International Trade and Capital Mobility
在赫克歇尔-俄林模型中全面分析资本流动性，探讨关税和资本税如何影响贸易模式，并纠正了关税导致相对价格差异等于关税比例的错误认识。
It has long been recognized that commodity movements and factor movements are, to a degree, substitutes for each other in international exchange (see Carl Iverson, Mountifort Longfield, James Meade, Bertil Ohlin, John H. Williams). Yet, until recently, the dominant theory of international trade, the Heckscher-Ohlin (H-O) model, had been rather thoroughly analyzed under the rigid assumption of the immobility of factors. Only in 1957, with the publication of Robert Mundell's important article, was capital mobility in a H-O model explored. This paper presents a fuller treatment of capital mobility in the H-O model. We discuss the model under conditions of tariffs on goods flows and taxes on capital relocations. Nations may trade by exchanging goods or by exchanging their relatively abundant factors which produce those goods. We demonstrate that the substitutability between these two avenues of exchange continues to hold even under conditions of tariffs and taxes. The dynamics and equilibria are demonstrated, showing that a nation will pay for its imports either through exports of goods or through earnings on foreign-placed capital, not through both of these methods. Tariffs and tax rates will dictate which will occur, i.e., tariffs and taxes will be shown to affect the pattern of trade, not merely the quantities of commodities traded. We also correct a hitherto general and unrecognized error. We show that the levying of a tariff does not necessarily generate a relative price differential (of final goods prices) between the trading countries equal to the tariff proportion. The relative price differential will often be less than the tariff proportion, and this holds even though the good is still imported into the country. Further, contrary to previous results (see Ronald Jones 1967), we show that, generally, a tariff-cum-tax levy will not result in the complete specialization of production.