Foundations of the theory of international trade. Classical theories of foreign trade Basic theories of international trade in brief

The rule of international specialization, depending on absolute advantages, excluded from international trade countries that did not have such. D. Ricardo in his work "Principles of Political Economy and Taxation" (1817) developed the theory of absolute advantages and showed that the presence of an absolute advantage in the national production of a particular product is not a necessary condition for the development of international trade - international exchange is possible and desirable when availability of comparative advantages.

D. Ricardo's theory of international trade is based on the following premises:

Free trade;

Fixed production costs;

Lack of international labor mobility;

Lack of transportation costs;

Lack of technical progress;

Full employment;

There is one factor of production (labor).

Comparative advantage theory states that if countries specialize in the production of the goods they produce at relatively lower costs than other countries, then trade will be mutually beneficial for both countries, regardless of whether production in one of them is absolutely more efficient. than the other. In other words: the basis for the emergence and development of international trade can be exclusively the difference in the relative costs of production of goods, regardless of the absolute value of these costs.

In D. Ricardo's model, internal prices are determined only by value, that is, by the terms of the offer. But world prices can also be set by the conditions of world demand, as proved by the English economist J. Stuart Mil. In his work "Principles of Political Economy" he showed at what price the exchange of goods between countries is carried out.

In a free trade, goods will be exchanged at a price ratio that is set somewhere between the relative prices of the goods they trade within each country. The exact final price level, that is, the world prices of mutual trade, will depend on the volume of world supply and demand for each of these goods.

According to the theory of mutual demand developed by J.S. Therefore, the final ratio of prices in trade is determined by the domestic demand for goods in each of the trading countries. The world price is set on the basis of the ratio of supply and demand, and its level should be such that the income from the country's total exports gives it the opportunity to pay for imports. However, when analyzing comparative advantages, it is not the market for an individual product that is investigated, but the relationship between the markets of two goods that are produced simultaneously in two countries. Therefore, one should consider not absolute, but relative volumes of demand and supply of goods.

Thus, this theory is the basis for determining the price of a product, taking into account comparative advantages. However, its disadvantage is that it can only be applied to countries of approximately the same size, when domestic demand in one of them can affect the price level in the other.

in the context of countries specializing in trade in goods in the production of which they have relative advantages, countries can gain from trade ( economic effect). A country benefits from trade because it can buy more of the foreign goods it needs from abroad for its goods than it can from its home market. The gain from trade is obtained both from the side of saving labor costs and from the side of consumption growth.

The implications of comparative advantage theory are as follows:

The balance of aggregate demand and aggregate supply is described for the first time. The cost of a product is determined by the ratio of aggregate demand and supply for it, presented both within the country and from abroad;

The theory is valid for any quantity of goods and any number of countries, as well as for the analysis of trade between its various subjects. In this case, the specialization of countries in certain goods depends on the ratio of wage levels in each country;

The theory substantiated the existence of a gain from trade for all countries participating in it;

There is an opportunity to build foreign economic policy on a scientific foundation.

The limitation of the theory of comparative advantage lies in the premises on which it is built. It does not take into account the impact of foreign trade on the distribution of income within the country, price fluctuations and wages, international movement capital, does not explain trade between almost identical countries, none of which has a relative advantage over the other, takes into account only one factor of production - labor.

1. Determine what activities Aristotle attributed

A - to the economy: B - to the creep statistics:

1.large trade - B

2. speculation - B

3. agriculture - A

4.small trade - A

5. usury - B

6.craft - A

2. Arrange in the correct chronological order:

1.the emergence of the labor theory of value - 3

2.the emergence of the quantitative theory of money - 2

3.the emergence of limiting analysis - 4

4.the emergence of neoclassical theory - 5

5.the emergence of the theory and practice of countercyclical regulation of the economy - 6

6.selection of two sides of the product - 1

3. Determine what is characteristic of the methodology of economic thought in medieval Western Europe:

1.evaluation of economic phenomena from the standpoint of Christian morality - +

2.scholastic method - +

3. normative method - +

4.institutional method

5.statistical methods

4. Arrange economic currents and schools in the order of their origin:

1.neoclassical school - 4

2.physiocracy - 1

3.Marxism - 2

4.neoclassical synthesis - 6

5.Keynesianism - 5

6.marginism - 3

5. Determine what is typical for: A - early mercantilism; B - late mercantilism

1.policy of active trade balance - B

3.Active money balance policy - A

4.expenditure laws - A

5.the prevalence of economic (indirect) methods of influencing the economy - B

6.Providing the development of domestic industry - B

6. Determine which of the following refers to mercantilism:

1. research on the issue of economic crises

2.macroeconomic approach - +

3.using the method of logical abstraction

4.Priority research of the sphere of production

5. research of the sphere of circulation - +

6.microeconomic approach

7.Empirical research method - +

7. Arrange in the correct chronological order:

1.justification of anti-crisis regulation of the economy - 5

2.development of the main provisions of economic liberalism - 2

3.formulation of the laws of rational consumption of a limited number of goods - 4

