International Trade and Growth

Irrespective of any government policies and theories, there is always a tendency for economic growth to occur . For instance, increases in population imply a growing labor force. Investment in new plant and equipment by firms implies a larger and larger capital stock. Likewise, technological advances in the world indicate that allow for higher efficiency in production. Thus, despite these general tendencies in economic growth over the world, international mobility of production factors and technological innovations were greatly influenced for development of the modern world.