What are the different international theories?

International trade is an economic exchange or transaction involving the movement of goods, services and capital across borders from one country or territory to another. Although trade has flowed around the world for thousands of years, its economic significance has increased significantly in modern times. In most countries, international trade is now playing a major role in its economies. Over time, economists have developed several theories of international trade not only to better understand it, but also to lead governments in the creation of politics and help businesses benefit from it. Some of the most influential theories of international trade were mercantilism, absolute advantage and comparative advantage.

Mercantilism was the most influential theory of early trade; It dominated the economies of most Western European nations from the 15th century to the end of the 18th century. The main doctrine of this theory was that the economic well -being of the country could be improved by the exports of aosamate; Imports should be reduced and, if possible, avoid. All trade was carried out under government PRAvomoc and the country's financial wealth was defined by how much gold has accumulated. The main problem with Mercantile Theory is that the focus on export at the expense of imports truly prevents the development of international trade.

During the end of the 18th century, economist Adam Smith developed the theory of the absolute benefits that became the most dominant theories of the international trade of his time. This theory has claims that benefits should be obtained from import and export. This theory also encouraged imports by claiming that each country should focus on the production and export of what it is best: the goods and services that have an absolute advantage in production. National wealth is measured not by the ownership of gold, but by the living stall of the population. This theory decreases because it cannot explain why countries without the absolute benefit of the production of any product would be involved in international trade.

developed at the beginning of the 19th century by economist dAvidem Ricard, a theory of comparative benefits has become the basis of future international theories. It is often considered to be the most important concept of modern international theory. Its central principle is that the Earth should specialize in product exports and production, has a relative or comparative advantage compared to other nations, and should import those products with which it is comparable. This theory continued to improve in modern international theories, because some of the prerequisites that they limit its application in the real world.