[This paper extends the traditional analysis concerning the impact of factor accumulation on a country's terms of trade expounded in a two-by-two model to a world that consists of three countries, each producing three commodities with the help of three factors. It is shown that an "export-biased" factor growth must globally deteriorate the terms of trade of the expanding country--a result similar to that derived in the two-by-two model. An "import-biased" factor growth (of one factor only), however, will improve the growing country's terms of trade with respect to one country but worsen them with respect to the other. Consequently, the conventional view that an "import-biased" factor growth must raise the growing country's real income more than the rise in its output may not hold in a realistic world where trade is multilateral rather than bilateral.]

Journal Article Production Uncertainty and the Heckscher-Ohlin Theorem Get access Raveendra N. Batra Raveendra N. Batra Southern Methodist University, Dallas Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 42, Issue 2, April 1975, Pages 259–268, https://doi.org/10.2307/2296533 Published: 01 April 1975

Optimal policv in the presence of international trade and investment, which has been previouslIN analyzed by Murray Kemp and Ronald Jones (1967) in the context of a twofactor, two-good general equiilibrium model, constitutes the subject of analysis in a recent article in this Review byT Franz Gehrels. Gehrels' framework, which postulates a three-factor, two-good economy, differs from that of Kemp and Jones in format but not in substance. Nevertheless, Gehrels has made an important contribution by providing a more complete discussion of partial optimization and by deriving optimal tariffs and taxes in the presence of the interindustrv wage differential that characterizes factor markets in the underdeveloped countries. The objective of this note is to show that Gehrels' optimal policy in the presence of the wage differential is incomplete and that his modification of the optimum tariff formula is not always valid. The assumptions and notations used in this note are the same as those introduced bv Gehrels. The problem is to maximize the social utilitv function

Raveendra N. Batra, Rama Ramachandran; Tariffs, The Terms of Trade and Domestic Prices in a Monetary Economy, The Review of Economic Studies, Volume 47, Is

tinational corporation in the arena of economic activity and political influence, trade theorists have either ignored it or expressed unguarded skepticism at the ability of the conventional trade models to successfully capture and analyze the features of this new phenomenon.' The purpose of this paper is twofold: first, by building upon the contribution by Richard Caves, we will show that the traditional trade models can be adapted in a way that preserves most, if not all, of the attributes introduced by international firms.2 Second, we will conduct a comparative statics analysis to explore the implications of tariffs and taxes for resource allocation and international capital movements. Our results here confirm what has already been well established in myriad empirical studies, that maturation of the international firm has vastly increased economic interdependence among trading countries, and that few nations can eschew the ripples caused by economic policies of other nations.3

[Sufficient conditions (in terms of restrictions on individual preferences) have been already established in the literature for transitivity of simple majority decisions when individual preferences are quasi-transitive (but not necessarily transitive) and also for transitivity of multi-stage majority decisions when individual preferences are transitive. This paper establishes sufficient conditions for transitivity of multi-stage majority decisions when individual preferences are quasi-transitive, but not necessarily transitive. This constitutes a generalization of several results proved earlier.]