Theory Of Comparative Advantage Research Articles

EFFECTS OF NON-TARIFF BARRIERS ON RWANDA’S INTERNATIONAL RELATIONS IN THE EAST AFRICAN COMMUNITY

The purpose of this study was to assess the effect of non-tariff barriers on Rwanda’s international relations in the East African Community. The study was guided by comparative advantage theory. Descriptive research design was used to achieve the study objectives. The target population for this study constituted 184 officials of Rwanda’s Ministry of Foreign Affairs and International Cooperation from whom a sample of 126 respondents was selected using stratified random sampling method. Data was collected using a questionnaire and was analyzed using descriptive, inferential and thematic content analysis techniques. Analyzed statistical data was presented using tables and charts while qualitative data was documented using narratives. This study concluded that Non-tariff barriers have a positive and significant effect on Rwanda’s International Relations in East African Community. From the findings, this study recommended that the government of Rwanda should continue supporting and advocating for trade liberalization within the EAC. This can be achieved through negotiations within the EAC's Common External Tariff (CET) framework.

Determinants of the embodied CO2 transfers through electricity trade within China

There is unequal spatial distribution of resource endowment, population density, industrial structure, and economic development with diverse differences in labor, energy, and capital productivities in China. However, previous studies paid little attention to the determinants of CO2 transfers embodied in electricity trade. In this study, we use both the absolute and comparative advantage theories to reveal the determinants of embodied CO2 transfers through electricity trade within China. Results show that China's electricity sector has higher labor productivity but lower asset efficiency and energy productivity than that of mining and manufacturing sectors. The large-scale electricity trade alleviates the shortage of electricity supply in developed regions by outsourcing to the less-developed regions, reduces the unequal spatial distribution of coal and natural gas reserves, and changes CO2 flow embodied in power grid. Econometric analysis shows that coal reserve contributes to the increase of embodied CO2 emission, while natural gas reduces the embodied CO2 emission. The regional differences in the opportunity cost of labor productivity of non-electricity sector are the dominant factor of the embodied CO2 transfers through electricity trade within China, while asset efficiency and energy productivity are not significant in the regressions. Our findings could provide details about China's power grid expansion when confronting climate mitigation in the future.

Trade Openness and Public Innovation: A Causality Analysis

The comparative advantage theory perspective has been extended to the public innovation and trade openness of OECD and Non-OECD countries by focusing on the role of tariff and asymmetric effect of trade openness by comparing imports and exports growth with the causal relationship among the respective factors. The study’s findings indicate that trade openness, innovation, and tariffs are linked in developing countries more than in developed countries due to the difference in economic perspectives and policies, which disprove the idea of the tariff being ineffective for developed nations. The causality effectiveness in developed and underdeveloped countries has resulted among public innovation toward openness of trade and tariff but not in case of tariff to trade openness. Additionally, the results hold up to sub-indicators and measures of public innovation, evaluating that input sub-index is more impactful than output sub-index, and both are even stronger in developing countries than developed countries. Finally, this study implied the usefulness of monetary policy to encourage the governments to lower import tariffs, paved the way to increased investment in research and development and collaboration between foundations, businesses, and academia. JEL Classification: H7, H8, O31, C26

Implementasi Perdagangan Ekspor Pisang Cavendish PT. Great Giant Pineapple (GGP) dengan Jepang pada Tahun 2022

This study aims to determine the implementation of the cavendish banana export trade at PT. Great Giant Pineapple (Indonesia) with Japan. The theory used in this study is the theory of comparative advantage according to David Ricardo, using qualitative research methods. The results showed that the implementation of the cavendish banana export trade by PT. Great Giant Pineapple (Indonesia) with Japan was realized through several stages, namely the purchasing stage which consisted of a purchasing order (PO), namely a document made to show the goods purchased, signing the SO and goods entering the warehouse. In addition, the sales stage which consists of sales orders (SO), travel documents, sales invoices, and receipt of accounts receivable, and finally, the export process stage which consists of stuffing goods, sending goods to the port to the destination country, namely Japan, then distributing it to buyers. . The documents needed in implementing PT GGP's export trade to Japan include the main documents, namely invoices, packing lists, shipping instructions, PEB and bills of lading, as well as supporting documents consisting of COO, health cert, and phytosanitary cert.