4.the emergence of the idea of ​​the specific development of different countries - 3

5. development of the main provisions of the policy of protectionism - 1

8. Establish what is typical for: A - mercantilism, B - classical school

1.the sphere of circulation is mainly investigated - A

2.. wealth is created in all areas of production - B

3.active state intervention in the economy - A

4.wealth - stocks of precious metals - A

5.free trade - B

6.causal research method - B

7.protectionism - A

8.the main sphere of the economy contributing to an increase in the country's wealth is foreign trade - A

9. Determine which of the following applies to the classical school as a whole:

1.the study of imperfect competition

2.universality of economic laws - +

3.the main condition of market equilibrium is the equality of savings and investments

4.equality of the contracting parties - +

5.high mobility of the salary level - +

6.the economy of each country develops according to its own laws

7.concept of socio-economic formations

8.Full awareness of all market participants - +

9.search for optimal economic behavior

10. Arrange in the correct chronological order:

1.transformation of the economy into an independent branch of research - 2

2.the emergence of macroeconomics as a section of economic science - 5

3.the emergence of microeconomics as a branch of economic science - 4

4.An attempt to combine micro- and macroeconomics in one theory - 6

5.forming economic theory as a science - 3

6.first attempts to comprehend economic activity - 1

11. Arrange economic currents and schools in the order of their origin:

1.neoliberalism - 5

2.historical school - 3

3.mercantilism - 1

4.classical school - 2

5.neo-Keynesianism - 6

6.monetarism - 7

7.institutionalism - 4

12. Determine what is generally characteristic of marginalism:

1.search for optimal economic behavior - +

2.the study of averages

3.use of limiting analysis - +

4.justification of the need for state regulation of the economy

5.microeconomic approach - +

6.active use of mathematical methods - +

7.Static research - +

13 .Determine what is characteristic of the starting positions: A - classical school, B - neoclassical school

1.the main driving force of economic development is capital accumulation - A

2.the main issue is the efficiency of the economy - B

3.examination of limiting values ​​- B

4.economic liberalism - B

5.Establishment of strict control over the issue of money supply - A

6.the cost principle of determining the cost - B

7.Active use of the methods of exact sciences - B

8.the concept of automatic self-tuning of the market mechanism - A

9.the priority of private property and free competition - B

14. Determine what is generally characteristic of the institutional flow of economic thought:

1.interdisciplinary approach to the study of economics - +

2.criticism of economic liberalism - +

3.the state does not and should not influence economic development

4.all institutions (stable structures in society) affect economic development - +

5.economic development is influenced only by economic institutions

6.criticism of the theory of the rational person

7.evolutionary approach to the study of economics - +

8.the need for state regulation of the economy

15. Determine what is characteristic of the starting positions: A - neoclassicism, B - Keynesianism

1.the most attention is paid to the factors of demand - B

2.the study of microeconomic indicators - A

3.the need for state regulation of the economy - B

4.automatic self-regulation of the market - A

5. redistribution of income in favor of groups with substantially low incomes - B

6.the study of macroeconomic indicators - B

7.Statics is studied - A

8.Justifying and Encouraging Income Inequality - A

9.the existence of involuntary unemployment is recognized - B

10.Special attitude to land as a factor of production - A

11.Absolute price flexibility - A

16. Determine what is typical for anti-crisis programs: A - Keynesianism, B - monetarism

1.active regulation of the economy by the state - A

2.financing of private enterprises from funds state budget- A

3.fighting the budget deficit, reducing government spending - B

4.the state should only create the necessary conditions for the free development of the market mechanism - B

5. tight long-term monetary policy - B

6.the main problem that needs to be dealt with in the economy is inflation - B

7.the main problem that needs to be dealt with in the economy is unemployment - A

8.extensive government spending, budget deficit is not terrible - A

9.increase in taxes - A

10.Flexible short-term monetary policy - A

17. Determine which of these measures of state economic policy were recommended by J.M. Keynes (A), L. Erhard (B):

1.protection of small business - B

2.strong antitrust policy - B

3.extensive government spending to improve the economic environment - A

4.Redistribution of national income in favor of groups with fundamentally low incomes - B

5.stable currency policy - B

6.policy of "cheap money" - A

18. Set the correspondence:

1. J.M. Keynes - 3. the tasks of the state should include regulation of commodity markets

2. M. Friedman - 2. the main task of the state is to establish the balance of the money market; equilibrium of commodity markets will be established automatically

