The Structure of Foreign Trade.

World merchandise exports amounted to 5.3 trillion us dollars in 1997 and exports of commercial services amounted to 1.3 trillion. These are unpecedented volumes that have expanded much faster than income in the post-war period. More than half of the volume of merchandise trade flows amongst developed countries and less than 15% flows amongst developing countries. The rest, about one-third, represents North-South trade-- between developed and developing countries. What explains these large volumes of trade? Why do some countries export computers while others export footwear? Can exports of airplanes be explained in the same way as exports of paper products?