From the theory of A. Smith it followed that the factors of production have absolute mobility within the country and move to those regions where they receive the greatest advantage. However, after some time, the advantage of some regions over others may disappear, therefore, trade will also stop. David Ricardo developed the theory of absolute […]
Tag: Exchange
Mercantilism
For the first time, an attempt to determine the meaning of foreign trade, to formulate its goals, was made in the economic doctrine of mercantilists. Mercantilists (Thomas Moon, Charles Davenant, Jean Baptiste Colbert, William Petty) held a statistical view of the world, which, from their point of view, had only a limited amount of wealth. […]