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Labour Unions and the Theory of International Trade

1st Edition - July 1, 1991

Authors: M.C. Kemp, N. van Long, K. Shimomura

eBook ISBN:

9 7 8 - 1 - 4 8 3 2 - 9 5 3 5 - 0

This book provides a theory of trade between countries in at least one of which the pattern of competitive markets is disturbed by a powerful national labour union and in which,… Read more

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This book provides a theory of trade between countries in at least one of which the pattern of competitive markets is disturbed by a powerful national labour union and in which, therefore, wage distortions are endogenous; the book then proceeds to re-examine the several comparative-equilibrium questions of conventional trade theory. In addition, several questions are confronted which can be posed only in the new framework.In Chapters II and III, two well-known models of production and trade are taken. In Chapter IV the analysis of Chapter II is reconsidered under the assumption that there is a strong labour union in each trading country. Chapters V-VII broaden the scope of analysis by allowing for capital accumulation and its interaction with union policies.