It is not a theory of international trade. Classical theories of foreign trade

As you know, the foundations of the theory of international trade were formulated in the late 18th - early 19th centuries. eminent English economists Adam Smith and David Ricardo.

A. Smith in his book "A Study on the Nature and Causes of the Wealth of Nations" (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 whether they are exporters or importers.

Theories of international trade

Modern theories of international trade have their own history of the question - why do countries trade with each other? - was set by economists simultaneously with the emergence at the beginning of the 17th century of the first schools of economic thought, which began to pay attention to the development of foreign trade. Classical and neoclassical theories have one significant drawback: in order to confirm them with practice, you need to withstand many restrictions and assumptions, which, unfortunately, are difficult to implement in real life, this has led to an active search for new theories that explain various problems of foreign trade in modern conditions.

Mercantilist theory of international trade

The first attempts to define the meaning of foreign trade, to formulate its goals was made at the stage of transition of feudalism to capitalism - XV-XVIII centuries. - in the economic doctrine of the mercantilists (T. Man, C. Davenant, J. B. Colbert).

Adhering to a static view of the world, they proceeded from the following:

the country's wealth was associated with the gold and silver it possessed; the world had a limited amount of wealth;

the wealth of one country could only increase at the expense of the impoverishment of another.

to export more goods than to import, which allows to increase the influx of gold, production and employment;

regulate foreign trade to increase exports and reduce imports through tariffs, quotas and other instruments;

strictly limit the export of raw materials and allow duty-free import of raw materials that are not mined in the country, which will allow to accumulate gold and keep export prices for finished products low;

prohibit all trade of the colonies with other countries, except for the mother country, as well as the production of finished goods.

The mercantilists believed that the true wealth of the country was gold (money) and, based on this, created the theory of foreign trade. In their opinion, foreign trade should be focused on the maximum safety and increase in the amount of gold in the country. In this regard, it was recommended to stimulate exports and limit imports so as not to spend gold on buying goods outside the country. At the same time, bans were introduced on the trade of the colonies with all countries except the mother countries, on the development of production in the colonies - they should only become suppliers of raw materials to the mother country.

Mercantilists offered enrichment of some countries at the expense of others. The main drawback of this theory should be considered the notion of mercantilists, dating back to the Middle Ages, that the savings benefit of some participants in a barter transaction turns into economic damage to others (importing countries). The main advantage of mercantilism can be attributed to the political support he developed for exports, which, combined with active protectionism and support for domestic monopolists in Russia, was probably the most prominent mercantilist - who in every possible way encouraged the Russian industry to export goods, including through high import duties, a bunch of privileges domestic monopolies.

The school of mercantilism existed for more than a century and a half and contributed to the theory of international trade: for the first time, the importance of foreign trade for the economic growth of countries was emphasized, and the balance of payments was described. At the same time, the views of the mercantilists were limited, which consisted in the fact that they saw the enrichment of one nation only at the expense of the impoverishment of another, and achieved this with the help of protectionist policies.

Classical theory of international trade

The foundations of the theory of international trade were formulated in the late 18th - early 19th centuries by A. Smith and D. Ricardo within the framework of the classical school. For the first time, the free trade policy was defined by A. Smith when he substantiated the theory of international trade, proving the need to liberalize the conditions for the import of foreign goods by relaxing customs restrictions. A. Smith proved the necessity and importance of foreign trade, emphasizing that "the exchange is favorable for each country; each country finds an absolute advantage in it." A. Smith's analysis was the starting point of the classical theory, which serves as the basis for all types of free trade policies.

D. Ricardo supplemented and developed the ideas of A. Smith. He showed why nations trade, to what extent exchange between two countries is most beneficial, highlighting the criteria for international specialization. It is in the interests of each country, D. Ricardo believes, to specialize in production in which it has the greatest advantage or the least weakness, and for which the relative benefit is the greatest.

Theory of Absolute Advantage

The writer Adam Smith begins the first chapter of his famous book "An Inquiry into the Nature and Causes of the Wealth of the People" in 1776. That "the greatest progress in the development of the productive power of labor and a significant share of art, ingenuity."

With what it is directed and applied, were the result of the division of labor and comes to the conclusion: that if any foreign country can supply us with any commodity at a cheaper purchase than we ourselves are able to manufacture it, it is much better to buy it from her to some part of the product of our own industrial labor, applied in that area in which we have some advantage.

The theory of absolute advantage says 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 goods for which its production costs are lower than those of foreign countries, i.e. there are absolute benefits. In contrast to the mercantilists, A. Smith advocated freedom of competition within the country and on the world market, sharing the principle put forward by the French economic school of the physiocrats. government intervention in the economy.

The essence of the theory of absolute advantage - if a country can produce a particular product more and cheaper than other countries, then it has an absolute advantage.

international trade comparative advantage

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

The disadvantage of A. Smith's theory was that the factors of production have absolute mobility within the country and move to regions where they receive the greatest absolute advantage. But after some time, the advantage of some regions over others may disappear, and therefore, foreign trade will also stop.

However, his merit was that through the presence of natural and acquired advantages, he explained intercountry trade flows.

Theory of comparative advantage

D. Ricardo in his "Principles of Political Economy and Taxation" (1817) formulated a more general principle of mutually beneficial trade and international specialization, including A. Smith's model as a special case. He showed that international trade is beneficial to every country, even if none of them has an absolute advantage in the production of specific goods. D. Ricardo formulated the theory of comparative advantages by introducing the concept of an alternative price. The opportunity price is the ratio of the labor time required to produce a unit of one good to the labor time required to produce a unit of another good. The law of comparative advantage can be formulated as follows: countries specialize in the production of those goods for which their labor costs are comparatively lower, although they can absolutely be somewhat higher than abroad. From this followed the conclusion: free world trade leads to specialization in the production of each country, the development of the production of relatively advantageous goods, an increase in output throughout the world, and also to an increase in consumption in each country.

The theory of comparative advantage had certain shortcomings that further contributed to its withering away. Among them:

the theory proceeds from the presence of only two countries and two goods;

implies the dominance of free trade;

based on fixed production costs;

assumes no transport costs;

does not take into account the effect of scientific and technological revolution, technical changes;

proceeds from the presence of complete interchangeability of resources in their alternative use.

for the first time described the balance of aggregate supply and demand;
· proved that the country receives a gain from foreign trade, not causing damage to other countries, but seeking opportunities for the development of trade within the country and refusing to introduce trade barriers;
· summed up the scientific basis for the development of further theories.

Heckscher-Ohlin-Samuelson theory

At the end of XIX - beginning of XX centuries. as a result of structural shifts in world trade, the role of natural differences as a factor in MRI has decreased.

E. Heckscher and B. Olin (20-30 years of XX century) created a theory explaining the causes of international trade in manufactured products.

Countries are endowed to varying degrees with labor, capital, land, as well as different needs for certain goods. In a country where there is a lot of labor resources and not enough capital, labor will be relatively cheap and capital expensive, and vice versa. Thus, the Heckscher-Ohlin theory can be formulated as follows: each country exports those goods for the production of which it has relatively excess factors of production, and imports those goods for the production of which it experiences a relative shortage of factors of production. According to the Heckscher-Ohlin model:

trade is based on the comparative advantages of countries;

the reason for comparative advantage is the difference in the endowment of countries with factors of production.

In the middle of the XX century. American economists L. Samuelson and W. Stolper improved the Heckscher-Ohlin theory by imagining that in the case of homogeneity of factors of production, identity of technology, perfect competition and complete mobility of goods, international trade equalizes the price of factors of production between countries. The concept is based on the model of D. Ricardo with the additions of Heckscher and Ohlin and considers world trade not just as a mutually beneficial exchange, but also as a means to reduce the gap in the level of development between countries.

Leontiev's theory of international trade

An American economist of Russian origin, V. Leontiev, studying the structure of US exports and imports in 1956, found that, contrary to the Heckscher-Ohlin theory, relatively more labor-intensive goods prevailed in US exports, and capital-intensive goods dominated in imports.

This result became known as Leontief's paradox.

Further studies showed that the contradiction discovered by V. Leontiev can be eliminated if more than two factors of production are taken into account when analyzing the structure of trade.

By including in the analysis more than two factors of production, including scientific and technical progress, differences in the types of labor (skilled and unskilled) and their differentiated pay in different countries, V. Leontiev explained the above paradox and thus contributed to the theory of comparative advantages.

