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Trade development trend between Islamic republic of Iran and Azerbaijan republic

Abstract

H. Alipour*, A. Norieva and Moosa Rezvani

International trade theory had been evolved by Ricardo and Hecksher, Ohlin and Sam Delson, gradually and regularly. According to relative superiority Act, trade between two countries can suitable mutually and this state is even true when one of these two countries is less efficiency in total productions of goods and services. According to this theory, country which has less efficiency must specialize in exporting and production of goods and services which its lack of relative excellence about them is less and instead it must import the other goods and services. In fact, one country frequently exports products and services which its production largely depends to relatively abundant and less expensive product factors (labor, capital, technology skill) available in that country. This theory also state that as proving to be true entirely suppositions, International trade causes to desirable and optimize distribution of income and labor price and capital among countries will tend to equality.

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