Adam Smith is generally ignored as a trade theorist in textbooks of international economics because of the common belief that he only confirmed the rule of absolute advantages to explain structure of foreign trade. However, his vent-for-surplus approach may be interpreted as a pioneering study which stresses the importance of economies-of-scale in explaining the structure of trade. This short paper addresses to the undeniable influence of Smith's concepts such as "extent of the market", "division of labor", "improved dexterity in every particular workman" and "simple inventions coming from workman" on trade theory.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
2595.
Find related papers by JEL classification: B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith) F10 - International Economics - - Trade - - - General A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists