ABSTRACT
Traditional general equilibrium international trade theory frames its conclusions within the setting of one of three models; the Ricardian or classical model wherein a single intersectorally mobile homogeneous factor (usually designated labor) is the sole factor of production; the Heckscher-Ohlin model which views the economy as endowed with at least two intersectorally mobile factors; and a model which allows for the presence of industry-specific as well as intersectorally mobile factors. In the single-factor Ricardian model, since there is but one source of income (from labor services) for all individuals in an economy, everybody gains from free trade and loses from protection. Thus no domestic coalitions arise that might seek to direct political activity at effecting a departure from free trade. However, the more structurally complex Heckscher-Ohlin and specific-factors settings identify gainers and losers from protection and point to coalitions that have conflicting interests regarding trade policy.
