This work presents a new theory and approach to the rapidly changing ecomics of international trade, which challenges the prevailing neo-Keynesian point of view. From a theoretical perspective, the author exa mines the arguments of classical and neoclassical ecomists to develop the concept of dynamic disequilibrium with respect to the business cycle and its influence on a country's international trade position. Additionally, this concept is applied to multinational corporations and customs unions such as the European Community in their practical trade relationships. Beginning with an examination of the general contemporary problem of trade in an uncertain world, Rich moves on to review theories of international trade - the welfare utility function, the international utility function - and their applicability to the changing ecomic world. Particular attention is given to the rise of the European Ecomic Community an the role of multinational corporations in contemporary international trade.
DAVID Z. RICH serves as economic consultant to a number of business firms and international corporations. A resident of Israel since 1969, he is the author of Contemporary Economics: A Unifying Approach (Praeger, 1986), The Dynamics of Knowledge: A Contemporary View (Greenwood Press, 1988), and The Economics of Welfare: A Contemporary Analysis (Praeger, 1989).