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Abstract

Foreign trade theories goal to analyze why nations make trade, what kind of gains they attain, to calculate compound and volume of movement of international goods and services, and also to explain how they can effect domestic national product. New advancements occurs in international trade cause not to explain the foreign trade phenomenon with traditional foreign trade theories. In this study, evolution of foreign trade theories from Mercantilism to current was analyzed, new foreign trade theories like skilled labor, monopolistic competition, intra-industry trade, scale economies, similarity in preferences, technological gap, product cycle, product differentiation, competitive advantage which related to explain foreign trade were managed to present.

Foreign trade theories goal to analyze why nations make trade, what kind of gains they attain, to calculate compound and volume of movement of international goods and services, and also to explain how they can effect domestic national product. New advancements occurs in international trade cause not to explain the foreign trade phenomenon with traditional foreign trade theories. In this study, evolution of foreign trade theories from Mercantilism to current was analyzed, new foreign trade theories like skilled labor, monopolistic competition, intra-industry trade, scale economies, similarity in preferences, technological gap, product cycle, product differentiation, competitive advantage which related to explain foreign trade were managed to present.