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n. Smith’s absolute interest theory and free trade thought are in line with his entire theoretical system. The main purpose of his theory was to speed up the development of capitalism economy in Britain. At that time, Britain was the world’s most developed industrial country and had overwhelmed its competitors in the world market. The free trade theory of Smith’s was precisely to consolidate and strengthen the advantageous position of British industrial bourgeois, and to offer grounds to expand foreign market on a unstopping basis.

4.  David Ricardo’s thoughts on international trade and economic growth

David. Ricardo is the master of classical political economics. He demonstrated various advantages that free trade may bring based on his economic theory. Firstly, free trade could allocate the resources owned by one country and by the world more effectively. He said, “under the system with completely free commerce, each country will spend its capital and labor on the application which is most favorable to the country. This pursuit of individual interest better combines with the overall common happiness. Encouraging and rewarding ingenuity and making most of different kinds of special power that the nature bestowed makes labor gain the most effective and most economic allocation; at the same time, the increase of total production offers all people with benefits and integrates various nations in the civilized world into an united society with interest relations and mutual association as ties.” Secondly, foreign trade could cease rise of wages, thus improving the profit rate, increasing capital accumulation and promoting the increase of national wealth. Due to the limited land quantity and differences in quality, the reward of agricultural production would decrease, which would result in the increase of wages. “If wages do not decline, profits will never be promoted”, which result in lack of capital accumulation, therefore, this reward decreasing rule would constrain the development of national economy. He believed although technical progress could partly offset this decreasing trend but to agriculture in the long-term run, agriculture reward was unavoidable. He held that with the expansion of foreign trade, food and necessities of the laborers could be sent to the market with a relatively lower price and in this way, natural price of labor would be decreased and wages would be dropped continuously, thereupon, the profit rate would be improved relatively.

Ricardo’s free trade theory served for British emerging bourgeoisie as well. His theory is more comprehensive and persuasive compared with that of Smith. Relative advantage theory offered a theoretical basis for all the countries in the world including the undeveloped countries to participate the international trade, which was completely in conformity with the interests of Britain at that time. In the Ricardo age, Britain had finished industrial revolution and the manufacturing costs produced in this country not only relatively but also absolutely declined. Free trade could help Britain maintain an advantageous position in the international economic pattern in which Britain output manufactured goods to other countries while other countries exported raw materials as an economic appendage of Britain.

7. D.H.Robertson and Nox’s views that trade acts as the engine for economic growth

Dennis H.Robertson (1938), the British economist believed that 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。