Scheme of the "competitive diamond" by M. Porter

The country will receive super-profits, or “technological rents”, until other countries copy its innovations. Posner’s model suggests that once an innovation has been copied, there is no point in trading it on the foreign market. In order to constantly trade in any product, it is necessary to ensure a “flow of innovations” in its production.

After considering the theories of international trade, the question arises: has each subsequent theory replaced the previous one and which theory explains the development of international trade at the present time?

In modern conditions , it is impossible to talk about the specialization of the country as a whole in accordance with any one theory. We can talk about the specialization of individual industries and individual firms in a given country. Moreover, none of the theories has lost relevance: some to a greater extent, while others to a lesser extent explain the trends in the development of modern world trade.

The final conclusion of international trade theory is that free trade can enrich all nations. Why, then, do many countries resist free trade by imposing all kinds of restrictions and barriers? The answer lies in the fact that while trade does enrich all nations as a whole, there will nevertheless be winners and losers of trade within each country in the real process. The winners will be mainly consumers and producers of exported goods. The losers will be producers and those employed in import-substituting industries. The process of removing all trade barriers could be too painful for most countries. Nevertheless, the gradual elimination of trade barriers, paving the way for a relatively smooth period of regulation, should be the goal of all states.