Abstract

In this paper we try to explain how well trading models in general can be used for international arms trading. We will study the evolution of the main models throughout history in order to see in what ways they may be adequate to explain the security and defence material trading, mainly we will focus in the Heckscher-Ohlin model. In order to understand military equipment trading, we are going to analyze the industry’s composition, studying the cases of the main exporters and importers, and what motivates them to go one step further from the mere production of Goods, towards international trading, while taking into consideration the main ways of exporting a product and the regulations it may face.

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