Further Topics in Trade Theory and Policy

Abstract

There are many topics in international trade which are too complicated to consider in detail in a book such as this. On the other hand, it is important that their existence is acknowledged and some attempt made to demonstrate their importance, and that reference be made to sources where they are considered in more detail. This chapter attempts to do that for five such topics: the extension of the standard trade models to include the possibility of non-traded goods; trade in intermediate goods; effective protection and domestic resource cost analyses as a means of quantifying the net effects of policies affecting many sectors of the economy; the particular problems caused by trade in services; and the analysis of policies directed towards stabilising prices.