O"rourke and williamson, globalization and history (1999) ch. 3*, 4*, 11, 12. Chapter 3: transport revolutions and commodity market integration. Key idea: commodity market integration: before wwi (due to transportation cost reduction); after. Proxy for commodity market integration: trade share as gdp (x), price spatial variation (x), correlation (x), regional output variance specialization (x). Transportation innovation: steamships & canals, railroad, refrigeration. British: corn law of 1815 (prohibit import) corn law of 1828 (tariff) 1833 (reduce tariff) 1845 (reduce tariff) 1846 (repeal; free trade) Continental europe followed slowly; the cobden chevalier treaty (1860); mfn . Retreat from 1870s: american civil war tariff; continental european tariff; National market integration: the u. s. , russia, india, germany. Asia: pretty much forced to open up the market. Heckscher and ohlin: the commodity price convergence implied factor price convergence. Yes. (new world vs. protectionist & free trading old world) Not quite; but doesn"t affect the strength of the theory.