The document discusses various theories of international trade over time, beginning with mercantilism and moving to more modern theories like comparative advantage, factor proportions, and new trade theory. It outlines key aspects of each theory, such as the three pillars of mercantilism being maintain a trade surplus, government intervention, and gold/silver as the currency of trade. Later theories like comparative advantage and factor proportions focus on specialization and trade based on relative efficiencies and resource abundance. The new trade theory incorporates concepts like economies of scale and learning effects. Porter's diamond of national competitive advantage identifies factor conditions, demand conditions, related/supporting industries, and firm strategy/rivalry as determinants of a nation's competitiveness.