The years following WW‡U have witnessed new phenomena in international trade which can not be interpreted by orthodox theories. The two major new trends are intra-industry trade and enormous trade between industrialized countries. Disregarding traditional assumptions, economists, Paul R. Krugman as leading economist, put forward new theories and models with emphasis on increasing return to scale and imperfect competition to interpret why international trade happen, which develop and supplement the orthodox theories.
- international trade,
- economies of scale,
- imperfect competition,
- trade theories
Available at: http://works.bepress.com/he_shuquan/9/