INTERNATIONAL TRADE - ECON 4431W

Textbook: INTERNATIONAL ECONOMICS by Appleyard and Field (9th edition; McGraw Hill)

Question 4

Compare the Theory of Comparative Advantage with the Neo Classical Theory.

Explain the Autarky and Free Trade equilibriums in both; give diagrams and explain what happens when the country moves from Autarky to Free Trade and explain the gains from trade in both these theories using concepts and trade theories explained with drawing diagrams.