Reconstruction of Marx's Theory of Foreign Trade: How Rich Countries Got Rich

Ricardo's theory of comparative advantages is considered to be the only classical theory of foreign trade. In terms of Marx's six books, "Foreign Trade" was supposed to be the fifth book. But the logic of the model – from the abstract to the concrete – allows us to detect elements of the theory of foreign trade in the published volumes of Capital. In volume I, a provision is put forward according to which countries exporting high-tech goods increase national value wealth.Volume III examines at the national level the law of the average rate of profit, which is carried out by redistributing the value created in labor-intensive industries in favor of capital–intensive industries through prices: prices for labor–intensive goods decrease, and prices for capital–intensive ones increase.The law of the average rate of profit operates at the international level. The wealth of nonindustrial countries is redistributed in favor of industrial ones. The reconstructed theory of Marx explains «How rich countries got rich... and why poor countries stay poor» (E. Reinert).

ANALYZING THE SIGNIFICANCE OF PAKISTAN-INDIA TRADE

The study examines the significance of Pakistan-India trade, focusing on their trade potential, impediments to their bilateral trade; political barriers and non-tariff barriers. For seven decades, troubles and tensions in Pakistan-India relations have directly affected trade ties between the two countries. The unresolved issues, especially the dispute over Kashmir, which is the bone of contention between the two countries, continue to impede the normalization of relations between the two countries, thus leading to socio economic damage on both sides of the border and also hampering regional trade. India`s reluctance to resolve the issues through negotiations, along with its aggressive policies towards Pakistan, has always been a factor in creating political and non-tariff barriers to trade between the two countries. Currently, trade between Pakistan and India takes place through three channels: formal trade, illegal trade, and trade through third countries. Pakistan is at the gateway to Central Asia via the 350-km-long Wakhan Corridor and can play the role of a bridge between the two regions (South Asia and Central Asia). The study provides policy recommendations for enhancing formal trade between the two countries. The recommended policies have strong grounds for streamlining trade when viewed through the lens of Comparative Cost Advantage Theory and Heckscher-Ohlin Theory

Competitive advantage, relationship, and benefit: Primary and secondary influencing factors of supply chain collaboration in China's advanced manufacturing industry.

The advanced manufacturing industry is located at the top of the manufacturing value chain. Its development is restricted by supply chain collaboration (SCC), the level of which is affected by many factors. Few studies comprehensively summarize what influences SCC and distinguish the impact level of each factor. Practitioners have difficulty isolating the primary factors that affect SCC and managing them effectively. Therefore, based on synergetics and the theory of comparative advantage, this study analyzes what influences SCC in the advanced manufacturing industry and how these influencing factors work, using data from 94 manufacturing enterprises and the Haken model to identify the influencing factors. The results show that China's advanced manufacturing supply chain underwent a phase change and entered a new stage during 2017-2018. In the new stage, the competitive advantages of enterprises are one order parameter (slow variable) and are primary factors affecting SCC. The interest demands of enterprises are a fast variable and are secondary factors affecting SCC. The competitive advantages of enterprises dominate the interests of enterprises in affecting the collaboration level of China's advanced manufacturing supply chain. In addition, in the process of influencing SCC, there is a positive correlation between the competitive advantages of enterprises and the interest demands of enterprises, and the two factors have a positive feedback mechanism. Finally, when the enterprises in the supply chain cooperate based on their differential advantages, the collaboration capability of the supply chain is at the highest level, and the overall operation of the supply chain is orderly. In terms of theoretical contribution, this study is the first to propose a collaborative motivation framework that conforms to the characteristics of sequential parameters, which provides a theoretical reference for subsequent studies on SCC. In addition, the theory of comparative advantage and synergetics are linked for the first time in this study, and both of them are enriched and developed. Equally importantly, this study compares the bidirectional influence between firms' competitive advantages and firms' interest demands and the ability of both to influence SCC, enriching previous validation studies of unidirectional influence. In terms of practical implications, this study guides top managers to focus on the management practice of collaborative innovation in the supply chain and advises purchasing managers and sales managers on selecting supply chain partnerships.

