By C.J. Rijnvos
Seen from a methodological viewpoint, the perform of financial technological know-how contains severe and theoretical considering. the explicit nature of those fields of research, their boundaries and mutual adjustment were lined by way of us l somewhere else. It grew to become obvious that severe considering goals at achieving a logical info description, simplifying social financial fact. in line with those facts, it's the activity of idea to find logical legislation in fiscal job, if this is often discovered in a rational demeanour - and this is often obviously a theoretical analytical situation. financial technology in line with this constitution could be noticeable within the diagram less than. A extra vast precis is equipped within the synopsis of 'valuation of financial science', on the finish of this research. 1. appraisal of monetary fact; 2. a logical constant description of knowledge as a foundation to idea; three. formula of traits in financial procedure. A technology pursued with this goal may perhaps fall brief in methods. within the first example, it really is attainable that the severe considering is just too a long way divorced from fact. the information from which during this example conclusions are made, are un practical; they're most likely too idealistic. during this means a foundation is laid for the 1. See our learn Waardering van het economisch denken. extra specific bankruptcy IV. 2 creation futile formula of legislation in a presupposed financial approach, as the conclusions of technology are very faraway from reality.
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Additional info for A new approach to the theory of international trade
A choice is now essential. Either the possibility of re-allocating the production means is absent, but EDGEWORTH 37 then the comparative cost theory does not apply, or the production functions at comparative cost differences already include a complete specialization at the beginning of the analysis. However, this would not be a case of sure analysis, when a complete specialization is assumed, whereas in fact its occurrence or non-occurrence must be explained. Methodologically only the first interpretation is acceptable.
Wemelsfelder, Internationale economische betrekkingen. Pg. 351. L. H. Janssen, Free Trade, Protection and Customs Union. Pg. 9-14. F. Benham, The Terms of Trade. G. von HaberIer, The Theory ofInternational Trade. Pg. 145 etc. M. C. Kemp, The Pure Theory ofInternational Trade. Pg. 44. IV. SUBSTITUTION OF FINAL PRODUCTS The considerations in the last chapter led to the conclusion that it is useful to differentiate between international trade without the possibility of reallocating production means and the situation when their re-allocation is possible.
The ideas of HaberIer, Stolper and Samuelson have been included in table 9 and figure 12 respectively through the simultaneous occurrence of the law of the non-proportional returns and changes in the factor relations per sector. The examination can be continued based on the concave transformation curves. C, 70 :r: t;P' "n iy ;:? D/ IA~ / V Cz 40 l~ Vi. , 40 Jc)J i, \\ - r-- ~ ~ ~ I'--.. i( h~ 20 I L_ '0 TT 30 20 10 Q 0 - 10 20 30 40 50 , ~b 60 70 TT 80 90 C;;; Fig. 12. Specialization of production and international trade; Heckscher/Ohlin-principle.
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