Introduction

In examining McCulloch's theory of international trade the first point which has to be recognized is that McCulloch never accepted the theory of comparative cost as expounded by Torrens and Ricardo.1 From McCulloch's earliest writings on trade the emphasis seems to be placed fairly clearly on absolute advantage. 'No commodity which can be raised at home will ever be imported from a foreign country, unless it costs a

i Robert Torrens, An Essay on the External Corn Trade, London, 1815, pp. 263-4; ibid., fourth edition, London, 1829, pp. 402-3; D. Ricardo, On the Principles of Political Economy and Taxation, Works, Vol. I, pp. 135-6.