Assessment of the importance of climate, land, and soil on the global supply for agricultural products and global food security: Evidence from Madagascar

Sub-Saharan Africa is home to 63.00% of the global food-insecure people (IPC/CH Phase 3 or above) and endowed with more than 50.00% of uncultivated land. The production environment in the region is subject to numerous constraints imposed by climate, physical infrastructure, and human activities. This study highlights the importance of countries’ natural endowment and crop-specific requirements, namely soil and climate characteristics, on agricultural trade and food security. To analyze the global supply of crops, we based our research on the comparative advantage theory with the factor endowment approach. We found that the climate in the tropical region lowered the soil quality and the agricultural productivity in the region. Compared to most developing Asian countries, least developed countries from Africa, including Madagascar, struggle with soil management which lowers their comparative advantage in the agricultural sector. We also found that the crops’ requirements give a comparative advantage to well-endowed countries. This research exposed that the climate and soil combined, along with the geography variables are important for the international trade pattern. It also brings light to the importance of international trade in the achievement of global food security. Our findings suggested that foreign direct investment (FDI) can be used to boost the global agricultural sector and improve global food security. For Madagascar in particular, we found that FDI could help the country sustain the global supply of spices, specifically vanilla, cloves, and cocoa.

NIGERIA BORDER CLOSURE AND THE ECOWAS PROTOCOL ON FREE MOVEMENT OF PERSONS, RESIDENCE AND ESTABLISHMENT AMONG MEMBER STATES: IMPLICATION FOR ECOWAS SUB-REGIONAL COHESION

This study was on the Nigeria border closure and ECOWAS protocol on the free movement of persons among member states: implications for sub-regional cohesion. Thus, the 2019 policy of Nigeria’s Government to close borders between its neighbours Benin Republic, Cameroon and Niger Republic was followed by the circular issued on 20th August 2019 and disseminated to all border security agents. The people living around border communities largely depend on cross-border trade for their survival, and closing the border has led to difficulty and hardship for those living around the border. On the other part, the government proclaimed that closing its border has numerous benefits and for security reasons which will ensure economic growth and development of Nigeria, whereas member states of the West African sub-region believed this action to be, an affront and counter-productive act to ECOWAS protocol on the free movement of goods and persons in the West African sub-region and for the sub-regional integration at large. Hence, the main objective of this paper was the assessment of the border closure and its implications on sub-regional cohesion. The research study made use of a secondary source of data collection and data from the secondary sources were subjected to qualitative content analysis, with the main purpose of assessing the implication of the border closure on the sub-regional integration as stipulated by the ECOWAS protocol. The Theory of Comparative Advantage as propounded by David Ricardo was adopted for the work. His notion significantly explained the theoretical exploration and analytical discussion of the need for a country to trade and relate with other countries in various ramifications with certain advantages especially when these countries are under a common economic bloc, as the case in ECOWAS. The findings showed among other things that the policy of border closure by the Nigeria government has so far been counter-productive, as other West African member states with particular reference to Ghana, have started rejecting and getting Nigerian goods out of their countries, thereby posing a serious threat to economic cohesion of the sub-region. The study recommended among others that the policy of border closure should always consider the poor people who are about 87 million in Nigeria and became subject to hardship following the closure of cross-border trade. And that such border closure was not necessary when the effort was being made to fully actualize the principles of the ECOWAS protocol as applied to all member states.<p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0215/a.php" alt="Hit counter" /></p>

Foreign Direct Investment in Neoclassical Theory of International Trade: A Conceptual Weak Spot

This article analyses the role of foreign direct investment (FDI) in neoclassical theory of trade with a focus on the relocation of production into low wage countries. The conceptual analysis shows that FDI not only constitutes a weak spot in comparative advantage theory, but also that the latter is incompatible with efficiency-seeking FDI—with significant implications for policy. In Ricardian and Heckscher-Ohlin models of trade, FDI is ruled out via the assumption of factor immobility. In models in which factor immobility is relaxed, the closest FDI comes to is a generic reference to capital imports and exports, which affect factor endowments and, therefore, comparative advantage. Due to the assumption that input factors are determined by wage-rental ratios, this leads to the condition that firms operating in advanced economies must produce more labor-intensively, if investing in facilities in low-wage countries. Efficiency and market-seeking FDI, which combines productive, capital-intensive modes of production with cheap labor to exploit unit labor cost differentials, is a theoretical and mathematical impossibility in this framework. This conceptual weakness questions the validity of conventional approaches to development policy, which largely rely on market liberalization and free capital mobility.

