What are the main international trade theories

1, the classical school:

Classical theory of international trade arose in the mid-18th century, is in the critique of mercantilism on the basis of the development, including Adam Smith's theory of absolute advantage and David Ricardo's theory of comparative advantage, the classical theory of trade from the point of view of labor productivity explains the reasons for the emergence of international trade, structure and distribution of benefits.

2. Agrarianism:

The core idea of agrarianism is to advocate a free economy, including free trade, and they believe that the "natural order" (including free trade) is an important mechanism to ensure market equilibrium and price stability.

3. Absolute Advantage:

In "An Inquiry into the Nature and Causes of National Wealth" (Wealth of Nations), Smith pointed out that the basis of international trade lies in the existence of absolute differences in the productivity of labor and the cost of production among commodities of various countries, and that such differences arise from the natural endowments and acquired conditions of production.

4, protection of trade:

1841, the German economist Friedrich List (Friedrich List) in the National System of Political Economy put forward the theory of trade protection policy based on statism, pointing out that the protection system should be compatible with the degree of development of the national industry, also known as the theory of protection of infant industry.

5. Mutual Demand:

John Muller in the Principles of Political Economy, from the perspective of mutual demand, to determine the price of international exchange of goods to explain how the benefits of trade between the two countries are distributed. The theory of mutual demand essentially refers to the theory that the value of commodities is determined by supply and demand, and is a refinement and supplement to the theory of comparative advantage.

Baidu Encyclopedia - International Trade Theory