(Pontificia Universidad Católica del Perú. Departamento de Economía, 1999)
This paper presents in the first place, Kemps contribution to the understanding of the effects of the presence of IRS on the H-O theory of trade. Then, following W. Ethier we present a view about the development of trade theory incorporating IRS. Later on we present the “integrated economy” approach by P. Krugman. Finally, some models on commercial policy in the presence of IRS and imperfect competition are presented.
