We reconsider the economics of protection with an industry subject to increasing returns. Under strong comparative disadvantage in one country, any tariff-distorted equilibrium in which both countries produce the commodity must be unstable. In general, under strong comparative disadvantage, the...

We investigate the interplay, in international trade, between comparative advantage and increasing returns to scale that are external to the firm. We focus especially on "advantage reversals," where the country with a comparative-cost disadvantage in producing a good nevertheless is able to...

The paper gives a simple representation of how oligopoly affects the general theory of international trade. Three points are emphasized: the simplicity of trade under oligopoly in the Ricardian model; the equations describing the general equilibrium of a world economy with any number of goods,...