Immiserizing Growth: Trade Expansion and Welfare Loss
Immiserizing growth explains how export expansion can reduce welfare when a severe terms-of-trade loss outweighs the gain from higher output.
International Trade and Economics
Explore the world of international trade and economics with our expert articles
Specific Factors Model: Short-Run Trade Winners
Specific factors model analysis explains why trade creates clear short-run winners and losers when capital or land is tied to...
Lerner Diagram: Factor Prices in Trade Theory
Lerner diagram analysis shows how goods prices determine wages and capital returns through unit-value isoquants in trade theory.
Factor Price Equalization: Trade and Wage Convergence
Factor price equalization explains why trade can make wages and capital returns converge through goods prices, even when workers and...
Terms of Trade Economics: Prices and Welfare
Terms of trade economics explains how export prices, import prices, and trade purchasing power shape welfare in international trade.
Reciprocal Demand: Mill’s Trade Price Logic
Reciprocal demand explains how Mill’s trade theory determines the exact terms of trade inside the range created by comparative advantage.
Offer Curves and the Terms of Trade
An offer curve shows how much of one good a country will trade for another at each price. Where two...
Secondary Sanctions Explained
Secondary sanctions punish third parties for dealing with a target. They work through banks, insurers, and shippers rather than at...
Export Credit Agencies Explained
Export credit agencies insure and finance trades private banks will not touch. What they do, who runs them, and how...
Carbon Border Adjustment Mechanism (CBAM)
CBAM charges imports the EU carbon price to stop carbon leakage. Here is how it works, which sectors it covers,...