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Interlude: The Airbus vs. Boeing Trans-Atlantic Trade and Subsidy Battle
Published in Philip K. Lawrence, David W. Thornton, Deep Stall, 2017
Philip K. Lawrence, David W. Thornton
According to the now-dominant neo-classical (liberal) school of economics the ideal structure for world trade is one based on open and free markets. Free trade is based on the efficiency maximising principle of comparative advantage. The logic of comparative advantage is disarmingly simple: a country should produce and export goods which it can manufacture more efficiently than its trading rivals; alternatively it should import goods produced with greater efficiency by other countries. From a liberal point of view the aim is to secure an international division of labour based on economic efficiency. Because of factor endowments in capital, labour and land, particular countries will have a 'natural' advantage in some economic sectors which they should exploit.
The effects of seaport efficiency on trade performance in Africa
Published in Maritime Policy & Management, 2022
Enock Kojo Ayesu, Daniel Sakyi, Samuel Tawiah Baidoo
Theoretically, the effect of seaport efficiency on trade performance could be viewed from two perspectives: the Heckscher Ohlin (H-O) model and the new trade theory of international trade (Heckscher and Ohlin 1991; Krugman 1979). The H-O model of international trade basically hypothesize that due to difference in factor endowments trade will only be beneficial if countries are allowed to trade freely among themselves. This will then lead to an increase in trade and improvement in welfare of the populace. Additionally, the H-O model indicate that countries should exports products that make intensive use of locally abundant factors, and imports products that make use of factors that are locally scarce. As regards the new trade theory, it posits that countries can trade among themselves taking the form of intra-industry trade including simple manufactures of agricultural products.