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Different Trade Theories Developed Overtime
Trade Theories developed overtime
First trade theory was developed during the period 1500-1800 by the group of writers called mercantilists who found that with the help of foreign trade, nation can regulate its domestic and international affairs. According to the mercantilists, if a country could achieve a surplus of exports over imports then it will raise the domestic output and employment of the country. But, later on this theory was not successful to hold as a true. This theory is applicable only for a short term economic advantages.…
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