International Trade in Goods and Factor Mobility

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This up-to-date synthesis of the basic tools and survey results in international trade theory is unique in giving factor mobility equal billing with goods trade, highlighting factor flows in the context of a mainstream approach to trade theory.

The importance of the international flow of factors has grown in recent decades, primarily because of increasing returns, imperfect competition, multinational corporations, and labor migration; theories of factor mobility and trade in goods can no longer be lumped together. Using sophisticated techniques, as well as simple economic intuitions and easy-to-follow diagrams, Kar-yiu Wong systematically presents within unified frameworks all the basic analytical techniques involved in the theories of international trade and factor mobility.

Wong also provides extensive coverage of such issues as interactions between international trade in goods and capital movement, external economies of scale, monopolistic competition and differentiated products, oligopoly, welfare economics of international trade, and policy analysis for various models, and he devotes two separate chapters to multinational corporations and international labor migration. New techniques and approaches to these issues are suggested, and new results obtained for many of them.

For instance, the discussion of intra-industry trade in the presence of positive transport cost and arbitrage is new, as is the systematic examination of the relationship between international trade in goods and factor mobility with external economies of scale, monopolistic competition, and oligopoly. Of particular importance to trade theorists, these issues serve as the link between neoclassical andimperfect-competition models.

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Editorial Reviews

A synthesis of the basic tools and survey results in international trade theory. The volume analyzes issues related to international trade in goods, international factor mobility, and the interactions between the two. The topics include the pure theory of international trade, welfare economics, policy analysis, and special issues such as multinational corporations and international labor migration. The emphasis is on the importance of international factor mobility in the theory of international trade. Annotation c. Book News, Inc., Portland, OR
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Product Details

  • ISBN-13: 9780262231794
  • Publisher: MIT Press
  • Publication date: 10/26/1995
  • Edition description: New Edition
  • Pages: 699
  • Product dimensions: 7.00 (w) x 10.00 (h) x 1.90 (d)

Table of Contents

1 Introduction 3
2 General Equilibrium with Constant Returns and Perfect Competition 23
3 Comparative Advantage and Factor Content of Trade 85
4 International Goods Trade and Capital Movement 139
5 External Economies of Scale 197
6 Monopolistic Competition and Intraindustry Trade in Differentiated Products 253
7 Oligopoly and Intraindustry Trade in Identical Products 305
8 Core Theorems of the Welfare Economics of International Trade 347
9 Gains from Trade for Economies with Imperfections 389
10 Theory of Distortions and Optimal Policy Intervention 433
11 Commercial Policies with Trade in Goods and Factor Mobility 475
12 Strategic Trade Policies 519
13 The Multinational Corporation 585
14 International Labor Migration 625
References 665
Index 689
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