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
1answer
252 views

How can foreign protectionism affect local FDI

I am citing an article here: In a speech at the G-20 in Istanbul, TİM’s Mehmet Büyükekşi said, “Protectionism is increasing in every market around the world and it is affecting not only Turkish ...
5
votes
1answer
112 views

US trade outpaces GDP

I notice that US exports doubled between 2000 and 2011, imports also increasing greatly, but GDP only grew by 20%. Thus, trade in the United States seems to have grown substantially faster than ...
1
vote
0answers
38 views

How does Global Saving Glut flood the market with cash?

When I was browsing the internet last night, I read a couple articles on the Global Saving Glut. And many has ascribed it to be a cause of US financial crsis. My question is how so? The articles argue ...
3
votes
2answers
12k views

Why does the Balance of Payments have to (more or less) equal zero

It seems to me that the non-reversible transactions included in the current account, and the reversible transactions included in the capital and financial account, are unrelated, and should therefore ...
8
votes
5answers
22k views

Why are imports subtracted from GDP?

GDP is a measure of a country's production. $$GDP = C + I + G + X_n$$ $C$ = Consumer Consumption $I$ = Gross Investment $G$ = Government Expenditures $X_n$ = Exports - Imports Exports are what we ...
1
vote
1answer
48 views

Yuan to be a reserve currency, IMF is considering [closed]

If yuan becomes a reserve currency, can we expect the petrodollars to be swapped with petroyuans given china's ever increasing mammoth demand for energy resources?
1
vote
3answers
593 views

Relationship between trade deficit and borrowing

I have seen lots of essays saying that trade deficit means the nation needs foreign funds to finance their imports. In other words, they need to borrow from the foreigners. However, it sounds very ...
3
votes
1answer
221 views

Gravity Equation Interpretation

I have a question about the gravity equation. In the Feenstra textbook, on page 144, it is stated that In the monopolistic competition model [...] the countries are completely specialized in ...
2
votes
1answer
2k views

Difference between 'ideal variety' and 'love of variety' - International trade

What really is the difference between the "ideal variety" (Lancaster) of a differentiated product approach and the "love of variety" (Dixit and Stiglitz) approach?
1
vote
0answers
26 views

Want to read more about medical intellectual property and the TPP

I'm trying to find information about the current state of medical IP protection in countries willing to sign the TPP and the change they will go trough and maybe some impact analysis. I was hoping ...
3
votes
1answer
46 views

What will I see of the €545 from TTIP?

According to this TTIP paper, a European family of four will see their annual disposable income increase by €545 on average: These gains can also be translated into household disposable income. ...
0
votes
1answer
76 views
1
vote
1answer
150 views

Concept of absolute advantage

Can someone please explain the concept of absolute advantage with an example? I know it has to do with the fact that a nation should produce a commodity that is cheap relative to other commodities but ...
1
vote
0answers
86 views

how can devaluation of a nation's currency lead to increase in government expenditure, hence facilitating economic growth

how can devaluation of a nation's currency lead to increase in government expenditure, hence facilitating economic growth. I was reading through a textbook and saw that the devaluation of a nation's ...
7
votes
2answers
494 views

Ricardo's theory of comparative advantage

The aim of this question is to better explore the mathematical economics model behind Ricardo's theory of comparative advantage and the claims that can be made based on this model. This seems ...
4
votes
2answers
2k views

Why does a currency devaluation make a country more attractive for foreign direct investment?

The author of this article says "[the devaluation of the yuan] may also have impact on [foreign direct investment (FDI)] if China becomes a more attractive destination vis-a-vis India". Why is this? ...
6
votes
2answers
2k views

Ricardo's theory of comparative advantage for many countries

In textbooks on economics the Ricardo theory of comparative advantages is explained on the example of two countries with two goods. I suppose, there must be generalizations of Ricardo's theory for ...
3
votes
1answer
58 views

Data: Trade imbalance at the County level in the US

I am looking for some source of data on trade imbalance at a county level in the US, preferably for years 1990-2007. Does anyone know if such data can be publicly available? Or any paper that have ...
1
vote
1answer
60 views

International shipping services count as exports?

A Greek ship owner transports mouse traps from Albania to Japan, making every year ten million Euro in revenue and one million Euro in profits. The total value of the mouse traps he transports every ...
11
votes
5answers
20k views

How does a country devalue its currency?

I recently read an article in the New York Times that talked about China devaluing its currency (which I believe is held to a peg against the US Dollar). My question is: specifically what tools does a ...
4
votes
1answer
149 views

How much of the Greece's public debt is created by its trade deficit?

How much of the Greece trade deficit reflects into it's public debt? Each year, Greece is importing about two times as much as it's exporting. In some years, even three times more. How much of that is ...
2
votes
1answer
42 views

UK trade with biggest partners, by year

I am working at lists like these, filling them with numbers about UK's trade with it's biggest partners. The problem is, I can't find such data for the years before 2010. I know that the institution (...
3
votes
1answer
68 views

How does one interpret the usda wholesale market price reports?

For example: http://www.ams.usda.gov/mnreports/nx_fv010.txt The data for mangos is : MANGOES: MARKET STEADY. flats 1 layer HT Francis (Francine) 9s 11.00 10s 12.00 12s 10.00-12.00 MX Keitt 7s 5.00-...
2
votes
1answer
47 views

Competition between utilities like ports

I was reading about the frequent congestion in US ports and the resulting effect on the US economy. I feel there are unique features to this setting. When ports face congestion, they levy charges, and ...
6
votes
1answer
495 views

How does US (its economy, banks, industry) profit from dollar being the “standard currency”?

