The Problems of Financing International Trade in Nigeria

The Problems of Financing International Trade in Nigeria

INTERNATIONAL TRADE THEORY

What is the essence of trade? Why do people and countries engage in trade between themselves? Why queue for foreign exchange. The theory formulated as far backĀ  as 1815, is usually conceded with Richards. The theory of comparative cost advantage is one of the oldest and still remains unchanged amongest economic theories. However, English classical economics has developed another theory classical economics has developed another theory, which is based on merchantilism. This was the bare of revolt between Adam Smith and Richards on English classical economics who was an off spring of liberalism and the enlightenment of the general philosophy that stressed the importance of individual and viewed the nation as nothing more than the sum of its inhibitants, for Smith and Richards, the supreme subject of economics was the consumers man laboured and produced in order to consume; and anything that could be consumed is worth labouring for. [Read more…]