What is the theoretical basis of international trade

The theoretical basis of the international ** is comparative advantage.

Corresponding to comparative advantage is absolute advantage. The concept of absolute superiority is not difficult to understand, for example, I am stronger than you in the field of tire manufacturing, and I am in absolute superiority in manufacturing technology. However, in the international world, it is not possible to determine the relations between countries on this basis.

For example, the rubber raw materials required for the tires I manufacture are subject to you, and the products exported from us to your side also have transportation and logistics customs clearance costs, as well as labor costs, and the cost of products in your territory plus all aspects will be higher than your domestic ****.

Therefore, the relationship between the two countries is based on comparative advantage rather than absolute advantage. The division of labor and cooperation is based on comparative advantage, not absolute advantage. You know, the time and energy of a place is limited.

You may be better at everything, but you can't do everything yourself. Of course, you can choose to do everything yourself, but then you will get less than you will get by working with me.

The concept of comparative advantage tells us that for a country or individual who is strong in all aspects, the smart thing to do is not to rely on strength, attack from all sides, and do everything in every way, but to spend limited time, energy, and resources where it does best. Conversely, a country or individual who is vulnerable in all respects does not have to feel sorry for itself and complain about its innate inadequacies. You know, the resources of the "strong" are also limited.

For its own benefit, the "strong" must set aside territory for the "weak".

In fact, China's Tian Ji.

Horse racing stories also reflect this principle of comparative advantage. The upper, middle, and lower batches of horses of the side represented by Tian Ji were inferior in quality to King Qi at each level.

of horses. However, Tian Ji used the dismount that had no advantage at all to the upper horse of the king of Qi who had a complete advantage, and then used the upper and middle horses with a relative comparative advantage to deal with the middle and lower horses of the king of Qi, and the result was a steady win.

The exchange of goods and services between countries, and the causes and consequences of international commodity exchange, as well as related policies.

<>1. Mercantilism: The only form of wealth is gold and silver, and the amount of gold and silver is the only measure of a country's wealth, and the main channel for obtaining gold and silver is the international market. By limiting the amount of money in prizes and limiting the amount of money to achieve a surplus, so that gold and silver can flow in, the country will be rich.

2. Theory of absolute superiority: Adam Smith believed that in the international division of labor, each country should specialize in producing its own products with absolute superiority, and exchange a part of them for products with absolute disadvantage, so that the resources of each country can be used most efficiently, and the division of labor and exchange will be better promoted, so that each country can obtain the greatest benefits.

3. Theory of comparative advantage: following the principle of taking the importance of the two advantages and the lesser of the two inferior, it is believed that the relative difference in the technical level between countries produces the difference in comparative costs, which constitutes the cause of the international model and determines the international model.

4. Protection theory: From the height of protecting productive forces, the protection of the national economy is combined with the national economic development to form a protection theory based on nationalism, and it is more objective and practical in the implementation of the protection policy.

5. Mutual demand theory: The theory of mutual demand essentially refers to the theory that the value of commodities is determined by supply and demand, which is a perfect and supplementary to the theory of comparative advantage.

It can be referred to and has a certain enlightening effect, but it cannot be directly appropriated without modification at all. The traditional theory is to focus on the goods; For nearly 20 years, the service **.

and investment** are growing rapidly. The traditional theoretical framework and analytical methods still have certain reference value, but they are not pertinent and rational.

What are the traditional international theories?

The traditional international theories are: absolute advantage theory, h-o-s model, relative advantage theory or comparative advantage theory.

1. Ricardo.

The doctrine of comparative advantage is that each country engages in specialized production that is conducive to improving the terms of exchange of commodities, and through international exchange, in order to improve the income and welfare of each country. The theory of comparative advantage mainly emphasizes that countries have different functional characteristics in terms of demand and supply. The division of labour between countries, i.e. specialized production, allows for the development of different technologies.

Thus even the same labor force, the production function of various countries.

It is also different, so that the economy is divided between countries, each with its own role.

2. The main conclusion of the h-o-s theory is that a certain country mainly exports the relatively abundant and cheap factors of production that it has.

The products produced are also imported from the relatively scarce local factors of production.

3. Heckscher's theory of Ohlin (H-O-S, ELI Heckscher-bertil ohin-Paul Semuelson) model is a two-country, two-commodity, and two-resource endowment.

model. Its main assumptions are the following:

1) The factors of production are homogeneous, or the technical level of production is the same, so the production function of the product is the same. 2) The remuneration for scale of production remains unchanged. 3) Conform to the assumptions of a perfectly competitive market model.

4) The factors of production are fully utilized. 5) The factors of production are different in each country, so the factor intensity of commodities is different, that is, generally speaking, labor-intensive and capital-intensive.

However, American economists.

As early as 1953, based on the statistics of the United States in 1947, Leoncheff found that the capital of imported products in the United States and the capital-labor ratio of exported products. That is to say, the United States as a developed country rich in capital.

Exporting labor-intensive products and importing capital-intensive products, which is inconsistent with the theory of H-O-S**, is known as the "Lyon-Cuff Mystery". Leoncheff's discovery completely overturned the empirical basis of the traditional international ** theory.

The main theories of the international industry are the theory of absolute superiority, mercantilism, and the theory of infant industry protection.

Absolute advantage theory: refers to the absolute difference in the labor cost of producing a certain product between two countries, that is, the labor cost consumed by one country is definitely lower than that of another country.

Mercantilism: refers to the wealth that a country's national strength can obtain based on a surplus of **, that is, the export value is greater than the import value.

Infant Industry Protection** Theory: A new industry in a country may not be able to withstand foreign competition when it is still in the initial stage of its most moderate scale. If the industry can have a comparative advantage in the future, be able to export and contribute to the development of the national economy by adopting appropriate protection policies to enhance its competitiveness, and to adopt transitional protection and support policies.

It is mainly achieved by means such as tariff protection.

Expansion: International**, refers to the exchange of goods and services between different countries or regions. International** is the international transfer of goods and services.

International**also called the world**. International is composed of two parts: import and export, so it is sometimes called import and export.