Neotechnological theory of foreign trade

The weak side of classical theories is that for their practical confirmation it is necessary to comply with numerous restrictions and assumptions. Therefore, economists of the XX century. search for new theories that explain various aspects of international trade, based on classical theories, developing or refuting them.

At the present stage, the neoclassical school coexists with the neotechnological school, which has been developed since the middle of the 20th century. based on NTR. The theories of international trade that emerged on the basis of scientific and technological revolution completely rejected the basic concepts of classical theories and offered other approaches to explaining world trade. Features of the Neotech School of International Trade:

inclusion in the research process of additional new factors and variables, including various human and capital resources of countries, scientific and technical progress, conditions of an imperfect market for goods and production factors and international mobility of the latter, etc.;

the macroeconomic approach to the analysis of world trade was supplemented by a microeconomic one, the main advantages were associated with the monopoly position of the firm (country) - innovator;

the object of international trade in this case was technology, both embodied in science-intensive goods and in the form of licenses;

neotechnological school connects the main advantages with the monopoly position of the firm (country) - the innovator. Hence the new strategy for individual firms: to produce not what is relatively cheaper, but what everyone or many people need, but which no one else can produce yet;

the state can and should support the production of high-tech export goods and not interfere with the curtailment of the production of other obsolete ones.

Neotech includes:

the theory of the technological gap by M. Pozner (1961);

S. Camp's theory of scale effect (1964);

theory of imperfect competition P. Krugman (1979);

R. Vernon's theory of product life cycle (1966);

the theory of the competitive advantage of the nation by M. Porter (1986), etc.

Technology Gap Theory

As a result of scientific and technical progress, innovations in one of the industries initially occur in one or more leading countries. These countries for a certain time occupy a monopoly position in the world in the production of a novel product. Thus, the advantage gained by the innovator country is the result of the emerging technological gap in the levels of development of individual countries.

This can change the country's foreign trade specialization, encouraging it to partially abandon the production of traditional products, in which it has a relative advantage, and to switch to the production of original products that have no analogues in the world.

Theory of economies of scale

With certain technologies and organization of production, long-term average costs are reduced with an increase in the volume of output, i.e. economies of scale arise. According to the theory, many countries (especially developed ones) are provided with the main factors of production in similar proportions, and under these conditions it will be profitable for them to trade among themselves with specialization in those industries that are characterized by the presence of the effect of mass production. For the effect of mass production to be realized, a capacious market is needed. International trade plays a decisive role in this, expanding markets. It allows you to form a single integrated market, more capacious than the market of a single country. As a result, consumers are offered more products and at lower prices.

Product life cycle theory

The theory was developed in the second half of the 60s.R. Vernon, C. Kindelberg and L. Wales. According to the concept, a new product goes through a life cycle with stages: introduction, expansion, maturity and aging, on the basis of which modern trade relations between countries can be explained in the exchange of finished products.

According to the life cycle, countries specialize in the production of exports of the same product at different stages of maturity.

M. Porter's Theory of Competitive Advantage of the Nation

Key message: Firms, not countries, compete in the international market, so it is important to understand how a firm creates and maintains competitive advantage and to understand the country's role in this process. The competitiveness of a country in international trade is determined by the impact and relationship of four main components, called the "competitive rhombus". The competitiveness of a country in international exchange is determined by the interaction and interconnection of the main components (determinant of competitive advantage):

factor conditions - specific factors of production that are needed for successful competition in a given industry;

conditions of demand for goods and services, i.e. what is the demand in the domestic market for the products and services offered by the industry;

the strategy of firms in a given country, their structure and rivalry, i.e. what are the conditions in the country that determine how firms are created and managed, and what is the nature of competition in the domestic market;

the nature of related and supporting industries available in the country - the presence or absence in the country of related or supporting industries that are competitive in the world market.

Firm Theory

The theory is connected with the strengthening of the role of individual firms and corporations in international trade. Advantages are always received not by the nation, but by a separate firm - the exporter of this product. Only after the expansion of production and saturation of the domestic market, the firm can enter the foreign market. In order to sell your products, you need to find a buyer country whose demand structure in the domestic market would be as close as possible to the demand structure of the exporting country. This makes it possible to carry out trade transactions between countries that are at the same level of economic development, and between developed industrial countries. This provision was first substantiated by the American economist E. Linder. In the future, supporters of the theory of the firm substantiated the need for a merger of companies in developed countries with firms in young industrial states. This was due to the convergence of the levels of scientific and technological development, the strengthening of production and marketing contacts, the joint solution of scientific and technical problems. This process has embraced knowledge-intensive industries. The most active role in it was played by small and medium-sized companies.

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Introduction

The traditional and most developed form of international economic relations is foreign trade. Trade accounts for about 80 percent of the total volume of international economic relations. The theories of international trade, leading from the English classical political economy, have gone through a number of stages in their development along with the development of world economic thought. However, their central questions were and remain the following:

What is the basis of the international division of labor?

What international specialization is most effective for individual countries and regions and brings them the greatest benefits?

What factors determine a country's competitiveness in world trade? For any country, the role of foreign trade can hardly be overestimated. According to the definition of J. Sachs, “the economic success of any country in the world is based on foreign trade. No country has yet managed to create a healthy economy by isolating itself from the world economic system.” In modern conditions, the country's active participation in world trade is associated with significant advantages: it allows more efficient use of the resources available in the country, join the world's achievements in science and technology, carry out structural restructuring of its economy in a shorter time, and also more fully and diversely meet the needs of population. In this regard, it is of considerable interest to study both theories that reveal the principles of optimal participation of national economies in international commodity exchange, the factors of competitiveness of individual countries in the world market, and the objective patterns of the development of world trade. These problems are of particular importance for Russia and other countries that have embarked on the path of creating a developed market economy focused on active participation in world trade.

1. Basic theories of international trade

1.1 Classical theory of international trade

A. Smith substantiated the thesis, according to which the basis for the development of international trade is the difference in absolute costs. He noted that one should import goods from a country where costs are absolutely lower, and export those goods whose costs are lower than exporters. The views of A. Smith were supplemented and developed by D. Ricardo, who formulated the theory of comparative costs. D. Ricardo showed that international exchange is possible and desirable in the interests of all countries. He considered mutually beneficial trade possible even in the presence of absolute advantages of one country over another in the production of goods. Specialization based on the use of the principle of comparative advantage provides a more efficient allocation of world resources and the growth of world production of relevant goods. However, it should be borne in mind that the considered model of the division of labor is based on a number of simplifications. It comes from the presence of only two countries and two goods, free trade, perfect mobility of labor (i.e., labor) within each country in the absence of its overflow between countries); fixed production costs, complete interchangeability of resources for alternative uses; ignoring differences in wage levels between countries, as well as the absence of transport costs and technical changes. These initial prerequisites were necessary to identify the basic principles for the development of international trade. However, some of them need to be clarified. In practice, the expansion of production in many industries is associated with an increase in marginal costs, so the release of each subsequent unit of this product required the abandonment of an ever-increasing amount of all the others.

1.2 Heckscher-Ohlin model

The new model was created by the Swedish economists Eli Heckscher and Bertel Ohlin. Up until the 60s. the Heckscher-Ohlin model dominated the economic literature. The essence of the neoclassical approach to international trade and the specialization of individual countries is as follows: For reasons of historical and geographical nature, the distribution of material and human resources between countries is uneven, which, according to neoclassicists, explains the differences in relative prices for goods, on which, in turn, depend national comparative advantage. From this follows the law of proportionality of factors: in an open economy, each country tends to specialize in the production of goods that require more factors with which the country is relatively better endowed. Olin put this law even more succinctly: "International exchange is the exchange of abundant factors for rare ones: a country exports goods whose production requires more abundant factors."

1.3 Leontief's paradox

The famous American economist Wassily Leontiev, studying the structure of US exports and imports in 1956, found that, contrary to the Heckscher-Ohlin theory, exports were dominated by relatively more labor-intensive goods, while imports were dominated by capital-intensive ones. This result became known as Leontief's paradox. Further studies showed that the contradiction discovered by V. Leontiev can be eliminated if more than two factors of production are taken into account when analyzing the structure of trade. What explanation did V. Leontiev give to his paradox? He hypothesized that, in any combination with a given amount of capital, one man-year of American labor is equivalent to three man-years of foreign labor. And this means that the US is indeed a labor-surplus country, so there is no paradox. V. Leontiev also suggested that the greater productivity of American labor is associated with higher qualifications of American workers. He ran a statistical test that showed that the US was exporting goods that required more skilled labor than those required to produce "competing imports." To do this, V. Leontiev divided all types of labor into five skill levels and calculated how many man-years of labor of each skill group are needed to produce $1 million worth of US exports and “competing imports”. It turned out that export goods required significantly more skilled labor than imported ones.

