Search results
Results from the WOW.Com Content Network
Examinations of the Linder hypothesis have observed a "Linder effect" consistent with the hypothesis.Econometric tests of the hypothesis usually proxy the demand structure in a country from its per capita income: It is convenient to assume that the closer are the income levels per consumer the closer are the consumer preferences. [2]
International trade is the exchange of capital, goods, and services across international borders or territories [1] because there is a need or want of goods or services. [2] See: World economy .) In most countries, such trade represents a significant share of gross domestic product (GDP).
International trade theory is a sub-field of economics which analyzes the patterns of international trade, its origins, and its welfare implications. International trade policy has been highly controversial since the 18th century. International trade theory and economics itself have developed as means to evaluate the effects of trade policies.
Economic interdependence is the mutual dependence of the participants in an economic system who trade in order to obtain the products they cannot produce efficiently for themselves. Such trading relationships require that the behavior of a participant affects its trading partners and it would be costly to rupture their relationship. [ 1 ]
International trade studies goods and services flows across international boundaries from supply-and-demand factors, economic integration, international factor movements, and policy variables such as tariff rates and trade quotas.
People do not all have the same demand for present and future consumption, so if borrowing and lending are allowed the "price of future consumption", i.e., the interest rate, will emerge. [1] For the purposes of international economics, countries can be thought of in the same way as people.
The gravity model estimates the pattern of international trade. While the model’s basic form consists of factors that have more to do with geography and spatiality, the gravity model has been used to test hypotheses rooted in purer economic theories of trade as well. One such theory predicts that trade will be based on relative factor abundances.
A system of international trade has helped to develop the world economy but, ... price and demand. In real terms, the economy doubled in size between 1978 and 1986 ...