LITERATURE REVIEW ON THEORIES OF INTERNATIONAL TRADE AND POLICIES BEHIND MODERN WORLD TRADE (original) (raw)

The essay aims to critically examine different theories proposed in the literature on international trade. Design/methodology/approach The essay is based on theoretical literature on the theories of international trade and working policies behind modern world trade globally Findings The essay discusses traditional international trade theories, mercantilist patterns, simplified models, new trade theories, strategic trade policies by advanced countries, FDI and technology role, and trade's impact on growth. It also discusses 21st-century theories, advocating for models that incorporate income inequality, political strategies, and real-world factors, and calls for models that incorporate income inequality and other real-world factors. Research limitations/implications The essay deals with only theoretical literature on international trade theories and policies. Findings and interpretation are subject to the theoretical development of international trade Originality/value The essay provided a critical explanation of international trade theories and tried to explain the paradigm shift in the theoretical framework of international trade.