World Economies 5

Classical and new theories

Heckseher Ohlin relative capital and capital intensive

Labor abundant in labor intensive

Stolper-Samuelson

Trades are win win game, however not everyone win

Britain example in 1815

Rybenzynski-theorem

Classic theory, everyone wins if there is trade in the world

Post-keynesian and leftists
North-South game. Stronger wins, weaker lose
Scale economies the larger you are the cheaper you produce
Porter’s Diamond supporting industries to create the market i.e. Hollywood
films
World economies 6
International trade policy