everyone knows comparative statics is of no use in policy debates
and yet lots of spilt ink recently over gains from new cross border trade
with or without a compensating transfer system TS
but look at trade in independent pieces
new imports take market share from pre existing domestic producers eh ??
the lost value added pnce earned by local producers
is only by assumption off set by "equally valued " exports
how can the TS pareto ize the outcome ??
not even the implicit market clearing mechanisms can rig this exercise
of course there's no reason to expect the shock of trade on relevent local markets
to quickly diffuse through out the "bordered factor system "
before a generation of non traders in the bordered area have taken a beating
but put that aside
recall all trade is mediated by credit or credit money now
and so any balance becomes remote
ie the as if barter assumptions is a complete magic trick
the bordered areas aggregate advantage
hardly comes into play if the macro effects lead to disemployment in the borrdered area
rather then smooth distribution of impact into winners and losers all still "employed "
as is implicit in the trade theory formulations
shared by all players
trade occurs across borders if the traders gain on both sides of the border
AND the non traders can't mount a stop order or rely on automatic TS actions
to maintain ex ante positions of non traders
