This paper examines the connection between a terms-of-trade improvement and the real wage rate for a country that is immersed in a trading world with many traded commodities as well as a non-tradeable. There is an array of commodities that are imported but not produced at home, and the price of...

In competitive international trade theory two of the basic models are the Specific Factors Model and the Heckscher/Ohlin model, with dimensionality 3×2 and 2×2 respectively. A surprising result in Heckscher/Ohlin is that the effect on factor prices of an infinitesimal change in a commodity...

Competitive International Trade Theory has frequently been criticized for its intensive use of diagrams (as opposed to more formal mathematics, such as calculus and algebra), prompted by its typical use of small dimensional models. This paper selects ten diagrams useful in capturing the essence...