Abstract
This paper explains the origin, content and importance of a manuscript essay on “Foreign trade” which George Grote, the historian of Greece, submitted to David Ricardo in March 1819. By relating it to the contributions to foreign trade theory of Ricardo and of James and John Stuart Mill it is shown that Grote anticipated important elements of the “Sraffa-Yukizawa-Parrinello interpretation” of Ricardo’s cloth-and-wine example. By suggesting that comparative advantage-based trade is incompatible with the labour theory of value Grote also pointed to an apparent incongruity in Ricardo’s chapter “On Foreign Trade.” A transcription of Grote’s manuscript essay is provided in the appendix.
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