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Other Papers on :International Trade

S/E/19. Use the Ricardian model of comparative advantage and the specific factors model to discuss the effects of international trade on the distribution of income within a country

(2003, 3100 words)

This essay will first explain the Ricardian model of comparative advantage. It will then draw on the specific factors model in order to discuss the effects of international trade on the distribution of income within a country. Free trade has always been the "sacred cow of economists"; they believe that all countries gain from trade. Why then, is there so much opposition to free trade? This essay will demonstrate that although countries gain on the aggregate, trade does have a substantial effect on the distribution of income within a country. Although true, this may not be a strong enough reason to restrict free trade; other alternatives may be more efficient.



 
   
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