ABSTRACT
This chapter is primarily concerned with the basic or more conventional theories which set out the gains which countries can expect from specialising in those activities in which they are relatively efficient. These constitute necessary 'building blocks' for understanding the more esoteric models which have been developed in recent years, which take into account some of the complexities of trade in today's world. The main concern of the classical economists in their writings on the subject of international trade was to debunk popular misconceptions about trade that had arisen, largely, due to the writings of a group of scholars known as the Mercantilists. The Ricardian model is important for demonstrating the benefits from two countries engaging in trade.