3. F. Hayek - 1. the state cannot and should not influence either the money or commodity markets

19. Determine the correctness of the statement (yes / no):

1. Legists divided society into "lower" and "higher" - no

2.From the point of view of P. Proudhon and S. Sismondi, it is necessary to develop small-scale production - yes

3. Representatives of economic thought in ancient states paid special attention to the organization of private economy - yes

4. . According to D. Ricardo and K. Marx, the profit rate tends to decrease - yes

5. According to representatives of the historical school of Germany, national characteristics do not affect the character economic system- No

6 .. The founders of the classical school are considered W. Petty and P. Bouagillebert - yes

7 .. Representatives of Greek economic thought believed that the main purpose of production should be to make a profit - no

8. The accelerator shows the impact of investments on income growth - yes

9. M. Friedman believed that the state should strive to reduce the rate of inflation to a controlled value - yes

20. Establish a correspondence between economic directions, economists and their theories:

21. Establish a correspondence between the main currents of Western economic thought and their ideas:

22. Establish a correspondence between economic directions (schools) and the concepts (theories) developed by them:

23. Determine the correctness of the statement (yes / no):

1. Thomas Aquinas for the first time in the history of economic thought began to understand profit as a reward for labor and risk - yes

2. A. Marshall is considered the founder of the neoclassical school - yes

3.From the point of view of J.S. Mill, the laws of distribution, like the laws of production, are objective and cannot be changed - no

4. According to P. Bouagillebert, wealth is created in all spheres of production - no

5. From the point of view of legalists, one of the most important tasks of the state in the economy is "balancing the economy" - yes

6. According to Say's law of markets, general crises of overproduction are impossible - yes

7. J.M. Keynes believed that in conditions of mass unemployment, one should not be afraid of inflation - yes

8. For the first time in the history of economic thought, the question of the value of a commodity was posed by Plato - yes

24. Establish a correspondence between schools of economics, economists and their theories:

25. Establish a correspondence between economic currents and the concepts developed by them:

1.mercantilism - 2 1.effective demand

2.classical school - 6,5,4 2.active money balance

3.marginalism - 8.3 3.industrial education of the nation

4.Keynesianism - 1.7 4.Say's law of markets

5.free trade

6.economic liberalism

7.the basic psychological law

8.Gossen's laws

26. Set the correspondence:

international trade is a form of communication between producers of different countries, arising on the basis of the international division of labor, and expresses their mutual economic dependence.

International trade is the process of buying and selling carried out between buyers, sellers and intermediaries in different countries.

The term "foreign trade" refers to the trade of any country with other countries, consisting of paid import (import) and paid export (export) of goods.

V different time appeared and refuted various theories of world trade, which in one way or another tried to explain the origin of this phenomenon, to determine its goals, laws, advantages and disadvantages. Below are the most common theories of international trade.

Mercantelian theory of international trade.

From the theories of international trade, the first to emerge was the mercantilist theory, developed and implemented in the 16th-18th centuries. Thomas Maine and Antoine Montchretien were prominent representatives of this school. The supporters of this theory did not take into account the benefits that countries receive from the import of foreign goods and services in the course of the international division of labor, and only export was considered economically justified. Therefore, the mercantilists believed that the country needed to limit imports (except for imports of raw materials) and try to produce everything by itself, as well as in every possible way to encourage the export of finished products, seeking an inflow of currency (gold). The influx of gold into the country as a result of the positive trade balance increased the opportunities for capital accumulation and thereby contributed to the country's economic growth, employment and prosperity.

The main drawback of this theory should be considered the notion of mercantilists, dating back to the Middle Ages, that the economic benefit of some participants in a commodity exchange transaction (in this case, exporting countries) turns into economic damage to others (importing countries). The main advantage of mercantilism is the export support policy developed by it, which, however, was combined with active protectionism and support of domestic monopolists. In Russia, the most prominent mercantilist was probably Peter I, who in every possible way encouraged Russian industry and the export of goods, including through high import duties and the distribution of privileges to domestic monopolists.

A. Smith's theory of absolute advantages.

The theory of absolute advantages was based on a completely different premise (compared to the mercantilist theory). Its creator, Adam Smith, begins the first chapter of his famous book "A Study on the Nature and Causes of the Wealth of Nations" (1776) with the words that "the greatest progress in the development of the productive force of labor and a significant proportion of the art, skill and ingenuity with which he directed and attached, were, apparently, a consequence of the division of labor ", and then comes to the conclusion that" if any foreign country can supply us with some commodity at a cheaper price than we ourselves are able to produce it, much it is better to buy it from her for some part of the product of our own industrial labor, applied in a field in which we have some advantage. "

The theory of absolute advantages states that it is advisable for a country to import those goods for which its production costs are higher than those of foreign countries, and to export those goods for which its production costs are lower than abroad, i.e. there are absolute advantages. In contrast to the mercantilists, A. Smith advocated free competition within the country and on the world market, sharing the principle of “laissez-faire” put forward by the French economic school of physiocrats - non-interference of the state in the economy.