1.4 Michael Porter's Theory of Country Competitive Advantage

The theory of comparative advantage was further developed on a qualitatively new basis in the works of the famous American economist Michael Porter. Based on the analysis of extensive statistical material covering about 100 industries in eight industrialized countries. M. Porter created an original theory of the country's competitive advantage. The central place in his concept is occupied by the idea of the so-called national rhombus, which reveals the four main properties (“determinants”) of the economy that form the competitive macro-environment in which the firms of this country operate. The "national rhombus" reveals a system of determinants that, being in interaction, create a favorable or unfavorable environment for realizing the country's potential competitive advantages.

2. The concept of international trade

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. The following definition is often given in the literature: "International trade is the process of buying and selling between buyers, sellers and intermediaries in different countries." International trade includes the export and import of goods, the ratio between which is called the balance of trade. The UN statistical handbooks provide data on the volume and dynamics of world trade as the sum of the value of exports of all countries of the world. Structural shifts taking place in the economies of countries under the influence of scientific and technological revolution, specialization and cooperation of industrial production enhance the interaction of national economies. This contributes to the intensification of international trade. International trade, which mediates the movement of all intercountry commodity flows, is growing faster than production. According to foreign trade studies, for every 10% increase in world production, there is a 16% increase in world trade. This creates more favorable conditions for its development. When there are disruptions in trade, the development of production slows down. The term "foreign trade" refers to the trade of a country with other countries, consisting of paid import (import) and paid export (export) of goods. Diverse foreign trade activities are subdivided according to commodity specialization into trade in finished products, trade in machinery and equipment, trade in raw materials and trade in services. International trade is the paid total trade turnover between all countries of the world. However, the concept of "international trade" is also used in a narrower sense: for example, the total trade turnover of industrialized countries, the total trade turnover of developing countries, the total trade turnover of countries of any continent, region, for example, Eastern Europe, etc. World prices differ depending on from the time of year, place, conditions for the sale of goods, features of the contract. In practice, the prices of large, systematic and stable export or import transactions concluded in certain centers of world trade by well-known firms - exporters or importers of the relevant types of goods are taken as world prices. For many commodities (cereals, rubber, cotton, etc.), world prices are set in the course of operations on the world's largest commodity exchanges. Sooner or later, all states face the dilemma of choosing a foreign trade national policy. There have been heated discussions on this topic for two centuries. It is in the interest of each country to specialize in the industry in which it has the greatest advantage or the least weakness, and for which the relative advantage is greatest. National production differences are determined by different endowment with factors of production - labor, land, capital, as well as different internal needs for certain goods. The effect exerted by foreign trade (in particular, exports) on the dynamics of national income growth, on the size of employment, consumption and investment activity, is characterized for each country by quite definite quantitative dependencies and can be calculated and expressed as a certain coefficient - a multiplier (multiplier). Initially, export orders will directly increase output, and hence wages, in the industries that fulfill this order. And then secondary consumer spending will kick in.

3. Main stages in the development of world trade

Originating in ancient times, world trade reaches a significant scale and acquires the character of stable international commodity-money relations at the turn of the 18th and 19th centuries. A powerful impetus to this process was the creation in a number of more industrialized countries (England, Holland, etc.) of large-scale machine production, focused on large-scale and regular imports of raw materials from the economically less developed countries of Asia, Africa and Latin America, and exports of manufactured goods to these countries. primarily for consumer use. In the XX century. World trade has gone through a series of deep crises. The first of these was associated with the World War of 1914-1918, it led to a long and deep disruption of world trade, which lasted until the end of World War II, which shook the entire structure of international economic relations to its foundations. In the post-war period, world trade faced new difficulties associated with the collapse of the colonial system. It should be noted that all these crises were overcome. On the whole, a characteristic feature of the post-war period was a noticeable acceleration in the rate of development of world trade, which reached the highest level in the entire previous history of human society. Moreover, the growth rate of world trade exceeded the growth rate of world GDP. Since the second half of the 20th century, when international exchange is becoming "explosive", world trade has been developing at a high pace. In the period 1950-1994. world trade turnover increased 14 times. According to Western experts, the period between 1950 and 1970 can be described as a "golden age" in the development of international trade. Thus, the average annual growth rate of world exports was in the 50s. 6%, in the 60s. - 8.2. In the period from 1970 to 1991, the physical volume of world exports (that is, calculated at constant prices) increased 2.5 times, the average annual growth rate was 9.0%, in 1991-1995. this indicator was equal to 6.2%. Accordingly, the volume of world trade also increased. So in 1965 it amounted to 172.0 billion, in 1970 - 193.4 billion, in 1975 - 816.5 billion dollars, in 1980 - 1.9 trillion, in 1990 - 3 .3 trillion and in 1995 - over 5 trillion dollars. It was during this period that an annual 7% growth in world exports was achieved. However, already in the 70s it dropped to 5%, decreasing even more in the 80s. At the end of the 1980s, world exports showed a noticeable recovery (up to 8.5% in 1988). After a clear decline in the early 1990s, in the mid-1990s, it again demonstrates high sustainable rates. The stable, sustainable growth of international trade was influenced by a number of factors:

1) the development of the international division of labor and the internationalization of production;

2) scientific and technological revolution, contributing to the renewal of fixed capital, the creation of new sectors of the economy, accelerating the reconstruction of old ones;

3) vigorous activity of transnational corporations in the world market;

4) regulation (liberalization) of international trade through the activities of the General Agreement on Tariffs and Trade (GATT);

5) liberalization of international trade, the transition of many countries to a regime that includes the abolition of quantitative restrictions on imports and a significant reduction in customs duties - the formation of free economic zones;

6) development of trade and economic integration processes: elimination of regional barriers, formation of common markets, free trade zones;

7) obtaining political independence of the former colonial countries.

Separation from their number of "new industrial countries" with a model of the economy focused on the external market. According to available forecasts, the high rates of world trade will continue in the future: by 2003, the volume of world trade will increase by 50% and exceed 7 trillion dollars. Since the second half of the 20th century, the uneven dynamics of foreign trade has noticeably manifested itself. This affected the balance of power between countries in the world market. The dominance of the United States was shaken. In turn, Germany's exports approached the US, and in some years even exceeded it. In addition to Germany, exports of other Western European countries also grew at a noticeable pace. In the 1980s, Japan made a significant breakthrough in international trade. By the end of the 1980s, Japan began to emerge as a leader in terms of competitiveness factors. In the same period, it was joined by the "new industrial countries" of Asia - Singapore, Hong Kong, Taiwan. However, by the mid-1990s, the United States was once again taking a leading position in the world in terms of competitiveness. They are closely followed by Singapore, Hong Kong, as well as Japan, which previously held the first place for six years. So far, the developing countries have mainly remained suppliers of raw materials, foodstuffs, and relatively simple finished products to the world market. However, the growth rate of trade in raw materials lags markedly behind the overall growth rate of world trade. This lag is due to the development of substitutes for raw materials, their more economical use, and the deepening of their processing. Industrialized countries have almost completely captured the market for high technology products. At the same time, some developing countries, primarily the "newly industrialized countries", have managed to achieve significant changes in the restructuring of their exports, increasing the share of finished products, industrial products, incl. machines and equipment. Thus, the share of industrial exports of developing countries in the total world volume in the early 1990s was 16.3%.

