Classical International Trade Theories

In order to gain knowledge about the international trade history, you should be familiarized with the classical international trade theories. General speaking, the international trade is considered the processes that have been undertaken among the states including the processes for exchanging products, services and the whole production elements, with the aim of achieving their mutual benefits.
And that's according to rules that regulate the process of exports, imports exchange, the international movements of capitals, and the transportation of their owners among these states. In this regard, the World Trade Organization, and both the International Monetary Fund and the World Bank have been established for the completion of monetary regulatory triangle.
     

By the end of the course, participants will be able to:

What are the most prominent Classical International Trade Theories?
The economists in all states have divided into two groups. As for the first group, it believes that increasing the growth rate and raising the welfare level are associated with the liberalization of foreign trade; yet, this growth is related to certain terms. Meanwhile, the second group believes that the liberalization of foreign trade under the circumstances of states division into advanced and developing states will lead to the transformation of the economic surpluses of the weak states to the advanced ones through polarization mechanism. As a consequence, several classical international trade theories have emerged, which can be summarized in the rule that the state power is measured by how money it possesses, and there's no way of getting it only through the international trade. Accordingly, the state should be involved in all the spheres of economic life regardless of the restrictions and the obstacles faced by the international trade.