Based on a many-industry Chamberlinian-Ricardian trade model with iceberg trade costs, this note examines the impact of two modes of economic integration: a reduction in trade costs, and technical standardization due to information spillover. It is shown that these two modes of economic...

Teaching trade patterns and trade gains under the Ricardian trade model is one of the most difficult tasks for teachers of international economics. We propose that the utilization of both the PPF and a labor market graph makes the understanding of Ricardian trade gains much easier