4. Structure and main commodity flows of world trade

Considering the structure of world trade in the first half of the 20th century (until World War II) and in subsequent years, we see significant changes. If in the first half of the century 2/3 of the world trade was accounted for by food, raw materials and fuel, then by the end of the century they account for 1/4 of the trade. The share of trade in manufacturing products increased from 1/3 to 3/4. And finally, more than 1/3 of all world trade in the mid-1990s was trade in machinery and equipment. The commodity structure of world trade is changing under the influence of scientific and technological revolution, the deepening of the international division of labor. Currently, manufacturing products are of the greatest importance in world trade: they account for 3/4 of the world trade turnover. Particularly rapidly growing is the share of such types of products as machinery, equipment, vehicles, chemical products, manufacturing products, especially science-intensive goods. The share of food, raw materials and fuel is approximately 1/4. One of the rapidly developing areas of international trade is trade in chemical products. It should be noted that there is a trend towards an increase in the consumption of raw materials and energy resources. However, the growth rate of trade in raw materials lags markedly behind the overall growth rate of world trade. This lag is due to the development of substitutes for raw materials, their more economical use, and the deepening of their processing. In world food trade, there is a relative decrease in demand for it. To some extent, this is due to the expansion of food production in industrialized countries. An important trend is the expansion of trade in this group of goods between industrialized countries. In connection with the growth of such trade, the exchange of services has grown sharply: scientific, technical, industrial, commercial, financial and credit. Active trade in machinery and equipment has given rise to a number of new services, such as engineering, leasing, consulting, information and computing services, which, in turn, stimulates cross-country exchange of services, especially scientific, technical, industrial, communicative financial and credit nature. At the same time, trade in services (especially such as information and computing, consulting, leasing, engineering) stimulates world trade in industrial goods. The most rapidly growing export of electrical and electronic equipment, which accounts for more than 25% of all exports of engineering products. Export is the sale of goods in another country, which differs from its sale in its own domestic market in terms of sales, traditions and customs, language, etc.

Commodity structure of world exports by main groups of goods, %*

Main product groups
Food (including drinks and tobacco)

mineral fuel
Manufacturing products
Equipment, vehicles
Chemical products
Other manufacturing products
Ferrous and non-ferrous metals
Textiles (yarn, fabrics, clothes)

The geographical distribution of world trade is characterized by the predominance of countries with developed market economies of industrialized countries. So, in the mid-90s. they accounted for about 70% of world exports. Unlike most developing countries, the "newly industrialized countries"), in particular the four "little dragons" of Asia (South Korea, Taiwan, Hong Kong, Singapore), are showing rapid growth in exports. Their share in world exports in the mid-90s was 10.5%. China, which has been gaining economic momentum in the last decade, reached 2.9% (it was less than 1%). The United States in world exports account for 12.3%, Western Europe - 43%; Japan -9.5% (see Table 2). Characterizing the main trends in the geographical orientation of international trade, it should be emphasized that the development and deepening of the international division of labor between industrialized countries will lead to an increase in their mutual trade and a decrease in the share of developing countries . The main commodity flows flow within the framework of the "big triad": the USA - Western Europe - Japan.

Major exporting states in 1994

	Export, billion dollars	Share in world trade, %

Germany


Great Britain



Holland
Belgium/Luxembourg

Singapore
South Korea

The currently raging currency crisis in Asian countries is not over yet. However, it is already spilling over into a regional economic crisis. What will be its impact on the economy of other regions - that is the question. The role of the United States in dealing with this currency crisis is far less visible than that which it played in resolving the Mexican crisis in 1995. Now Washington prefers to give the leading role to Tokyo. Thus, American financial participation in the plan to save the Thai economy by providing 16 billion dollars will be carried out only through international organizations. But this crisis will have such consequences for the economy and markets of America (as well as European countries, by the way), which simply cannot be neglected. Asia, excluding Japan, accounts for 20 percent of US merchandise exports. Total US exports to this region correspond to 1.6 percent of US GDP. A contraction in the economic activity of countries in crisis could result in a slowdown in the economic growth of the United States in 1998 by 0.25-0.5 percent. This is the opinion of the famous economist S. Roch. Moreover, the currency crisis in Asian countries will have a direct negative impact on the flow of capital to the United States. Washington has never placed so many of its securities abroad as recently. In the period 1995-1996 alone, the United States earned $465 billion from sales of government securities to foreigners. The bulk of their purchases come from Asian investors. The recession in the activity of financial institutions in these countries, caused by the crisis, will certainly lead to a reduction in demand for US bonds. At the end of 1996, 60 percent of all loans to foreign clients were provided to Asian countries ($120 billion in total). German banks provided about $42 billion, French about $38 billion, and American banks $34 billion. And now looms the prospect of restructuring bank loans in connection with the crisis. And this will deal a serious blow to the interests of banks in many countries. A notable trend in modern international trade is an increase in the volume of trade between developing countries. The export expansion of the "new industrial countries" is especially noticeable. Since the exports of industrialized countries are dominated by sophisticated technology, developing countries are of relatively less interest to them as markets for such products. Sophisticated equipment is often not needed by developing countries, because it does not fit into the established production cycle. Sometimes they just can't afford it. The commodity structure of Russian exports in recent years has retained its focus on raw materials. Dominant positions continue to be occupied by fuel and energy products, ferrous and non-ferrous metals and chemical fertilizers. In 1996, the share of the main types of fuel and energy resources (oil, oil products, natural gas and coal) in total exports to non-CIS countries increased to 45 percent (from about 40 percent in 1995). Ferrous and non-ferrous metals such as aluminium, nickel, and copper can be singled out among other raw materials, providing 18 percent of the value of exports to non-CIS countries.

5. Contradictions of modern international trade and methods of dealing with them

Analyzing the processes taking place in world trade, it should be emphasized that liberalization is its main trend. There has been a significant reduction in the level of customs duties, many restrictions, quotas, etc. have been abolished. However, there are a number of problems. One of the main ones is the growth of protectionist tendencies at the level of economic groupings, trade and economic blocs of countries that in many respects oppose each other. The compositions of the nine largest international regional trading blocs are presented below:1. European Union (EU) - Austria, Germany, Great Britain, Italy, Ireland, France, Spain, Portugal, Finland, Sweden, Denmark, Belgium, Luxembourg, Netherlands, Greece. The European Communities (EU), or the so-called "Common Market", are an association of states that strive for political and economic unity while partially relinquishing their national sovereignties. The Common Market member countries see themselves as the core of the future United States of Europe. The "Common Market" includes: - the European Coal and Steel Community (the corresponding agreement entered into force in 1952) - the European Economic Community (the agreement entered into force in 1958). These agreements were supplemented and expanded by the so-called Uniform European Acts, entered into force in 1978. The Single European Acts are the basis for political cooperation between the Common Market member states. The Common Market is the world's largest trading partner. The population of the member countries of the "Common Market" is 320 million people, i.e. more than the population of the United States (239 million people). Since 1967, the European Communities have the following common supranational or interstate bodies: - The Council of Ministers - the legislative body; - The Commission of the European Communities - the executive body. Only the Commission has the right to submit draft laws for approval by the Council of Ministers; - The European Parliament is the supervisory body. It oversees the activities of the Commission and approves the budget; - The Court of Justice of the European Communities - the highest judicial body; - The European Council, which includes the heads of government of member countries; - European Economic Cooperation, a committee composed of 12 foreign ministers and one member of the EU Commission. In their work, the European Council and the Commission of the European Communities are supported by two more organizations operating within the Common Market: - Economic and Social Council; - EU Advisory Commission on Coal and Steel. There is a Common Market organization with more than 20,000 employees from different countries, who are represented in accordance with the so-called national proportion on funds generated from import duties, a special item of which is deductions for sugar, customs tariff, a certain part of tax deductions value added, and other means. The Common Market spends funds on agricultural subsidies and support for less developed regions, finances research and development, helps developing countries, and, of course, supports itself. The basis of the policy of the European Communities is five principles: - Free trade exchange (free trade); - Free movement of citizens of member countries; - Freedom to choose a place of residence; - Freedom to provide services; - Free circulation of capital and free payment circulation (transfer of capital); First a step in realizing the goals of the "Common Market" was the creation of a free single market, in other words, the implementation of trade without mutual duties, the establishment of commodity contingents, and the introduction of other restrictions. At the same time, a unified system of duties was introduced in relation to third countries (customs union). Naturally, this association, which has already become like a state, cannot do without its own currency. And she appeared. The first step towards the creation of the European Monetary System was the introduction in 1971 of the European currency unit - the ECU (ECU). Since then, the ECU has been used as a unit of account for determining the Common Market budget and national currency rates, as well as for all settlements and transfers between EU institutions. It is listed on European stock exchanges. The foreign trade policy of the "Common Market" is designed primarily to look after the interests of the member countries. Therefore, the main focus is on protecting manufacturers from doping prices of external exporters through the introduction of a "limited" or "marginal" price. The "intervention" and "limited import" prices set for each year by the Council of Ministers of the European Communities serve the same purpose. Also, the bodies of the "Common Market" fight against unfair competition and various abuses in the market, by introducing various legislative restrictions.

2. North American Free Trade Agreement (NAFTA)- USA, Canada, Mexico.

3. European Free Trade Association (EFTA)- Iceland, Norway, Switzerland, Liechtenstein.

4. Asia-Pacific Economic Cooperation (APEC)- Australia, Brunei, Malaysia, Singapore, Thailand, New Zealand, Papua New Guinea, Indonesia, Philippines, Taiwan, Hong Kong, Japan, South Korea, China, Canada, USA, Mexico, Chile.