To the most strong side the theory of absolute advantages should include the fact that it demonstrates the advantages of international trade for all its participants, to weak side- that it leaves no place in international trade for those countries in which all goods are produced without absolute advantages over other countries.

The theory of comparative advantages D. Ricardo.

Former London dealer David Ricardo, in his book Principles of Political Economy and Taxation (1817), devoted a chapter to this theory, in which he proved that it is beneficial for all countries to participate in international trade.

D. Riccardo proved that international exchange is possible and desirable in the interests of all countries.

The essence of the theory of comparative advantage is as follows: if each country specializes in those products in the production of which it has the greatest relative efficiency, or relatively lower costs, then trade will be mutually beneficial for both countries. The principle of comparative advantage, when extended to any number of countries and any number of goods, can have universal implications.

Thus, the theory of relative advantages recommends a country to import the product, the production costs of which in the country are higher than for the exported product. Subsequently, economists proved that this applies not only to two countries and two goods, but also to any number of countries and goods.

The main strength of the theory of comparative advantage is convincing evidence that international trade is beneficial to all its participants, although some may benefit from it less and others more.

The main drawback of Ricardo's theory can be considered that it does not explain why comparative advantage developed. A serious drawback of the theory of comparative advantage is its static nature. This theory ignores any fluctuations in prices and wages, it abstracts from any inflationary and deflationary gaps in the intermediate stages, from all kinds of balance of payments problems. The theory proceeds from the fact that if workers leave one industry, then they do not turn into chronically unemployed, but move to another industry, more productive.

The theory of the ratio of factors of production.

The above question is largely answered by the theory of the ratio of factors of production developed by the Swedish economists Eli Heckscher and Bertil Olin and detailed in the latter's book entitled "Interregional and International Trade" (1933). Using the concept of factors of production (economic resources) created by the French entrepreneur and economist J.-B. Say and then supplemented by other economists, the Heckscher-Ohlin theory draws attention to the different endowments of countries with these factors (more precisely, labor and capital, since Heckscher and Ohlin focused on only two factors). The abundance, excess of some factors in the country makes them cheap in comparison with other, less represented factors. The production of any product requires a combination of factors, and a product in the production of which relatively cheap, surplus factors prevail will be relatively cheap both domestically and in the external market, and thus will have comparative advantages. According to the Heckscher-Ohlin theory, a country exports those goods whose output is based on factors of production that are surplus to it, and imports goods for the release of which it is less endowed with factors of production.

The Leontief paradox.

The Heckscher-Ohlin theory is shared by most modern economists. However, it does not always give a direct answer to the question of why a particular set of goods prevails in the country's exports and imports. The American economist of Russian origin V. Leontyev, studying the foreign trade of the United States in 1947, 1951 and 1967, pointed out that this country with relatively cheap capital and expensive labor force participates in international trade not in accordance with the Heckscher-Ohlin theory: not export, but import turned out to be more capital-intensive.

The so-called Leontief paradox has the following explanations:

a highly qualified American workforce requires large capital expenditures for its preparation (i.e., American capital is invested more in human resources than in production capacity);

the production of American export goods consumes large volumes of imported mineral raw materials, in the extraction of which American capital has been invested.

But in general, the Leontief paradox is a warning against the straightforward use of the Heckscher-Ohlin theory, which, as its subsequent testing showed, works in most, but not in all cases.

Russia can rather be attributed to a case typical of the Heckscher-Ohlin theory: an abundance of natural resources, the presence of large production capacities (i.e., real capital) for processing raw materials (metallurgy, chemistry) and a number of advanced technologies (mainly in the production of weapons and dual-use goods). ) we will explain the greater export of raw materials, simple metallurgical and chemical products, military equipment and goods for milking purposes.

At the same time, the Heckscher-Ohlin theory does not answer the question of why little agricultural production is exported from modern Russia with its vast agricultural resources, but on the contrary, it is imported in huge quantities; why, in the presence of a relatively cheap and skilled labor force, the country exports little, but imports a lot of civil engineering products. Probably, to explain the reasons for international trade in certain goods, it is not enough just the different endowments of countries with factors of production. It is also important how effectively these factors are used in a particular country.

Competitive Advantage Theory.

This theory was developed by the American economist M. Porter. One of the common problems of foreign trade theories is the combination of the interests of the national economy and the interests of firms participating in international trade. This is related to the answer to the question: how do individual firms in specific countries receive competitive advantages in world trade in certain goods, in specific industries?