Competitiveness of Vietnam’s Frozen or Processed Tuna Export Industry in the United States and Canada Markets

Purpose: This study aims to assess the competitiveness of Vietnam’s frozen and processed tuna export industry (code 160414) in the US and Canada markets. Design/methodology/approach: In this study we used the Revealed Comparative Advantage index (RCA), export market share (MS) and export prices on a comparative basis with 9 of the 10 largest tuna exporters, and based on the theory of absolute advantage and comparative advantage to assess the competitiveness of the fish export industry tuna in the US and Canada markets. Findings: Research results show that the competitiveness of Vietnamese tuna in the US and Canada markets is quite high, second only to Thailand and is tending to increase. Originality/value: The research’s findings highlight the importance of enhancing product quality, catering to consumer demands in importing nations so that Vietnam’s tuna export products are in line with import market preferences, and taking advantage of opportunities provided by the CPTPP agreement to benefit from preferential tariffs when exporting to Canada in order for Vietnam to increase competitiveness and increase export scale in these two markets. To boost the competitiveness of Vietnam’s tuna export business, particularly for the US market, it is critical to have trade promotion solutions, extend trade cooperation to benefit from advantageous tariffs, and match the product needs of importing nations. The long-term objective for Vietnam’s tuna export sector must be for sustainable and effective development.

Research on International Trade Problems and Improvement Plans of China’s Photovoltaic Industry

In the context of global energy transformation, China’s photovoltaic industry has experienced explosive growth and two major crises. It has ushered in stable development amidst ups and downs, and has the advantages of industrial clusters, economies of scale and latecomer advantages. However, under the post-epidemic global new cold war situation, China’s photovoltaic industry is also facing many problems in international trade, such as international logistics obstruction, green trade barriers, low-price competition, local trade protection in target countries, and so on. This article will start from the comparative advantage theory to analyze the problem, and propose how to transform the comparative advantage into a competitive advantage to solve the problem, so as to enhance the competitiveness of China’s photovoltaic industry in international trade.

THE SMART SPECIALIZATION APPROACH THROUGH THE PRISM OF THE KEY PROVISIONS OF THE THEORY OF FREE TRADE: CONCLUSIONS FOR UKRAINE

The purpose of the article is to analyze the approach of smart specialization through the prism of key provisions of D. Ricardo's theory of comparative advantage, to identify its limitations for industrial weak countries and on this basis to identify key guidelines for the development of smart specialization strategies in Ukraine in view of the challenges of the postwar era. Materials and methods. The study is based on theoretical works of Ukrainian and foreign scientists on the problems of implementing the approach of smart-specialization in the practice of regional development. The work was carried out using the methods of systematization and generalization, analysis and synthesis, comparative analysis, and systematic approach. Results. The theoretical basis of the approach of "smart specialization" is revealed, the synthesis of economic schools, theories and concepts underlying this approach is defined. The insufficient theoretical development of its main provisions, which is negatively reflected in practice, especially in less economically developed countries and regions, was substantiated. It is concluded that the reasons for this lie, in particular, in the limitations of the Ricardian theory, on the provisions of which the smart specialization approach is based. It is emphasized that the Ricardian theory does not take into account the technological factor, which considers the technological base of the country as a constant, which does not give industrial weak countries an opportunity to change the raw material nature of their economy to a fundamentally new - innovative one. The historical retrospective traces the strategy of development of economically powerful countries in achieving their international competitive advantages, which is diametrically opposed to Ricardian theory. On the basis of this the key guidelines for the development of strategies of reasonable specialization in Ukraine in the post-war period of its reconstruction in order to prevent the preservation of the raw material nature of the national economy and its secondary position in the world are outlined. Conclusion. It is proved that post-war reconstruction of Ukraine should be aimed at radical changes in the structure of the economy, the transition from the agrarian-raw type to industrial-innovative type on the basis of creating a modern high-tech industry in the conditions of unfolding in the world of a new technological revolution.

