How Far Can Foreign Trade and Customs Agreements Confer Upon Small Nations the Advantages of Large Nations?
The question posed by the title of this paper would have been meaningless for the classical economists. In their view the size of a nation did not matter and had no bearing whatever on international trade, provided the latter were completely free. In a famous example involving Portugal and Great Britain, Ricardo showed that it was always to the advantage both of a large country and of a small one to specialize and exchange their products. It is true that the classical economists abstracted even from the very existence of nations and that in their view ‘the nation is never understood as an exchange partner nor as lending support to exchange partners. The nation never acts as a group possessing its own behaviour pattern or structural preference; it is void of sociological content. Foreign trade is carried on by isolated individuals who are, however, subject to special conditions through belonging to different nations.’2
KeywordsDepression Europe Transportation Expense Dition
Unable to display preview. Download preview PDF.
- 1.Michel Moret, L’Échange international, ed. Marcel Rivière, Paris, 1957, p. 40.Google Scholar
- 1.George A. Duncan, ‘The Small State and International Economic Equilibrium’, Economia internazionale, November 1950, p. 937.Google Scholar
- 1.J. Wemelsfelder, ‘Some Problems Connected with the Establishment of a Common Market in Europe’, Economia internazionale, August 1954;Google Scholar
- Franz Gehrels and Bruce F. Johnston, ‘The Economic Gains of European Integration’, The Journal of Political Economy, August 1955;Google Scholar
- Tibor Scitovsky, ‘Economies of Scale, Competition and European Integration’, American Economic Review, March 1956.Google Scholar
- 1.J. E. Meade, The Theory of Customs Unions, North Holland Publishing Company, Amsterdam, 1955;Google Scholar
- H. Makower and G. Morton, ‘A Contribution Towards a Theory of Customs Unions’, Economic Journal, March 1953, pp. 33–49.Google Scholar
- 1.J. S. Bain, ‘Economies of Scale, Concentration and Entry’, American Economic Review, March 1954.Google Scholar