In his book International Competition (1990), he concludes that the international competitive advantages of national firms depend on the macro environment in which they operate in their own country.

Based on a study of the practices of companies from 10 leading countries, which account for almost half of world exports, he put forward the concept of "international competitiveness of nations." A country's competitiveness in international exchange is determined by the impact and interconnection of four main components:

factor conditions;

demand conditions;

the state of the service and related industries;

the firm's strategy in a specific competitive situation.

Factor conditions are determined by the presence of economic factors, including those arising in the production process (increasing labor productivity with a shortage of labor resources, the introduction of compact, resource-saving technologies with limited land, the development of information technologies). The second component - demand - is determining for the development of the firm. At the same time, the state of domestic demand, in conjunction with the potential opportunities of the external market, decisively affects the corporate situation. Here, it is important to identify the national characteristics (economic, cultural, educational, ethnic, traditions and habits) that affect the exit of the company outside the country. M. Porter's approach assumes the predominant importance of the requirements of the internal market for the activities of individual companies.

The third is the state and level of development of service and related industries and industries. Availability of appropriate equipment, close contacts with suppliers, commercial and financial institutions... Fourth, the firm's strategy and competitive situation. The firm's chosen market strategy and organizational structure, assuming the necessary flexibility - important prerequisites for successful inclusion in international trade. Sufficient competition in the domestic market is a serious incentive. Artificial domination with the help of state support is a negative decision that leads to waste and inefficient use of resources. M. Porter's theoretical premises served as the basis for developing recommendations at the state level to improve the competitiveness of foreign trade goods in Australia, New Zealand and the United States in the 90s.

Alternative theories of international trade.

In recent decades, significant shifts have taken place in the directions and structure of world trade, which do not always lend themselves to an exhaustive explanation within the framework of classical trade theories. This prompts how to further development already existing theories and to the development of alternative theoretical concepts. The reasons are as follows: 1) the transformation of technological progress into a dominant factor in world trade; 2) an increasing share in trade of counter deliveries of similar industrial goods produced in countries with approximately the same supply of factors of production; and 3) a sharp increase in the share of global trade accounted for by intra-firm trade. Let's consider some alternative theories.

The theory of the product life cycle.

The essence of the theory of the life cycle of a product is as follows: the development of world trade in finished goods depends on the stages of their life, i.e. the period of time during which the product is viable in the market and meets the seller's objectives.

A product's life cycle spans four stages - adoption, growth, maturity, and decline. The first stage is the development of new products in response to the emerging demand within the country. Therefore, the production of a new product is of a small-scale nature, requires high qualifications of workers and is concentrated in the country of innovation (usually an industrialized country), and the manufacturer occupies an almost monopoly position and only a small part of the product goes to the external market.

During the growth stage, the demand for a product increases and its production expands and gradually spreads to other countries, the product becomes more standardized, competition between manufacturers increases and exports expand.

The stage of maturity is characterized by large-scale production, the price factor becomes predominant in the competition, and as markets expand and technologies spread, the country of innovation no longer has competitive advantages. Manufacturing begins to move to developing countries where cheap labor can be effectively used in standardized manufacturing processes.

As the product life cycle goes into decline, demand, especially in developed countries, is shrinking, production and sales markets are concentrated mainly in developing countries, and the country of innovation is becoming a frequent importer.

The theory of the product life cycle fairly realistically reflects the evolution of many industries, but it is not a universal explanation of the trends in the development of international trade. If research and development, advanced technology ceases to be the main factor determining competitive advantages, then the production of a product will indeed move to countries that have a comparative advantage in other factors of production, for example, in cheap labor. However, there are many products (with a short life cycle, high transportation costs, with significant opportunities for quality differentiation, a narrow circle of potential consumers, etc.), which do not fit into the theory of the life cycle.

Economies of scale theory.

In the early 80s. P. Krugman, K. Lancaster and some other economists have proposed an alternative to the classical explanation of international trade, based on the so-called scale effect.

The essence of the effect theory is that with a certain technology and organization of production, long-term average production costs per unit of output decrease as the volume of output increases, i.e., there is an economy due to mass production.

According to this theory, many countries (in particular, industrialized ones) are provided with the main factors of production in similar proportions, and in these conditions it will be profitable for them to trade with each other with specialization in those industries that are characterized by the presence of the effect of mass production. In this case, specialization allows you to expand production and produce a product at a lower cost and, therefore, at a lower price. In order for this effect of mass production to be realized, a sufficiently large market is required. International trade plays a decisive role in this, as it allows expanding sales markets. In other words, it allows the formation of a single integrated market, more capacious than the market of any single country. As a result, more products are offered to consumers and at lower prices.

