154 views

Math in Melitz and Ottaviano (2008)

I am reading Melitz and Ottaviano (2008), but I find it hard to understand some math in the model. The preference is given by : , which implies a demand function: Then the paper says the "inverse ...
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1answer
160 views

How can a RTA have a trade imbalance with itself?

I'm looking at ASEAN data for 2015. It seems the intra-ASEAN exports are 305bn USD while the intra-ASEAN imports are only 238 billion USD. Am I misreading the statistics or is it actually possible for ...
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Volume of trade covered by regional trade agreements

Is anyone aware of statistics about the total volume of trade that happens under regional trade agreements (RTAs)? It's easy to find figures for the number of agreements, but not so easy for their ...
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23 views

Where UK finds money to sustain its negative trading balance?

UK had a negative trading balance for the last 20 years. Where does it find money to finance it? Is such situation sustainable?
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120 views

Question on an argument in “The Myth of Absolute Advantage”

Brandis (1967) argues that "absolute advantage does not exist" and "that it is a logical impossibility". (See also comment, comment, reply.) My question here is very narrow and specific. I do not ...
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Why division of labor or specialization boosts productivity

The three reasons given by Adam Smith were: Increased dexterity. Saving of the time which is commonly lost in passing from one species of work to another. The invention of a great number of machines ...
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1answer
126 views

Solutions for the de-dollarization of the Democratic Republic of Congo

While reading this article, I was wondering about the policies the DRC's government could employ to make the congolese franc appreciate. To appreciate the currency, the DRC by decreased investment in ...
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1answer
371 views

What's the economic effect of a country reducing its imports?

If a country enacts a program that successfully reduces its imports, eg: A 'buy local' advertising campaign A program of training mechanics to maintain older cars, rather than buying new imports An ...
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1answer
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How could the economic cost of the world not speaking the same language be estimated?

While languages are fun and add color and flair to cultures and make the world a more interesting place, they also have a cost. Beyond the monetary costs of translation/editing/proofreading, ...
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2answers
125 views

Why are imported Chinese products in India cheaper than those locally produced?

Why an imported Chinese product in India is cheaper compared to a locally manufactured item?
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Under what conditions are tariffs or export subsidies expansionary?

Charles Kindleberger writes in the introduction to /The World in Depression/: The imposition of tariffs should be expansionary for the importing country, if contractive for the countries losing ...
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1answer
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How is wealth created? [duplicate]

The production of 'goods and services' and 'innovation' is the usual answer. I feel that doesn't really answer the question. These things can be traded for wealth but they don't generate new wealth. ...
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What exactly is the argument for Free Trade?

There's been a lot of talk about Free Trade. People seem to either know nothing about it, or they seem to either support or oppose it with such passion that if you didn't know any better, you would ...
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advice on econometric or methodological approach of my master thesis

For my master thesis, I am studying the effect of input trade liberalizaion on Research and development decision depending on firms' financial constraints in India. I have a firm level database from ...
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2answers
524 views

How does trading create value? [closed]

Let's say village A has all the something S they need, and village B has all the something T they need. The properties of S outweigh the benefits of T. Village A and village B start to trade S for T. ...
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3answers
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What's good about both exports and imports of a country rising at the same time?

I recently came across a question that asks, if exports in a country rises by USD10 billion and imports rises by USD10 billion, what's good about both of these? To my understanding, the GDP wouldn't ...