US―China Green Trade Conflict and Implications for Low-Carbon Energy Transition: The Solar Energy Trade Dispute

Purpose - The purpose of this paper is to analyze the causes of Sino-U.S. solar PV trade disputes by adopting research, comparative research, and case study. It also proposes relevant resolutions over Sino-U.S. solar trade conflicts and the implications for low-carbon energy transition.
 Design/Methodology/Approach - Based on green trade protectionism and comparative advantage theory, this paper combines Chinese solar products export flows to the U.S. with cases of solar trade disputes from 2011 to 2022 to analyze the causes of Sino-U.S. solar trade conflict. Thus, from the perspective of international trade law, WTO reform on the relevant renewable energy agreements, international carbon border tax regime, and a bilateral clean agreement or EGA negotiations, it purposes the resolution of Sino-U.S. solar trade conflict.
 Findings - This paper studies factors leading to the Sino-U.S. solar trade conflict, which is mainly a bilateral trade imbalance, the game of interest groups within the US, non-standard support policies for Chinese solar energy industry, and geopolitical and national green energy security. There is no doubt that trade disputes had had a larger negative impact on Sino-U.S. solar trade flows from 2011 to 2019. Meanwhile, the solar PV trade policies of the US affected the global supply chain of solar PV products, thus hindering the progress of low-carbon energy transition.
 Research Implications - In the management of this paper, this study has important practical significance for the healthy and sustainable development of solar PV trade and achieving low-carbon energy transition for both countries. It can also provide references to solar energy trade disputes among other countries in a broader sense, and propose relevant recommendations for South Korea’s solar energy.

The Impact of Free Trade on GDP per Capita: The GCC Perspective

Free trade increases overall world production of goods and services and is a positive sum game in which all participating countries realize economic gains ,which is suggested in the theory of comparative advantage. Vast literature also uses cross-country regressions to search for empirical linkages between trade and income. However, research in the Gulf Cooperation Council (GCC) context remains limited; this study is an attempt to fill this gap by determining the correlation between trade freedom and GDP per capita for the six GCC countries over a period of 13 years (1999-2012). The evaluation of data from the GCC countries in this study demonstrates a strong correlation between KSA and UAE’s level of trade freedom (according to its Trade Freedom Index) and its GDP per capita. Exceptions to this trend taking into consideration the different sizes (economically and population) are Kuwait, Bahrain, Oman, and Qatar, as these nations of countries have experienced different economic systems and trade barriers. A cross-section regression models concludes that the convergence hypothesis is supported and their unique economic and repression tends to constrain the trade liberalization index influence on the economic growth.

2. PENCEGAHAN PRAKTEK KEJAHATAN EKONOMI DALAM PERDAGANGAN BEBAS – ORIGIN FRAUD DALAM INDUSTRI MEBEL KAYU DI JEPARA

Indonesia has been known to have abundant natural resources and culture-based creative industries.The country is therefore vulnerable to the practice of fraud of origin. One of many industrial sectorssusceptible to that particular crime is the wooden furniture businesses. In many cases, it is apparent thatnatural products and raw materials of Indonesia are being exported without listing the country as the place oforigin. The most common Indonesian material falls within this illegal practice are timber products. In theprovince of Central Java, Jepara has been a prominent center of timber industry producing high quality timberproducts and wooden raw materials. From a unique standpoint, the timber industry in Jepara is deeply rootedto the culture and identity of the natives, making the attempt to separate the discussion between timber industryand the people of Jepara not only imprudent but virtually impossible. By looking at the statistic in whichJepara’s public education level is assessed to be still below the national standard, and as well bearing to thegeneral fact that the timber actors in Jepara are more focused on product sales rather than important technicalaspects such as certification of origin, it should be projected that crimes such as fraud of origin could be easilycommitted in Jepara. This study is using a comparative advantage theory and theories or models of H-O toinvestigate how the practice of fraud of origin in Jepara occurs and how to resolve such problem.

David Ricardo – recognized leader in classical political economy (to the 250th anniversary of his birth)

