ABSTRACT
THE transfer problem bulks large in the literature of international trade theory, both because international economic relations have abounded in transfer problems of various kinds and because the problem offers an attractive opportunity for the application of new theoretical techniques. My purpose here is not to survey the literature, 2 but to offer a straightforward and (it is hoped) simplified exposition of the theory of transfers in modern terms, based largely on recent literature but extending and unifying it in certain respects. In addition, it will be argued that transfer theory has a wider application than might appear at first sight and that, in particular, it can be applied directly to the problem of exchange stability.
