The Rise and Fall of Empires in the Industrial Era - A Story of Shifting Comparative Advantages

Tim Stanley: The patterns of trade are very different now than they were at the beginning of the 18th century. Does your model imply that the age of these kind of empires is over? There won't be any more? Hopefully the empire won't strike back, he says. It's a great example of how we model trade could really give us an insight into political movements through history and today as well.