Introduction. David Ricardo is a very prominent figure in the history of economic thought. He is a recognized leader in classical political economy and a reputable financier in both Britain and Europe in the first half of the XIX century. He is rightly considered one of the creators of the labor theory of value, he has brought it to its logical conclusion. The scientist made a significant contribution to the development of a scientific method for studying economic phenomena.Purpose of the research is to generalize the economic views of a prominent scientist on economic phenomena and processes, the action of economic laws that ensure the balance of a market economy and the basic principles of economic liberalism; analyze the Ricardo’s views on the laws of social wealth distribution between three classes of society and the impact of the existing distribution of income on the growth of wealth.Methods. The methodological basis of the study are such general scientific methods as analysis, synthesis, induction and deduction, which were used to assess the views, conclusions and recommendations of the scientist to ensure market equilibrium and increase the material wealth of society; historical – to understand the essence of the evolution of existing views on the labor theory of value, the theory of money and land rent; combining the abstract method with quantitative analysis to determine the quantitative characteristics of economic phenomena; positive and normative – to study the main and distinctive features in the views of representatives of classical political economy.Results. It has been researched the David Ricardo’s scientific work and it has been established that he was a prominent representative of classical political economy, a follower and at the same time an opponent of certain theoretical positions of Adam Smith. It was found that the most important ideas of economic theory have been reflected in his labor theory of value, the theory of capital and money, the theory of income distribution, tax theory and the theory of comparative advantage in international trade. It was established that the scientist had made a significant contribution to the development of the scientific method of research, in particular, by introducing the method of convergence from the abstract to the concrete and widespread use of the method of scientific deduction. According to the scientist, the subject of political economy should be the study of the laws of distribution of income between classes of society in the form of rents, profits and wages. D. Ricardo made a significant contribution to the justification of free trade policy in the international sphere, the importance and profitability of foreign trade for countries.Discussion. The prospect for further research is a deeper and more detailed analysis of the methods used by the scientist in the study of economic phenomena and processes. This will allow assessing the Ricardo’s contribution to the formation and development of economics more objective.

A Comparative Study on the Competitiveness of Knowledge-Driven Sports Brands

With the rapid development of science and technology, sports brands are increasingly relying on knowledge-driven technology. This study uses the competitive advantage theory, comparative advantage theory, and knowledge-driven theory, referring to the evaluation principles of scientificity, operability, and effectiveness, and selects Anta, Li Ning, and Adidas as the research objects of knowledge-driven sports brand competitiveness. Using Yaaph12.7 software and multilevel index entropy method, we assign and calculate 4 secondary indexes, 12 tertiary indexes, and 35 4th-level indexes of brand strength, brand potential, brand power, and brand vitality of three brands. In addition, Anta has strong comprehensive strength and good social resources and policy support. Li Ning’s brand potential is the greatest, and the consumer group is younger. Therefore, this study draws the following conclusions: (1) The core competitiveness of knowledge-driven sports brands is the innovation-driven model of brand technology, product R&D, intangible asset value, and brand development. (2) The competitiveness of knowledge-driven sports brands pays more attention to brand potential, brand strength, and brand vitality. (3) The competitiveness of knowledge-driven sports brands needs to be combined with the latest scientific and technological means to realize the integration of brands and information technology, “Internet +,” and big data. (4) The brand size, brand resources, and other brand advantages in the knowledge-driven sports brand competition indicators are not the main influencing factors for showing the core competitiveness. This paper draws the following inspirations from the research conclusions: it is necessary for knowledge-driven sports brands to improve the ability to transform resources and stimulate the vitality of the brand market, optimize the level of brand service to meet market consumption needs, strengthen innovation-driven development and explore innovative development paths, build brand development strategy, cultivate the development of superior technology, accelerate the development of brand quality, and build an applied talent pool.

Challenges to India’s Defense Modernization and Moving Forward

India is today confronted with tremendous obstacles as it strives to improve its international reputation. India’s strategic location increases the prospect of future challenges (most notably a nuclear threat) with its neighboring country. India’s strategic location and recent geopolitical dynamics in South Asia by China’s Belt and Road Initiative necessitates India’s Defence Modernization to cater to India’s National Security facing threats from traditional and non-traditional actors. This study highlights how India’s self-reliance in dual-use technology production would give a comparative advantage for India’s mandate to achieve modernization of India’s Defence Technology. This study discusses the push, pull, and compelling factors for the Defence Modernization where the latter would draw significant inference from Ricardo’s Comparative Advantage Theory. This study would conclude by arguing that India needs to diversify its weapon and ammunition, which requires considerable policy correction in Defence Acquisition and Procurement Policy to boost indigenous defence weapon production.

The panopticon of Germany’s foreign trade, 1880–1913: New facts on the first globalization

Abstract We present and analyze the panopticon of Germany’s foreign trade, with new data on all products, all trade partners, quantities, and values, at annual frequency, 1880–1913. Historical product categories are reclassified according to the Standard International Trade Classification (SITC) to ensure comparability over time and across countries. Germany became increasingly specialized in manufacturing, in line with theories of comparative advantage. However, most trade growth occurred along the extensive margin, and 20–25 percent of trade was intra-industry trade, at five-digit SITC. Both facts suggest substantial within-sector heterogeneity. We discuss why this matters for our understanding of the first globalization.