The Neoclassical Theory Of International Trade

One of the main and historically early form of world economic relations is an international trade, which in the XX century became the base of the world market formation. International trade - is a form of international economic relations, which reflects the import and export of goods and services and is based on the international division of labor. Having arisen in ancient times, world trade reached a significant scale and assumed the character of stable international commodity-money relations in the XVIII-XIX centuries. A powerful impulse of this process was the creation in a number of industrially more developed countries (England, Holland, and others) the large-scale machine production, based on a regular import of raw materials from economically

What products should this or that country sell? The basis of free trade - the removal of restrictions on the movement of goods and services from one country to another – was laid by the Classical economists (mostly British). The neoclassical theory of international trade developed in the framework of the classical theory of international trade. There are some basic fundamental theories:

1. The first theory of international trade was mercantilism (T.Men, A.Serra, A.Monkreten). The mercantilists believed that the wealth that nations had were fixed and, consequently, welfare of a country was possible only through the redeployment of existing wealth, at the cost of other countries. The mercantilists believed that for ensuring a constant inflow of gold into the country export should increase and import should be limited. Over time, the best practices of mercantilism began to enter into conflict with the needs of developing capitalism, which required the abolition of feudal restrictions and the transition to free trade. Further development of the theory of international trade received in the writings of the classical

The main feature of the state regulation of international trade is the ability to use in the interaction of two different types of trade policy: liberalization (free trade policy), and protectionism. Government regulation methods can be divided into tariff and non-tariff. Tariff methods means the application of duties - taxes that are paid for the transportation of goods across the border. The purpose of the establishment of tariffs is to restrict imports and reduced competition from foreign producers. Under the measures of non-tariff regulation means a system of methods used by the state to regulate foreign economic activity, but non-tariff instruments. This includes licensing, quotas, specific duties, import duties, certification and others. International trade is also stimulated and regulated by the world trade organizations: General Agreement on Tariffs and Trade, and then World Trade Organization, United Nations Commission on International Trade Law and United Nations Conference on Trade and Development and