5. Mercosur- Brazil, Argentina, Paraguay, Uruguay.

6. South African Development Committee (SADC)- Angola, Botswana, Lesotho, Malawi, Mozambique, Mauritius, Namibia, South Africa, Swaziland, Tanzania, Zimbabwe.

7. West African Economic and Monetary Union (WAEMOA)- Ivory Coast, Burkina Faso, Nigeria, Togo, Senegal, Benin, Mali.

8. South Asian Association for Regional Cooperation (SAARC)- India, Pakistan, Sri Lanka, Bangladesh, Maldives, Bhutan, Nepal. Objective processes lead to the formation of such blocks.

9. Andean pact- Venezuela, Colombia, Ecuador, Peru, Bolivia. political, economic, historical character. The activation of such processes, on the one hand, contributes to the development of international trade (within zones, blocs, regions), and on the other hand, creates for it a number of obstacles inherent in any closed formation. On the way to a single, global system of the world market, there are still many obstacles and contradictions that will arise in the course of the interaction of trade and economic groups with each other. International economic organizations play an important role in regulating international trade, in removing obstacles to its development and liberalization. One of the main organizations of this kind is the General Agreement on Tariffs and Trade (GATT). The Treaty establishing the GATT was signed by 23 countries in 1947 and entered into force in 1948 on 31 December. 1995 GATT ceased to exist, having been modified into the World Trade Organization (WTO). GATT is a multilateral international agreement containing the principles, legal norms, rules of conduct and state regulation of mutual trade of the participating countries. GATT was one of the largest international economic organizations, the scope of which covered 94% of world trade. The activities of the GATT were carried out through multilateral negotiations, which were combined into rounds. Since the beginning of the work of the GATT, 8 rounds have been held, the results of which have led to a tenfold reduction in the average customs duty. After World War II it was 40%, in the mid-1990s it was about 4%20.

6. Fundamentals of legal support of world trade

The distribution of risks between the seller and the company is made on the basis of international trading conditions established by the International Chamber of Commerce, the so-called "Incoterms". There are quite a lot of these international trading conditions. They are subject to frequent changes and are regularly published by the International Chamber of Commerce. The fourteen most important terms: "ex works", "free carrier", "FOR/FOT", "FOB airport", "FAS", "FOB", "C&F", "freight/carriage paid to", "freight/carriage and insurance paid to", "ex ship", "ex quay", "delivered at frontier", "delivered duty paid". conditions in accordance with which all types of responsibility are assigned to the buyer, and ending at the other extreme, when, on the contrary, everything is the responsibility of the seller.

7 . Types of world trade

The main organizational form in the wholesale trade of countries with developed market economies is independent firms engaged in their own trade. But with the penetration of industrial firms into the wholesale trade, they created their own trading apparatus. Such are the wholesale branches of industrial firms in the USA: wholesale offices engaged in information services for various customers, and wholesale depots. Large German firms have their own supply departments, special bureaus or sales departments, wholesale warehouses. Industrial companies create subsidiaries to sell their products to firms and may have their own wholesale network. Direct links between production and retail trade are used, bypassing specialized wholesale firms. However, in a number of cases, with an abundance and a wide territorial concentration of retail trade firms that buy the goods of a given industrial company, if significant post-production processing is required, direct ties are inappropriate. Vertical associations of the "contract type" are common - when an industrial concern is merged with trading firms. In such "chain companies" central purchasing offices are created, and the independence of small firms is limited. The latter began to develop other forms of integration, such as cooperative associations of retailers. Another form of "chain companies" - "voluntary chains" - a contractual form of communication between wholesalers and retailers while maintaining the independence of the participants in the "chain". In a “voluntary chain”, a joint wholesale firm serves the retail firms that created it; in a cooperative association, wholesale firms join forces with retail firms. Vertical associations give their participants a number of advantages: more favorable conditions for reproduction in comparison with the conditions of non-integrated firms, greater stability and reliability of supplying trading firms with goods, more reliable sales, and a corresponding reduction in overstocking. The organizational structure of wholesale trade in Japan has its own differences. It is based on trading houses that provide all stages of not only trade, but also the production of goods. They supply industrial enterprises with raw materials, sell their finished products, semi-finished products, coordinate the activities of related enterprises, participate in the development of new products, etc. In Japan, there are almost no direct links between production, retail and end consumers. The prevailing is the obligatory mediation of wholesalers, mainly specialized, acting as sales representatives of industrial companies. 22 An important parameter in wholesale trade is the ratio of universal and specialized wholesale firms. The trend towards specialization can be considered universal (in specialized firms, labor productivity is much higher than in universal ones). Specialization goes to the subject (commodity) and functional (i.e., limitation of the functions performed by the wholesaler) feature. Commodity exchanges occupy a special place in wholesale trade. They look like trading houses where they sell anything, both wholesale and retail. Basically, commodity exchanges have their own specialization: coal, oil, timber, grain, etc. Public exchange trading is based on the principles of a double auction, when increasing offers from buyers meet decreasing offers from sellers. When the prices of the offers of the buyer and the seller coincide, a deal is concluded. Each concluded contract is publicly registered and brought to the attention of the public through the press and communication channels. Price movement will be determined by the number of sellers willing to sell a product at a given price level and buyers willing to purchase a given product at that price level. A feature of modern exchange trading with high liquidity (a large number of sellers and buyers) is that the difference between the prices of offers for sale and purchase is 0.1% of the price level and lower, while on stock exchanges this figure reaches 0.5% of the price stocks and bonds, and in real estate markets - 10% or more.

7.1 Commodity exchanges

There are several main types of commodity exchanges:

1) Open - accessible to everyone. They sell real goods, so sellers and buyers directly participate in transactions. Intermediaries between them are possible, but not required. The activity of such exchanges is poorly regulated.

2) Open exchanges of a mixed type, already with intermediaries - brokers acting at the expense of the client, and dealers acting at their own expense.

3) Closed - trading in real goods.

On them, sellers and buyers are not entitled to enter the "exchange ring" and thereby directly contact each other. Currently, exchanges of real goods have been preserved only in some countries and have insignificant turnover. They are, as a rule, one of the forms of wholesale trade in goods of local importance, the markets of which are characterized by a low concentration of production, marketing and consumption, or are created in developed countries in an attempt to protect national interests in the export of goods that are essential for these countries. There are almost no exchanges of real goods left in the developed capitalist countries. But in certain periods, in the absence of other forms of market organization, exchanges of real goods can play a significant role. The institution of the exchange has not lost its significance for international trade, in connection with the transformation from the exchange of a real commodity into a market for the rights to goods, or into the so-called futures exchange.