At the same time, the realization of economies of scale, as a rule, leads to the violation of perfect competition, since it is associated with the concentration of production and the consolidation of firms, which become monopolists. The structure of the markets is changing accordingly. They become either oligopolistic with a predominance of inter-industry trade in homogeneous products, or markets of monopolistic competition with developed intra-industry trade in differentiated products. In this case, international trade is increasingly concentrated in the hands of giant international firms, transnational corporations, which inevitably leads to an increase in the volume of intra-firm trade, the directions of which are often determined not by the principle of comparative advantage or differences in the provision of factors of production, but strategic objectives the firm itself.

Each country seeks to optimize its trade relations with other countries. This is facilitated by the theory of international trade, which describes its benefits for a particular country on the basis of factor advantages.

An attempt to determine the meaning of foreign trade, to formulate its goals was made in the economic doctrine of mercantilists at the stage of the decline of feudalism and the emergence of capitalist relations (XV-XVII1 centuries). In accordance with the thesis about the decisive role of the sphere of circulation, which underlies their views, the country's wealth lies in the possession of values, first of all, in the form of gold and precious metals. Representatives of mercantilism T. Maine, A. Montchretien believed that the multiplication of gold reserves is the most important task of the state, and foreign trade should, first of all, ensure the receipt of gold. This is achieved by the excess of exports of goods over their imports, an active trade balance.

The main theories of international trade were laid down in the late 18th and early 19th centuries. Adam Smith and David Ricardo.

A. Smith's theory of absolute advantage
A. Smith in his book "Investigation of the Nature and Causes of the Wealth of Nations" (1776) formulated the theory of absolute advantage and showed that countries should be interested in the free development of international trade, since they can benefit from it, regardless of whether they are exporters or by importers.

The essence of the theory of absolute advantage is as follows: if a country can produce this or that product more and cheaper than other countries, then it has an absolute advantage. These absolute advantages can, on the one hand, be generated by natural factors - special climatic conditions or the presence of huge natural resources. On the other hand, the advantages in the production of various products (primarily in the manufacturing industries) depend on the prevailing production conditions: technology, qualifications of workers, organization of production, etc.

In the absence of foreign trade, each country can consume only those goods and the amount that it produces. The prices of these goods on the market are determined by the national costs of their production.

The situation is different in the presence of foreign trade. Due to differences in the supply of factors of production, technologies used, skills of the labor force, etc., domestic prices for the same goods in different countries are always different. For foreign trade to be profitable, the price of a commodity on the foreign market must be higher than the domestic price of the same commodity in the exporting country. The benefit that countries receive from foreign trade will consist in an increase in consumption, which may be due to the specialization of production.

Conclusion: each country should specialize in the production of the product for which it has an exclusive (absolute) advantage.

D. Ricardo's theory of relative advantage

D. Ricardo in his work "The Principles of Political Economy and Taxation" (1817) proved that the principle of absolute advantage is only a special case of the general rule, and substantiated the theory of comparative advantage.

To illustrate the relative advantages, Ricardo took two countries - England and Portugal, two goods - wine and cloth, and took into account only one factor - national differences in values ​​due to labor costs. He conventionally measured the costs of production by working time.

V this example wine and cloth production in Portugal is absolutely more efficient than in England. Based on the logic of common sense, it can be argued that if production in a given country (Portugal) is more efficient, goods are cheaper, then there is no reason to buy more expensive goods in a country (England), where their production is more expensive. However, this is at first glance. If we follow the principle of comparative advantage, then we must compare not the absolute, but the relative effect. In Portugal, the cost of producing cloth is 2: 1 of the cost of wine production, and in England it is 4: 3, which is relatively less.

With wine, the situation is the opposite. The efficiency of wine production in Portugal compared to the production of cloth is higher than in England (1/2< 3/4). Следовательно, Португалии из соображений эффективности национальной экономики выгодней сосредоточить труд и капитал в виноделии, заменив производство сукна на его импорт из Англии. Англии по тем же соображениям выгоднее специализироваться на производстве сукна, импортируя вино из Португалии.

Heckscher-Ohlin's theory of international trade

D. Ricardo's theory of comparative advantage does not answer the question: "What causes differences in costs between countries?" Swedish economist E. Heckscher and his student B. Olin tried to answer this question. In their opinion, differences in costs between countries are mainly due to the fact that the relative endowments of countries with factors of production are different.

In accordance with the Heckscher-Ohlin model of international trade, the prices of factors of production are equalized in the process of international trade. The essence of the alignment mechanism is as follows. Initially, the price of factors of production (wages, loan interest, rent, etc.) will be relatively low for those that are abundant in a given country, and high for those that are lacking. The specialization of a particular country in the production of capital-intensive goods leads to an intensive flow of capital into export industries. The demand for capital increases in comparison with its supply and, accordingly, its price (interest on capital) increases. On the contrary, the specialization of other countries in the production of labor-intensive goods leads to the movement of significant labor resources to the corresponding sectors, and the price of labor (wages) increases accordingly.

