Autarky

Autarky and International Trade Economy

In relation to international trade economy, Christopher Mark (1993) provided the following definition of Autarky: A policy that attempts to create a self-sufficient national economy entirely insulated from international trade, usually for ideological or strategic reasons. (A related concept, applying to absolute sovereignty in political relations, is referred to as autarchy.) Until the collapse of communism, many former East Bloc countries pursued policies of autarky relative to the capitalist world. The concept essentially denies or ignores the possibility of mutually-beneficial international trade grounded on the principle of comparative advantage.