7.2 Futures exchanges

The combination of elements of purchase, sale and credit in trade transactions and the interest of the merchant to get money as soon as possible for the largest possible part of the cost of the goods, regardless of its actual sale, were the most important factors in organizing a new type of exchange trading - futures. Derivatives (futures) exchanges, where they trade not in goods, but in contracts for the supply of goods in the future. These can be closed futures exchanges, where only professionals directly trade and transactions of insurance of prices of contractual goods from the risk of their decline or, conversely, growth in the future prevail; open futures exchanges, where, in addition to professionals, sellers and buyers of contracts participate. Futures exchange trading is one of the most dynamic sectors of the capitalist economy. In modern conditions, it is futures trading that is the dominant form of exchange trading. Futures exchanges allow not only to sell goods faster, but also to accelerate the return of advanced capital in cash in an amount that is as close as possible to the initially advanced capital plus the corresponding profit. In addition, the futures exchange provides savings in reserve funds that a businessman keeps in case of unfavorable conditions. The main features of futures trading are: - the fictitious nature of transactions, that is, the sale and purchase, in which there is almost no exchange of goods (real deliveries account for 1-2% of the total turnover), since the obligations of the parties to the transaction are terminated by a reverse operation with payment of the difference in prices; - mainly indirect connection with the market of real goods (through hedging, and not through the supply of goods); - strictly defined and unified in advance, devoid of any individual characteristics, the use value of the goods, a certain amount of which is potentially represented by an exchange contract used as a carrier prices directly equated to money and exchanged for them at any time (in the case of delivery of goods under a futures contract, the seller has the right to deliver goods of any quality and origin provided for by the rules of the exchange); - complete unification of the conditions regarding the quantity of goods allowed for delivery (for example p, 5,000 bushels of wheat or 1,000 barrels of oil), place and timing of delivery; - anonymity of transactions and the substitutability of counterparties for them, since they are not concluded between a specific seller and a specific buyer, but between them (and more often their brokers) and the settlement chamber - a special organization at the exchange, which plays the role of a guarantor of the fulfillment of the obligations of the parties when they buy or sell exchange contracts. At the same time, the exchange itself does not act as one of the parties in the contract or on the side of one of the partners. In futures transactions, the full freedom of the parties is preserved only in relation to the price and limited in the choice of the delivery time of the goods; all other conditions are strictly regulated and do not depend on the will of the parties involved in the transaction. In this regard, futures exchanges are sometimes called the "price market" (i.e., exchange values), in contrast to commodity markets (aggregate and unity), such as real commodity exchanges, where the buyer and seller can agree on any terms of the contract. Precisely as a price market, the stock exchange meets the requirements of large-scale production at the highest stage of development of capitalism. The transformation of the exchange from the market of real goods into a kind of institution that serves and reduces the cost of trade and credit and financial transactions occurred as a result of increased concentration of sales, production and consumption of exchange goods (but while maintaining competition), the emergence and evolution of forms of financial capital. Currently, futures exchanges serve the needs of both small and large companies. In recent years, with the development of communications and electronic computing technology, electronic exchanges have been created. In particular, such an exchange was organized in Bermuda, in which a ring or a pit was replaced by a powerful computer connected by terminal devices of brokers located in different countries. However, the volume of transactions on this exchange is not large and the electronic exchange is not particularly popular, although, in my opinion, it has a great future, largely due to the night trading function.

7.3 stock exchanges

Securities are traded on international money markets, that is, on the stock exchanges of such large financial centers as New York, London, Paris, Frankfurt am Main, Tokyo, Zurich. Securities are traded during business hours on the stock exchange, or the so-called stock time. Only brokers (brokers) can act as sellers and buyers on the stock exchanges, who fulfill the orders of their clients, and for this they receive a certain percentage of the turnover. For trading in securities - stocks and bonds - there are so-called brokerage firms, or brokerage houses.28 The exchange rate of shares and other securities depends solely on the relationship between supply and demand. The index of quotation (rates) of shares is an indicator of the prices of the most important shares on the exchanges. It usually includes stock prices of the largest enterprises. The stock quote index is a kind of indicator of the climate on the stock exchange.

7 . 4 Trade fairs

One of the best ways to find contact between a producer and a consumer is through fairs, most often specialized ones, which allow the consumer to compare and choose the product that suits him best in terms of consumer qualities and price, without spending a lot of effort searching for information about the producers of the goods he needs. At thematic fairs, manufacturers exhibit their goods “in person” on the exhibition areas, and the consumer has the opportunity to choose, buy or order the goods he needs right on the spot. After all, the fair is a vast exhibition, where stands with goods and services are distributed according to topics, industries, destinations, etc. Therefore, anyone, having orientated on the topics of the exhibitions, can choose the one that will allow them to meet with manufacturers of interest to them. Accordingly, the manufacturer meets at the fair an audience that is interested in his product. The role of fairs in the future will not decrease, but, on the contrary, will increase. With the development of the international division of labor, which will be further deepened by the free exchange of goods in Europe. With some exceptions, visitors and participants of the European fairs were not interfered with or restricted in any way. And this is despite the fact that the organization of fair business in different countries of Europe is very different. So in Germany, fairs, as a rule, are held by organizing societies, for which this is their main activity. They belong to the state or communes, are independent of the participants and own the territory where the fairs are held. The largest of them have an annual turnover of 200 to 400 million marks. The German trade fair business is also characterized by intensive cooperation between the three parties - organizers, participants and visitors. In France, numerous industry exhibitions are organized by organizing societies, which in most cases do not have their own fairgrounds. Almost all such premises and buildings in Paris are administered or owned by the Chamber of Commerce and Industry, while in the provinces many organizers have their own facilities for organizing fairs and exhibitions. But the vast majority of industry and specialized fairs are held in the French capital. There is also a large number of exhibition organizers in the Italian fair economy, which are either owned by industrial associations or are private. The largest fair company in Italy is the Milan Fair, which has no competitors in terms of its annual turnover, which is 200-250 million marks. It mainly rents exhibition pavilions, but also acts as an organizer. In the fair business of Great Britain, two large companies operating outside the country, Reed and Blenheim, stand out, the annual turnover of which ranges from 350 to 400 million marks. However, they also receive a significant part of their turnover outside the UK, so that in the country itself fairs are held mainly by numerous small private companies. Exhibition areas in most cases belong to communal organizations. According to official figures, about 30 percent of Italy's foreign trade is carried out through fairs, including 18 percent through Milan. It has 20 representative offices abroad. The share of foreign exhibitors and visitors averages 18 percent. The Madrid Fair is predicted to have a very big future (on a European scale). This fair, leaving Barcelona behind, has taken the first place in the country and now has the best fair infrastructure. The management of the Madrid Fair hopes to push it to second place after the leading German fairs. This should be facilitated by 20 foreign representations. The management intends to select the best participants, focusing not on quantity, but on quality, and believing that in the future the most promising will be small, but "well visible" fairs. The Utrecht Fair is the largest and most successful fair center in the Benelux countries. Located at the crossroads of the most important transport routes in the Netherlands, it has 60,000 square meters of exhibition space for 40-50 trade fairs annually, as well as 4,000 square meters for trade in non-food and consumer goods. It receives over 2.5 million visitors annually. With over 700,000 visitors and more than 30 events a year, Copenhagen's Bella Center is Scandinavia's largest exhibition, trade and conference centre. On an area of 24,000 square meters out of a total area of 95,600 square meters, a permanent exhibition of clothing, furniture, and office equipment is located on two floors, which presents products from leading Scandinavian companies. In a short time the visitor can get acquainted with the best examples of what Scandinavian industry has to offer in this area. There is a special hotel in which offices of foreign firms can be placed. Fairs in Germany as a whole occupy a leading position in Europe. Among European fairs, one of the oldest is Leipzig. It has become one of the largest shopping centers. In the post-war period, it was often the only opportunity for the development of trade relations between East and West. Leipzig is now becoming one of the most dynamic shopping centers in Europe, with particularly large capital investments and new requirements. The main one: instead of large universal exhibitions, to hold purposeful and well-visible small exhibitions, focusing on the needs of the market. The Munich Fair puts special emphasis on the more complete industry on a global scale. Munich acquires the function of a bridge between East and West. Every year, the fair hosts about 20 international events with 24,000 participants from 88 countries and 2 million visitors from more than 130 countries. The Munich Fair holds the world record for the most "change of scenery" in its smaller area. The Berlin Fair is very attractive for Poland, Hungary, the Czech Republic, Slovakia, the Baltic and Scandinavian countries, as well as for Russia and the countries of the former USSR. For these regions, it has become an international trade center. Its exhibition pavilions are booked months in advance. In areas such as agriculture, tourism, radio electronics, the Berlin Fair occupies a leading position on the continent. Its importance is also growing rapidly in such trade fair sectors as construction, electrical, automotive, aerospace, as well as fairs for sanitary equipment, office equipment, water supply and water protection. Last year, the turnover of the fair exceeded 200 million marks and has a steady upward trend.

Theories of international trade

Theories of comparative advantage

International trade is the exchange of goods and services, through which countries satisfy their unlimited needs on the basis of the development of the social division of 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 “A Study on the Nature and Causes of the Wealth of Nations” (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 whether they are exporters or importers. D. Ricardo in his "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 among countries. Second, the efficient production of different goods requires different technologies or combinations of resources. It is important to emphasize, however, that the 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 given 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 a particular product more and cheaper than other countries, then it has an absolute advantage.

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

Suppose one country has an absolute advantage in grains and the other 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 advantages play a special role in agriculture and 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 where there is no foreign trade, each country can consume only those goods and such quantities as 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 peculiarities in the availability of factors of production, the technologies used, the qualifications of the labor force, etc.

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

The benefit to countries from foreign trade will be 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 in 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. It was the theory of comparative advantage, or, as it is sometimes called, "the theory of comparative costs 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 the matter, he took into account only two goods. Let's call them food and clothing. For simplicity, all production costs are measured by labor time.

