The document summarizes several theories of international trade from mercantilism to contemporary theories like Porter's national competitive advantage theory. It discusses key concepts like absolute advantage, comparative advantage, factor proportions theory, product life cycle theory, and new trade theory. Porter's diamond framework identifies factor conditions, demand conditions, related industries, and firm strategy/rivalry as determinants of a nation's competitive advantage in a given industry. The document aims to help understand why and how international trade improves welfare according to different trade theories.