International Trade Theories and Decision-Making Areas in the Field of Development Strategy

Abstract

The article substantiates what really was, is and will be only four basic reasons for international trade: natural and geographical differences between states; differences in production costs in different countries; the effect of the country's specialization on the production of goods with a greater relative advantage; the effect of the scale of production, and the corresponding theories. All other "causes of international trade" mentioned in numerous publications are, at best, only camouflaged basic ones. There are four reasons for the possibility of 15 types of international trade for a single country or between two countries. None of the four causes of international trade is sufficient for it to occur, as only a reduction in the "resistance of distance" in the presence of at least one cause of international trade activates its potential. The article presents the author's concept of choosing a development strategy at the state or corporate levels, according to which the key determinants are distance resistance, nature of interaction with the environment (offensive or defensive) and the model of economic development (resource-based or knowledge-based).