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This trade theory suggests that mobility of factors of production is limited across industries, leading to different effects of trade on income distribution within countries.

Based on David Ricardo's theory of comparative advantage, it suggests international trade is governed by technological differences across countries.

An empirical observation by Wassily Leontief which found that the United States, with its capital abundance, exported more labor-intensive commodities and imported more capital-intensive goods, contrary to Heckscher-Ohlin model predictions.

Empirical model that predicts bilateral trade flows based on the economic sizes (masses) and distance between two units. Often attributed to Jan Tinbergen.

Also known as the Heckscher-Ohlin theory, it states that countries will export goods that make intensive use of locally abundant factors and import goods that use locally scarce factors.

Developed by Raymond Vernon, the theory suggests that the location of production of certain types of products shifts as they go through their lifecycle, from new to mature to standardized products.

This theory builds on the New Trade Theory, incorporating the role of firms, not just industries, in international trade and acknowledges varying productivity levels among companies.

Economic theory where a country seeks to amass wealth through trade with other countries, exporting more than importing. Key proponent: Thomas Mun.

Introduced by Michael Porter, it is a model that attempts to explain the competitive advantage some nations or groups have due to certain factors available to them.

Proposed by Eli Heckscher and Bertil Ohlin, this theory posits that countries will export products that use their abundant factors of production and import those that use scarce factors.

A theory by Adam Smith stating a country should produce goods where it's more efficient than other countries.

Introduced by David Ricardo, this theory states that countries should specialize in the production of goods for which they have a lower opportunity cost.

Developed by economists such as Paul Krugman, it describes the role of economies of scale and network effects in trade and how they can lead to monopolistic competition.

Proposed by Staffan B. Linder, this theory postulates that countries with similar demand structures are more likely to trade with each other, focusing on the demand side of trade rather than just supply factors.