This paper develops a model of international trade based on comparative<br/>advantage and the division of labour. Comparative advantage in intermediate<br/>goods determines the extent of the division of labour, while the division of labour<br/>and comparative advantage in final goods lead to gains from trade....

This paper develops a many-good, many-country model of international trade<br/>which combines comparative advantage and external scale economies. It is shown<br/>that the gains from external scale economies outweigh those from comparative<br/>advantage as the number of goods increases. Small countries gain...