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Some Refinements

In: International Trade Theory and Policy

Author

Listed:
  • Giancarlo Gandolfo

    (Accademia Nazionale dei Lincei Classe di Scienze Morali)

Abstract

The theories examined in the previous chapters are based on a common set of rather restrictive assumptions (perfect competition, rigid supply of ubiquitous and internationally immobile factors of production, absence of intermediate goods, no transport costs, and so on). The question is: what happens when these assumptions are relaxed? This chapter is concerned with the introduction of those elements which can be dealt with from inside the traditional theory, of which they are in fact a refinement. The theory of foreign direct investment and multinational corporations also finds its place here. In Part II of the book we shall examine the consequences of introducing non-competitive elements and other alternative explanations of international trade, which can be fitted only partially (if at all) into the framework of the traditional theory.

Suggested Citation

  • Giancarlo Gandolfo, 2014. "Some Refinements," Springer Texts in Business and Economics, in: International Trade Theory and Policy, edition 2, chapter 0, pages 109-156, Springer.
    • Handle: RePEc:spr:sptchp:978-3-642-37314-5_6
    DOI: 10.1007/978-3-642-37314-5_6
    as

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