Trade Equilibrium Model in an Imperfectly Competitive Market

Spatial equilibrium model is a method of measurement that is designed to analyze the structure of competition of various products in the region to find both the quantity and price of equilibrium supply and demand as well as optimal routes. However, there is not much literature focusing on international trade related topics and even less researches by introducing tariff into the model. The reason is that most of products are levied importing tariff on the basis of compound duty that is composed of ad Vol Orem duty and unit duty and it hence is difficult to introduce such tariff system into spatial equilibrium model. Thus, the paper is mainly to construct a spatial equilibrium model of international trade in an imperfectly competitive market.