Parados:
The whole bit was international economics. As usual in something as complex as that the understanding is "all other things being equal". As you carefully pointed out, all other things are NOT equal. Your grasp of the obvious is definitive.
The theory of international economics is taught (at the Graduate level, in my case) to attempt to show some reason in what can be, and often is, apparent chaos. A theory is a presumption that tries to explain observed phenomina. A theory remains in place until better brains than mine, or yours, test the theory and replace it with a better one. Even then the experts in the field have problems replacing their chereished theory with another.
I don't even pretend to understand it all. I didn't design the theory, I only try to grasp what I can of it, and pass it on to those who might find it of interest/use. If that is "nonsense" to you, be mindful that you are trying to kill the messenger, not the message.
Halfback