It should probably be agreed that trade between America and Europe should be mutually beneficial. It takes fewer working days to produce a unit of food in America than in Europe, while it takes fewer working days to produce a unit of clothing in Europe compared to America. It is clear that in this case, America will apparently specialize in food production and, exporting a certain amount of it, will receive in return a ready-made dress exported by Europe.

However, Ricardo did not limit himself to this. He showed that comparative advantage depends on labor productivity ratios.

Based on the theory of absolute advantage, foreign trade always remains beneficial for both parties. As long as there are differences in the ratios of domestic prices between countries, each country will have a comparative advantage, that is, it will always have a product whose production is more profitable at the existing cost ratio 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.

Comparison of situations of absolute and comparative advantage leads to an important conclusion: in both cases, the gain from trade stems from the fact that the ratios of costs in different countries are different, i.e. The directions of trade are determined by relative costs, whether or not a country has an absolute advantage in the production of a product. It follows from this conclusion that a country maximizes its gains from foreign trade if it specializes entirely in the production of a product in which it has a comparative advantage. In reality, such full specialization does not occur, which is explained, in part, by the fact that replacement costs tend to increase as output increases. Under conditions of increasing replacement costs, the factors that determine the direction of trade are the same as under 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 costs of substitution are leveled off.

It follows that, as food production and ready-made clothing increase in specialization and production, a point will be reached at which the ratio of costs in the two countries equalizes.

In this situation, the reasons for deepening specialization and expanding trade - differences in the ratio of costs - exhaust themselves, and further specialization will not be economically feasible.

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 products, can be of universal significance.

A serious drawback 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 sorts of balance of payments problems. It proceeds from the fact that if workers leave one industry, they do not turn into chronically unemployed, but will certainly move to another, more productive industry. Not surprisingly, this abstract theory was heavily compromised during the Great Depression. Some time ago, her prestige began to recover again. In a mixed economy based on the theory of neoclassical synthesis, which mobilizes modern theories of chronic recessions and inflation, the classical theory of comparative advantage regains public importance.

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

Heckscher-Ohlin's Theory of International Trade

The theory of comparative advantage leaves aside the key question: what causes cost differences between countries? The Swedish economist E. Heckscher and his student B. Ohlin tried to answer this question. According to them, the differences in costs between countries are mainly due to the fact that the relative endowment of countries with factors of production is different.

According to the Heckscher-Ohlin 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 a global scale.

It should be emphasized that we are not talking here about the number of factors of production available to countries, but about their relative availability (for example, the amount of cultivable land per worker). If in a given country there is relatively more of a factor of production than in other countries, then its price 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, which determine the direction of foreign trade.

The Heckscher-Ohlin theory successfully explains many of the patterns observed in international trade. Indeed, countries export mainly products, the costs of which are dominated by their relatively excess resources. However, the structure of production resources at the disposal of the industrialized countries is gradually leveling off. In the world market, the share of trade in "similar" goods between "similar" countries is increasing.

Leontiev's theory of international trade

The famous American economist Wassily Leontiev in the mid-1950s. made an attempt to empirically test the main conclusions of the Heckscher-Ohlin theory and came to paradoxical conclusions. Using the input-output intersectoral balance model built on the basis of data on the US economy for 1947, V. Leontiev proved that relatively more labor-intensive goods prevailed in American exports, while capital-intensive goods dominated in imports. This empirically obtained result contradicted what the Heckscher-Ohlin theory suggested, 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 have made it possible to develop and enrich the Heckscher-Ohlin theory by taking into account additional circumstances that affect international specialization, among which the following can be noted:

the heterogeneity of production factors, primarily the labor force, which can vary significantly in terms of skill levels. From this point of view, the exports of industrialized countries may reflect a relative excess of highly skilled labor and specialists, while developing countries export products that require large inputs of unskilled labor;

state foreign trade policy, which can restrict imports and stimulate domestic production and exports of products of those industries that intensively use relatively scarce production factors.

Alternative theories of international trade

In recent decades, significant shifts have taken place in the directions and structure of world trade, which are not always amenable to exhaustive explanation within the framework of classical trade theories. This encourages both the further development of existing theories and 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) the ever-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 world trade attributable to intra-company trade. Consider alternative theories.

The essence of the product life cycle theory is as follows: the development of world trade in finished products depends on the stages of their life, that is, the period of time during which the product has viability in the market and ensures the achievement of the seller's goals.

The product life cycle covers four stages - introduction, growth, maturity and decline. The first stage is the development of new products in response to emerging needs within the country. Therefore, the production of a new product is small-scale, requires highly skilled workers and is concentrated in the country of innovation (usually an industrialized country), while the manufacturer occupies an almost monopoly position and only a small part of the product enters the foreign market.

In the growth stage, the demand for a product grows and its production expands and gradually spreads to other developed 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. The shift of production to developing countries begins, where cheap labor can be effectively used in standardized production processes.

As the product life cycle enters the decline stage, demand, especially in developed countries, is reduced, production and sales markets are concentrated mainly in developing countries, and the country of innovation becomes a frequent importer.

The product life cycle theory quite realistically reflects the evolution of many industries, but is not a universal explanation for the development of international trade. If research and development, advanced technology cease 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, such as cheap labor. However, there are many products (with a short life cycle, high transportation costs, significant opportunities for differentiation in quality, a narrow circle of potential consumers, etc.) that do not fit into the life cycle theory.

The theory of scale effect. In the early 80s. P. Krugman, K. Lancaster and some other economists 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 costs 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 among themselves if they specialize in those industries that are characterized by the presence of the effect of mass production. In this case, specialization allows you to expand production volumes 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 capacious market is needed. International trade plays a decisive role in this, as it allows expanding 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, consumers are offered more products and at lower prices.

At the same time, the realization of economies of scale, as a rule, leads to a violation of perfect competition, since it is associated with the concentration of production and the consolidation of firms that turn into monopolists. Accordingly, the structure of markets is changing. 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-company trade, the directions of which are often determined not by the principle of comparative advantage or differences in the availability of factors of production, but by the strategic goals of the company itself.

Bibliography

For the preparation of this work, materials from the site http://matfak.ru/

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 a process of buying and selling between buyers, sellers and intermediaries in different countries.

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

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

Mercantelist theory of international trade.

Of the theories of international trade, the mercantilist theory was the first to appear, developed and put into practice in the 16th-18th centuries. Thomas Maine and Antoine Montchretien were prominent representatives of this school. 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 should limit imports (except for the import of raw materials) and try to produce everything itself, as well as encourage the export of finished products in every possible way, seeking an influx of currency (gold). The influx of gold into the country as a result of a positive trade balance increased the opportunities for capital accumulation and thus contributed to the economic growth, employment and prosperity of the country.

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

A. Smith's theory of absolute advantages.

From a completely different premise (compared to the mercantilist theory) came the theory of absolute advantages. Its creator, Adam Smith, begins the first chapter of his famous book, An Inquiry into the Nature and Causes of the Wealth of Nations (1776), by saying that "the greatest progress in the development of the productive power of labor, and much of the art, skill, and intelligence with which he directed and applied, were, apparently, the result of the division of labor", and further concludes 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 with some part of the product of our own industrial labor applied in that area in which we have some advantage.

The theory of absolute advantage states that it is expedient 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 those of foreign countries, i.e. there are absolute benefits. In contrast to the mercantilists, A. Smith advocated freedom of 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-intervention of the state in the economy.

The strongest side of the theory of absolute advantages should be attributed to the fact that it demonstrates the advantages of international trade for all its participants, to the 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 this: 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 products, can be of universal significance.

Thus, the theory of relative advantage recommends that a country import that good whose production costs in the country are higher than for the exported good. 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 advantage of the theory of comparative advantage is the convincing evidence that international trade is beneficial to all its participants, although it may give less benefit to some, and more to others.

The main drawback of Ricardo's theory can be considered that it does not explain why comparative advantages have developed. A serious drawback of the theory of comparative advantages 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 sorts of balance of payments problems. The theory proceeds from the fact that if workers leave one industry, they do not turn into chronically unemployed, but move to another industry that is more productive.

Theory of ratios 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 Ohlin 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 later supplemented by other economists, the Heckscher-Ohlin theory draws attention to the different endowment 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 compared to other, less represented factors. The production of any product requires a combination of factors, and a product whose production is dominated by relatively cheap, surplus factors will be relatively cheap both at home and in the foreign market, and thus will have a comparative advantage. According to the Heckscher-Ohlin theory, a country exports those goods, the output of which is based on factors of production that are surplus to it, and imports goods, for the production of which it is less endowed with factors of production.

Leontief's paradox.