How does US (its economy, banks, industry, "finance industry") profit from dollar being the "standard currency"? I am not seeking "ideological" explanations, but explanations of the mechanisms ...
9
votes
1answer
198 views

How does a bank convert one currency to another?

Say for example I sell ZAR and buy USD. What happens behind the scenes so that the local ZAR bank is able to deposit USD into my account? Does the bank require some sort of USD cash reserve? How do ...
3
votes
1answer
129 views

Questions regarding foreign exchange online trading

I am currently studying economics in college and taking course Macroeconomics and International Finance which covers foreign exchange market topic. The class is very crowded since there are more than ...
9
votes
2answers
169 views

Are there any datasets for protectionism?

Are there any data sources or variables that measure how protectionist a country is? If so, what are they?
2
votes
0answers
3k views

Correct Calculation of Balassa Revealed Comparative Advantage (with full trade data)

The typical approach to computing RCA (Revealed Comparative Advantage) is the Balassa definition: $RCA=\frac{\frac{X_cp}{\sum_{p=1}^{P}{X_cp}}}{\frac{\sum_{c=1}^{C}{X_cp}}{\sum_{c=1,p=1}^{C,P}{X_cp}}}...
5
votes
3answers
226 views

What does trade deficit really mean?

I watched a video about how if America imports USD 1m worth of goods but only exports USD 600k worth of goods, there is a USD 400k debt to other countries if the other country allows this deficit. US ...
2
votes
2answers
6k views

What does perfectly inelastic demand imply about gains from trade and domestic consumers?

Source: p 191, Question 9.7b, 9.7c, Principles of Microeconomics, 7 Ed, 2014, by NG Mankiw Consider a country that imports a good. True or false. Explain your answer. b) “If demand is perfectly ...
1
vote
0answers
41 views

Deriving Marginal Product For Hecksher-Ohlin

I'm using the second edition of applied international trade by Bowen and for the HO model, the marginal product with respect to capital ought to be the first term of the final answer (as given in the ...
4
votes
1answer
88 views

Why do there seem to be relatively few imports from India into the United States?

In the United States I see significant quantities of manufactured good imports made in Taiwan, Japan, China and Korea. However, there seem to be relatively few imports from India. Why is this?
0
votes
0answers
76 views

How is Comparative Advantage a superset of Absolute Advantage? [duplicate]

Source: 'The Theory of Comparative Advantage - Overview', Prof Steven M. Suranovic Advantageous trade based on comparative advantage, then, covers a larger set of circumstances while still ...
3
votes
3answers
19k views

Difference between merchandise trade and trade in goods?

What is the difference between merchandise trade and trade in goods? Are they the same? If so, would total trade be just trade in goods + trade in services, aka merchandise trade + trade in services?
0
votes
1answer
50 views

How does an increase in domestic interest rate increase capital inflow?

What I have typed in the title is all I want to know.
2
votes
1answer
707 views

Why do rich and poor countries trade in different goods and why do rich countries trade in similar goods with other rich countries?

I think that differences in climate is one key factor but I think it could be explained by David Ricardo's theory on international trade differences???
0
votes
2answers
21k views

What is the difference between a free trade agreement and a preferential trade agreement?

What is the difference between a free trade agreement and a preferential trade agreement? What is the difference between a free trade area and a free trade agreement?
8
votes
1answer
468 views

Generalization of the Heckscher-Ohlin Model

The Heckscher-Ohlin Model is normally presented for the case of 2 countries, 2 factors of production and 2 traded goods, leading to statements that, subject to free trade and various other assumptions:...
3
votes
1answer
67 views

Do German Goverment bonds usually include (or included) a condition that the debt will not be serviced in case of trade imbalance?

Today the Spiegel ran an article on a proposal to end the Euro Debt Crisis. That article made the claim given in the title Syriza will eine sogenannte Wachstumsklausel für jene Schulden einführen, ...
11
votes
2answers
378 views

Are there any states that don't have debt?

I've not been able to find any states that don't have debt to other states. This, to me at least, seems really strange. Are there any nation states that are not in debt to other states, if so which ...
3
votes
2answers
93 views

International date line

What if international date line being shifted to Atlas Ocean? Most of trade partners will have different date, States and all America continents will enter day first etc. So what can be coincidence of ...
3
votes
1answer
2k views

What are some real-world examples of the different types of trading blocs?

The subsequent types of trading blocs have the following definitions: Free Trade Area -- free trade among members Customs Union -- free trade among members and common external tariff Common Market -- ...
14
votes
1answer
630 views

Have there been instances where economists have advocated a trade embargo?

Due to Comparative Advantage, it is generally accepted among economists that free-trade is the best policy for a country and increases the standard of living for the citizens of that country and the ...
3
votes
0answers
144 views

With OPEC driving the prices of oil down, can American producers simply store oil produced at higher cost to sell later? [closed]

I have been wondering. With OPEC driving down the price of oil in order to stifle the growth of the American oil industry, what can we do about it? More specifically, why don't these oil producers ...
3
votes
1answer
97 views

Long term trade data request

Can anyone recommend a resource for very long term trade data? (1500-2014). I have looked and found bits and pieces here and there but haven't come across any single data-set covering all of it. I am ...
5
votes
1answer
1k views

Does immiserizing growth exist outside of theory?

For a course in international trade, our professor touched on the idea of immiserizering growth. He emphasized that immiserizing growth was a theoretical outcome from specialization of trade and did ...
3
votes
3answers
72 views

Can anyone recommend a resource for monthly trade data for Mexico from before 2010?

Can anyone point me to a resource where I can find monthly series data (specifically for 2003-2013) on Mexico's imports and exports in nominal (current) Mexican Pesos (MEP) including broken down by ...

1 2 3 4 5
6