Thus, in accordance with this model, both groups of countries are gradually losing their initial advantages, and their levels of development are leveling off. This creates conditions for expanding the range of export industries, their deeper inclusion in the international division of labor, taking into account the comparative advantages that have arisen at the new level of their development.

The Leontief paradox

In the mid-1950s, the famous American economist of Russian origin Vasily Leontyev attempted to empirically test the main conclusions of the Heckscher-Ohlin theory and came to paradoxical conclusions. Using the input-output model of input-output balance, built on the basis of data on the US economy for 1947, V. Leontyev proved that relatively more labor-intensive goods prevailed in American exports, and capital-intensive ones prevailed in imports. This empirically obtained result contradicted what was proposed by the Heckscher-Ohlin theory, and therefore was called the "Leontief paradox". Subsequent studies confirmed the presence of this paradox in the post-war period not only for the United States, but also for other countries (Japan, India, etc.).

Numerous attempts to explain this paradox made it possible to develop and enrich the Heckscher-Ohlin theory by taking into account additional circumstances affecting international specialization, among which we can note: heterogeneity of factors of production, primarily labor force, which can differ significantly in skill level; quality of management decisions; state foreign trade policy, etc.

Stolper-Samuelson theorem

Wolfgang F. Stolper and P. Samuelson proved that, under certain prerequisites, foreign trade divides society into those who remain in net gains and those who bear losses.

Prerequisites: the country produces two goods (for example, wheat and cloth) using two factors of production (for example, land and labor); none of the goods is used to produce the other; there is absolute competition; the supply of factors is given; for the production of one of the goods (wheat), land is intensively used, and the second (cloth) is labor-intensive both in terms of foreign trade and without it; both factors can move between sectors (but not between countries); the establishment of trade relations leads to an increase in the relative price of one of the goods (for example, wheat).

The Stolper-Samuelson theorem: under the conditions listed above, the establishment of trade relations and free trade inevitably lead to an increase in the remuneration of a factor intensively used in the production of a commodity, the price of which is increasing (land), and a decrease in the remuneration of a factor intensively used in the production of a commodity, the price of which falls (labor), regardless of what is the structure of consumption of these goods by owners of factors of production.

Jones amplification effect

According to the Stolper-Samuelson theorem, international trade leads to an increase in the price of a factor that is intensively used to produce a commodity, the price of which is increasing, and a decrease in the price of a factor that is intensively used to produce a commodity, the price of which is falling. However, the question arises: is the increase (or decrease) in the price of a factor of production proportional to the increase (or decrease) in the price of the goods produced with its help?

Economic analysis shows that the increase or decrease in the price of factors of production occurs to a greater extent than the increase or decrease in the price of the goods produced with their help. The effect of this effect is called the Jones amplification effect.

Comparative advantage theories

International trade is the exchange of goods and services through which countries meet their limitless needs based on development social division labor.

The main theories of international trade were laid down in the late 18th and early 19th centuries. eminent economists Adam Smith and David Ricardo. A. Smith in his book "Research on the nature and causes of the wealth of peoples" (1776) formulated the theory of absolute advantage and, arguing with mercantilists, showed that countries are interested in the free development of international trade, since they can benefit from it regardless of whether are they exporters or importers. D. Ricardo in his work "The Principles of Political Economy and Taxation" (1817) proved that the principle of advantage is only a special case of the general rule, and substantiated the theory of comparative advantage.

When analyzing theories of foreign trade, two circumstances should be taken into account. First, economic resources - material, natural, labor, etc. - are unevenly distributed between countries. Second, the efficient production of different goods requires different technologies or combinations of resources. At the same time, it is important to emphasize that economic efficiency with which countries are able to produce different goods can and does change over time. In other words, the advantages, both absolute and comparative, enjoyed by countries are not data once and for all.

The theory of absolute advantage.

The essence of the theory of absolute advantage is as follows: if a country can produce this or that product more and cheaper than other countries, then it has an absolute advantage.

Consider a conventional example: two countries produce two goods (grain and sugar).

Suppose one country has an absolute advantage in grain and another in sugar. These absolute advantages can, on the one hand, be generated by natural factors - special climatic conditions or the presence of huge natural resources. Natural benefits play a special role in agriculture and in the extractive industries. On the other hand, the advantages in the production of various products (primarily in the manufacturing industries) depend on the prevailing production conditions: technology, qualifications of workers, organization of production, etc.

In conditions when there is no foreign trade, each country can consume only those goods and the amount that it produces, and the relative prices of these goods in the market are determined by the national costs of their production.

Domestic prices for the same goods in different countries are always different as a result of the peculiarities in the supply of factors of production, the technologies used, the qualifications of the labor force, etc.

