Introduction

This introduction presents an overview of key concepts discussed in the subsequent chapters of the book. The book provides the latest accomplishments of the studies on Ricardo's theory of international trade. It expresses that under conditions in which the currencies of the two countries involved in foreign trade are non-convertible, the principle refers to a situation in which trade allows merchants to exploit arbitrage opportunities. The book presents a historical analysis of how Ricardo's development of international trade theory has resounded through the years, up to recent times. It focuses on the anonymous pamphlet Considerations on the Importation of Foreign Corn published in 1814, which contains the germ of the principle of comparative advantage and the associated gains from trade. The book also focuses on the cutting-edge of the research on Ricardian trade theory, where the contributors consider the characteristics of an international equilibrium in real/monetary terms.