Chapter 1 Classical Theories of International Trade 1.1 Mercantilism 1.2 Trade Based on Absolute Advantage: Adam Smith 1.3 Trade Based on Comparative Advantage: David Ricardo 1.3.1 An Example of Comparative Advantage 1.3.2 Gains from Specialization and Trade with Comparative Advantage 1.3.3 Comparative Advantage in Money Terms 1.4 Comparative Advantage and Opportunity Cost 1.4.1 Gains from Specialization and Trade with Opportunity Costs 1.4.2 Production Possibilities Frontier and Constant Opportunity Costs 1.4.3 Trade under Increasing Opportunity Costs 1.5 Comparative Advantage with More Than Two Commodities and Countries 1.5.1 Comparative Advantage with More Than Two Commodities 1.5.2 Comparative Advantage with More Than Two Countries 1.6 Theory of Reciprocal Demand 1.7 Offer Curve and Terms of Trade 1.7.1 Offer Curve 1.7.2 Equilibrium Terms of Trade 1.7.3 Other Concepts of the Terms of Trade Chapter 2 New Classical Theories of International Trade 2.1 Specific Factor Model 2.2 Factor Endowment Theory (H-O Model) 2.3 Other New Classical Theories 2.3.1 Rybczynski Theorem 2.3.2 Factor Price Equalization Theory 2.3.3 Stolper-Samuelson Theorem 2.3.4 Explaining Wage Inequality 2.4 Leontief Paradox Chapter 3 Modern Trade Theories 3.1 Existence of Intraindustry Trade 3.2 Technological Gap, Product Life Cycle and International Trade 3.2.1 Technological Gap Theory 3.2.2 Product Life Cycle Theory 3.3 Theory of Overlapping Demands 3.4 Economies of Scale, Imperfect Competition, and International Trade 3.4.1 Economies of Scale and International Trade 3.4.2 Monopolistic Competition and Trade 3.5 Reciprocal Dumping Model 3.5.1 Economics of Dumping 3.5.2 Reciprocal Dumping Chapter 4 Tariffs and Nontariff Barriers 4.1 Theories for Trade Protection 4.1.1 Infant Industry Argument 4.1.2 Terms of Trade Argument 4.1.3 Domestic Market Failure Argument 4.1.4 Strategic Trade Policy 4.2 Tariffs 4.2.1 Types of Tariffs 4.2.2 Effective Rate of Protection 4.2.3 Tariff Welfare Effects