This paper attempts to build up a Heckscher-Ohlin-Samuelson model of production and trade where capital is introduced … trade only nominal factor prices. International financial flows will not alter pattern of trade, but movement of labour and … much more than before. Introducing finance affects trade patterns with unemployment and especially with imperfect credit …

Adam Smith is commonly referred to as one of the first who thought of foreign trade in terms of an international … case for foreign trade on this basis. In this article, I will, in contrast, show that Smith does not understand foreign … trade as an international division of labour. Economic progress rather than international trade determines domestic …

This paper attempts to build up a Heckscher-Ohlin-Samuelson model of production and trade where capital is introduced … production with Ricardian fixed coefficient technology. Availability of finance does not affect production or pattern of trade … only nominal factor prices. International financial flows will not alter pattern of trade, but movement of labour and …