For trade to be mutually beneficial, the price of any product on the foreign market must be higher than the domestic price for the same product in the exporting country and lower than in the importing country.

The benefit that countries receive from foreign trade will consist in an increase in consumption, which may be due to the specialization of production.

So, according to the theory of absolute advantage, each country should specialize in the production of the product for which it has an exclusive (absolute) advantage.

The Law of Comparative Advantage. In 1817, D. Ricardo proved that international specialization is beneficial for the nation. This was the theory of comparative advantage, or, as it is sometimes called, the theory of comparative cost of production. Let's consider this theory in more detail.

Ricardo took only two countries for simplicity. Let's call them America and Europe. Also, to simplify matters, he took into account only two goods. Let's call them food and clothing. For simplicity, all production costs are measured in labor time.

One should probably agree that trade between America and Europe should be mutually beneficial. It takes less workdays to produce a food unit in America than in Europe, while a unit of clothing in Europe takes fewer workdays than America. It is clear that in this case, America, apparently, will specialize in the production of food and, exporting some of it, will receive a ready-made dress exported by Europe in return.

However, Ricardo did not stop there. He showed that comparative advantage depends on the ratio of labor productivity.

Based on the theory of absolute advantage, foreign trade always remains beneficial for both parties. As long as differences remain in the ratios of domestic prices between countries, each country will have a comparative advantage, that is, it will always have a commodity whose production is more profitable at the existing ratio of costs than the production of others. The gain from the sale of products will be greatest when each product is produced by the country in which the opportunity cost is lower.

Comparing situations of absolute and comparative advantage leads to an important conclusion: in both cases, the gains from trade arise from the fact that cost ratios are different in different countries, i.e. the directions of trade are determined by relative costs, regardless of whether the country has an absolute advantage in the production of any product or not. It follows from this conclusion that a country maximizes its gain from foreign trade if it specializes entirely in the production of a product for which it has a comparative advantage. In reality, such a complete specialization does not occur, which is explained, in particular, by the fact that replacement costs tend to increase with the growth of production volumes. In the face of increasing substitution costs, the factors that determine the direction of trade are the same as with constant (constant) costs. Both countries can benefit from foreign trade if they specialize in the production of those goods where they have a comparative advantage. But with increasing costs, firstly, full specialization is unprofitable and, secondly, as a result of competition between countries, the marginal replacement costs are leveled.

It follows that as food and dress production increases and specializes, a point will be reached at which the cost ratio in the two countries is leveled.

In this situation, the grounds for deepening specialization and expanding trade - differences in the ratio of costs - exhaust themselves, and further specialization will be economically inexpedient.

Thus, the maximization of gains from foreign trade occurs with partial specialization.

The essence of the theory of comparative advantage is as follows: if each country specializes in those products in the production of which it has the greatest relative efficiency, or relatively lower costs, then trade will be mutually beneficial for both countries from the use of productive factors will increase in both cases.

The principle of comparative advantage, when extended to any number of countries and any number of goods, can have universal implications.

A serious disadvantage of the principle of comparative advantage is its static nature. This theory ignores any fluctuations in prices and wages, it abstracts from any inflationary and deflationary gaps in the intermediate stages, from all kinds of balance of payments problems. It proceeds from the assumption that if workers leave one industry, then they do not turn into chronically unemployed, but inevitably move to another, more productive industry. Not surprisingly, this abstract theory severely compromised itself during the Great Depression. Some time ago, her prestige began to recover again. In a mixed economy, based on the theory of neoclassical synthesis, mobilizing modern theories of chronic recession and inflation, the classical theory of comparative advantage is again gaining social significance.

The theory of comparative advantage is a coherent and logical theory. For all its oversimplification, it is very important. A nation that ignores the principle of comparative advantage can pay dearly for this - a decline in living standards and a slowdown in potential economic growth.

Heckscher-Olin's theory of international trade

The theory of comparative advantage leaves aside the key question: what causes differences in costs between countries? Swedish economist E. Heckscher and his student B. Olin tried to answer this question. In their opinion, differences in costs between countries are mainly due to the fact that the relative endowments of countries with factors of production are different.

According to the Heckscher-Olin theory, countries will tend to export surplus factors and import scarce factors of production, thereby compensating for the relatively low provision of countries with factors of production on the scale of the world economy.

It must be emphasized that we are talking here not about the number of factors of production available to countries, but about the relative provision of them (for example, about the amount of land suitable for cultivation per one worker). If in a given country some factor of production is relatively greater than in other countries, then the price for it will be relatively lower. Consequently, the relative price of the product in the production of which this cheap factor is used to a greater extent than others will be lower ”than in other countries. Thus, comparative advantages arise that determine the direction of foreign trade.