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

The so-called Leontief paradox has the following explanations:

a highly skilled American workforce requires a large investment of capital to prepare it (ie, American capital is invested more in human resources than in production capacity);

the production of American exports consumes large amounts of imported mineral raw materials, in the extraction of which American capital was invested.

But in general, the Leontief paradox is a warning against the straightforward use of the Heckscher-Ohlin theory, which, as its subsequent testing has shown, 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 the processing of raw materials (metallurgy, chemistry) and a number of advanced technologies (mainly in the production of weapons and dual-use goods ) explain the greater export of raw materials, simple metallurgical and chemical products, military equipment and milking goods.

At the same time, the Heckscher-Ohlin theory does not answer the question why little agricultural products are exported from modern Russia with its huge 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 causes of international trade in certain goods, it is not enough just to have different endowments of countries with factors of production. It is also important how effectively these factors are used in a particular country.

Theory of competitive advantages.

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 connected with the answer to the question: how do individual firms of specific countries get 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 the study of the practices of companies in 10 leading countries, which account for almost half of world exports, he put forward the concept of "international competitiveness of nations". The competitiveness of a country in international exchange is determined by the impact and interconnection of four main components:

factor conditions;

demand conditions;

the state of service and related industries;

strategy of the company in a certain competitive situation.

Factor conditions are determined by the presence of economic factors, including those arising in the production process (increase in 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 decisive for the development of the company. At the same time, the state of domestic demand, in conjunction with the potential opportunities of the external market, decisively influences the firm's situation. Here it is important to identify national characteristics (economic, cultural, educational, ethnic, traditions and habits) that affect the company's exit from the country. M. Porter's approach assumes the prevailing importance of the requirements of the domestic market for the activities of individual companies.

Third - the state and level of development of service and related industries and industries. Availability of appropriate equipment, close contacts with suppliers, commercial and financial structures. Fourth, the firm's strategy and competitive situation. The market strategy chosen by the firm and an organizational structure that provides the necessary flexibility are important prerequisites for successful entry into international trade. Sufficient competition in the domestic market is a serious incentive. Artificial dominance through state support is a negative solution that leads to waste and inefficient use of resources. The theoretical premises of M. Porter served as the basis for developing recommendations at the state level to increase the competitiveness of foreign trade goods in Australia, New Zealand and the USA 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 are not always amenable to exhaustive explanation within the framework of classical trade theories. This encourages both the further development of existing theories and the development of alternative theoretical concepts. The reasons for this are as follows: 1) the transformation of technological progress into the dominant factor in world trade; 2) the growing share in trade of counter deliveries of similar industrial goods produced in countries with approximately the same supply of production factors; and 3) a sharp increase in the share of world trade attributable to intra-company trade. Let's look at some alternative theories.

Theory of the product life cycle.

The essence of the product life cycle theory is as follows: the development of world trade in finished products depends on the stages of their life, i.e. the period of time during which the product has viability in the market and ensures the achievement of the goals of the seller.

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

The theory of scale effect.

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, the 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.

The traditional and more developed form of international economic relations is foreign trade. Trade accounts for about 80% of the total volume of international economic relations.

For any country, the role of foreign trade can hardly be overestimated. According to J. Sachs, "the state success of any country in the world is based on foreign trade. Not a single country has yet managed to create a healthy economy, isolated from the world economic program." Through trade, countries are able to specialize in several key areas of the economy. they have the opportunity to import products that they do not produce themselves. In addition, trade contributes to the spread of new ideas and technologies.

Modern theories of international trade have their own history. The question is why do countries trade with each other? - was set by economists simultaneously with the emergence in the early 17th century. early schools of economic thought.

International trade is a form of communication between producers of different countries, arising on the basis of MRI, and expresses their mutual economic dependence. International trade is the total turnover between all countries of the world. Each state faces a choice in determining the main non-state national policy in the field of foreign trade, which in general can be defined as a choice between free trade and protectionism. The need for choice involves the study of the theory of this issue. The main classical theories of international trade are:

1. Mercantilist theory.

2. The theory of absolute advantages.

3. The theory of comparative advantage.

4. The theory of the ratio of factors of production and how its refutation of the Leontiev paradox.

Mercantilist theory. It arose in the era of great geographical discoveries, when the discovery of new lands with their natural resources (the main one was gold) led to the seizure of territories, the formation of colonies. The national economies of Europe were strengthened by capturing new territories and dividing spheres of influence.

Mercantilists (Thomas Man (1571-1641), Charlie Davinant, John Baptiste Colbert, William Petty) were the first to propose a coherent theory of international trade. They believed that the wealth of countries depends on the quality of the gold and silver they possess, and they believe that:

1) should withdraw more goods than enter, this will ensure the influx of gold as payments, which will increase domestic production, domestic spending and increase the level of employment of its population.

2) to regulate foreign trade in such a way as to increase the share of exports and reduce the share of imports; the purpose of such regulation is to obtain a positive trade balance with the help of tariffs, quotas and other instruments of trade policy.

3) the need to prohibit or strictly organize the export of raw materials and allow duty-free imports of raw materials. This was supposed to allow the accumulation of gold reserves in the country and keep export prices for finished products low.

4) it is necessary to prohibit all trade of the colonies with other countries, except with the mother country. Such a situation will undoubtedly ensure only the mother country the right to sell colonial goods abroad, and the colonies will turn into suppliers of raw materials and materials.

According to the mercantilist theory, the wealth of one country can only be increased at the expense of the impoverishment of another; the growth of wealth is only possible through redistribution. In order to provide the state with a worthy place in the world, a strong state machine is occupied, which includes the army, military and merchant fleet and which can provide superiority over other countries.

One of the first critics of the mercantilist theory was the English economist David Hume. (The inflow of gold as a result of a positive trade balance will increase the money supply within the country and lead to an increase in wages and prices. As a result of rising prices, the country's competitiveness has decreased, etc.).

The theory of absolute advantages.(Chief Representative Adam Smith). According to this theory, international trade is profitable if two countries trade in goods that each country produces at a lower cost than the partner country. Countries export those goods in the production of which they have advantages, and import those in the production of which the advantage belongs to their trading partners. In accordance with the views of A. Smith:

1) the government should not interfere in foreign trade, but should maintain a free trade regime;

2) states and individuals should specialize in the production of those goods in the production of which they have advantages, and trade them in exchange for goods in the production of which they do not have;

3) foreign trade stimulates the development of labor productivity by expanding the market outside the state;

4) export is a positive factor for the economy, because ensures the sale of surplus products; export subsidies are a tax on the population and lead to higher domestic prices and should therefore be abolished.

The theory of absolute advantage is that countries export goods that they produce at lower cost and import goods that other countries produce at lower cost.

The theory of comparative advantage. Ch. representative - David Ricardo. The theory of comparative advantage is that countries specialize in the production of those goods that they will produce at a relatively lower cost compared to other countries. In this case, trade will be mutually beneficial for both countries, regardless of whether production in one of them is absolutely more efficient than in the other. The price of an imported good is determined by the price of the good that must be exported to pay for the import, so the final price ratio in trade is determined by the domestic demand for the goods in one of the trading countries. As a result of trade based on comparative advantage, one of the countries receives a positive economic effect, called the gain from trade. The gain from trade is the economic effect that each of the countries participating in trade receives if it specializes in trade in the product in the production of which it has a relative advantage.

Theory of the ratio of factors of production.(Representatives - Henscher and Ohlin). Essence - the difference in the relative prices of goods in different countries, and therefore, economic trade between them is explained by the different relative endowment of countries with production factors. Each country exports those goods for the production of which it has a relatively surplus of factors of production, and imports those goods for the production of which it experiences a relative shortage of factors of production. International trade leads to the equalization of absolute and relative prices not only for goods, but also for factors of production in trading countries.

The theory of different relative endowment with factors of production as a basis for international trade is presented in the form of two interrelated theorems: the Heckshir-Ohlin theories and the theories of leveling prices for factors of production (P. Samuelson).

Leontief's paradox. Numerous empirical tests have cast doubt on the Heckscher-Ohlin theory.

Leontief's paradox lies in the fact that, contrary to theory, labor-saturated countries export capital-intensive products, while capital-saturated countries export labor-intensive ones. However, Leontief's paradox left numerous questions unanswered, and other empirical studies that took into account the skill composition of the labor force and covered a wider range of countries confirmed the validity of the theory of comparative advantage. But the Leontief paradox continues to serve as a serious warning against the straightforward use of the Heckshir-Ohlin theory.