Ch 5

  1. Trade Theory overview
  2. Free Trade
  3. The benefits of trade
  4. The pattern of international trade
  5. New Trade Theory
  6. Trade theory and government policy
  7. Mercantilism
  8. Zero Sum Game
  9. Absolute Advantage
  10. Comparative Advantage
  11. The gains from trade
  12. Qualifications and Assumptions
  13. Extensions of the Ricardian Model
  14. Immobile Resources
  15. Diminishing Returns
  16. Constant returns to specialization
  17. Dynamic effects and economic growth
  18. The Samuelson Critique
  19. The influence of Free Trade on the PPF
  20. Evidence for the link between Trade and Growth
  21. Heckscher-Ohlin Theory
  22. Factor Endowments
  23. The Leontief Paradox
  24. The Product Life-Cycle Theory
  25. New Trade Theory
  26. Economies of Scale
  27. Increasing product variety and reducing costs
  28. Economies of scale, first mover advantages, and the pattern of trade
  29. Implications of the New Trade Theory
  30. National Competitive Advantage: Porter's Diamond
    • Factor Endowments
    • Demand Conditions
    • Relating and supporting industries
    • Firm strategy, structure, and rivalry
  31. Factor Endowments (Porters)
    a nation's position in factors of production such as skilled labor or the infrastructure necessary to compete in a given industry
  32. Demand Conditions (porters)
    the nature of home demand for the industry's product or services
  33. Relating and supporting industries (Porters)
    the presence or absence of supplier industries and related industries that are internationally competitive.
  34. Firm strategy, structure and rivalry (Porters)
    the conditions governing how companies are created, organized and managed and the nature of domestic rivalry.
  35. Implications for Managers of International Trade Theory
    • Location
    • First Mover Advantage
    • Government Policy
  36. Balance of payments accounts
  37. Current account
  38. Current account deficit
  39. current account surplus
  40. capital account
  41. financial account
Card Set
Ch 5
Global Business