- 1 The Gains from Trade 804
Interpersonal, Interregional, and International Trade 805
Illustrating the Gains from Trade 806
The Gains from Trade with Variable Costs 811
Sources of Comparative Advantage 814 - 2 The Determination of Trade Patterns 816
The Law of One Price 817
The Pattern of Foreign Trade 818
Is Comparative Advantage Obsolete? 819
The Terms of Trade 821
Summary 824
Key Concepts 824
Study Exercises 825
Chapter 33 Trade Policy 828
- 1 Free Trade or Protection? 829
The Case for Free Trade 829
The Case for Protection 830
Invalid Arguments for Protection 833 - 2 Methods of Protection 836
Tariffs 837