Trade Indifference Curves Development
The concept of using trade indifference curves within the analysis of international trade theory was significantly developed and popularized by J.E. Meade.
Key Contribution
- J.E. Meade utilized trade indifference curves in his seminal work, notably in "A Geometry of International Trade" (1952), to illustrate and analyze the gains from trade and the effects of changes in the terms of trade between countries.
- These curves represent different combinations of goods that yield the same level of national welfare or utility, allowing for graphical analysis of trade patterns and benefits.
Comparison with Other Economists
- While economists like Alfred Marshall (A. Marshall) laid groundwork in general equilibrium and partial equilibrium analysis, and Bertil Ohlin (B. Ohlin) developed the Heckscher-Ohlin model focusing on factor endowments, the specific application and graphical representation using trade indifference curves are primarily associated with Meade.
- Abba P. Lerner (A.P. Lerner) is known for the "Lerner Paradox" and contributions to international finance and welfare economics, but not specifically for the development of trade indifference curves in this context.
Therefore, J.E. Meade is credited with developing the use of these curves in trade theory analysis.
Important Questions from International Trade
Consider the following statements about the international financial sources :
I. A Global Depository Receipt (GDR) is a bank certificate issued in more than one country for shares in a foreign country.
II. A GDR is very similar to American Depository Receipt (ADR).
Select the correct option.
Which of the following documents is not required for obtaining export license?
_________ was set up with prime objective of professionalizing the country’s foreign trade management by providing training, research and data dissemination.
Which one of the following does not fall within the ambit of WTO operations ?
The following statements relate to Restrictive Trade Practices (RTP). Choose the correct code for the statements being correct or incorrect.
Statement I: Often the low price is the result of the predatory pricing strategy; prompting selling at prices below cost.
Statement II: This is done with an aim to drive out existing competitors because predatory pricing is a restrictive trade practice.
