The Discontinuous World Economy

  title={The Discontinuous World Economy},
  author={J. Barkley Rosser},
Broadly two views of the impact of international trade on economic relations between nations have competed for acceptance. The standard Heckscher-Ohlin- Samuelson model, building on the comparative advantage foundation of Ricar- do, suggests that freer trade will lead to gains for all countries involved and a tendency to convergence in income and living standards. This last result is asserted in its strongest form in Samuelson’s (1948,1949) factor-price equalization theorem. For two countries… CONTINUE READING

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