International trade or International economics is a branch of economics which is often referred as
‘applied economics’. Modern trade theory is essentially a branch of general equilibrium analysis. It is
firmly embedded in the Walrasian tradition. International trade theory is basically divided into two parts,
one is a pure theory or the classical theory of international trade and the other is the monetary theory of
international trade. The classical theory of trade is a part of price theory or micro-theory. Monetary theory
of trade or international finance or which is often referred as exchange-rate theory is thought to be macro-
the economic part of the trade theory. The classical theory of international trade deals with the aspect of the
exchange of goods and services between two or more countries. The monetary theory of international trade
deals with the determination of exchange-rates among the trading countries. Since it is an applied
economics, therefore, there are certainly many policy problems which are of empirical nature that the
subject has to elucidate.
The book purely serves the academic purpose and is a must pick up for Economics!