The theory of comparative cost has lately been replaced by more modern theories of international trade. This paper considers the relations between these different theories. Haberler's opportunity cost ...

`On Sunk Costs and Trade Liberalization in Applied General Equilibrium' (with J. Mercenier), International Economic Review 37, 3, 553-71, 1996. `Switzerland and the European Economic Area: A General ...

Neoclassical trade theory is largely based on the Heckscher-Ohlin (H-O) theorem. This proposition has survived all criticisms for many decades, and it is still the basis for orthodox free market trade ...

More information: Mikael Fauvelle, The Trade Theory of Money: External Exchange and the Origins of Money, Journal of Archaeological Method and Theory (2025). DOI: 10.1007/s10816-025-09694-9 ...

In addition to being trade-neutral in theory, the evidence suggests VATs are trade-neutral in practice. They certainly aren't an enormous rip-off justifying a global trade war.

First of all, the commitment to stimulate domestic demand in order to rebalance the structurally surplus trade balance ($823 billion in 2023, around €750 billion) is no longer on the agenda.