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Ch 5
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Trade Theory overview
Free Trade
The benefits of trade
The pattern of international trade
New Trade Theory
Trade theory and government policy
Mercantilism
Zero Sum Game
Absolute Advantage
Comparative Advantage
The gains from trade
Qualifications and Assumptions
Extensions of the Ricardian Model
Immobile Resources
Diminishing Returns
Constant returns to specialization
Dynamic effects and economic growth
The Samuelson Critique
The influence of Free Trade on the PPF
Evidence for the link between Trade and Growth
Heckscher-Ohlin Theory
Factor Endowments
The Leontief Paradox
The Product Life-Cycle Theory
New Trade Theory
Economies of Scale
Increasing product variety and reducing costs
Economies of scale, first mover advantages, and the pattern of trade
Implications of the New Trade Theory
National Competitive Advantage: Porter's Diamond
Factor Endowments
Demand Conditions
Relating and supporting industries
Firm strategy, structure, and rivalry
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
Demand Conditions (porters)
the nature of home demand for the industry's product or services
Relating and supporting industries (Porters)
the presence or absence of supplier industries and related industries that are internationally competitive.
Firm strategy, structure and rivalry (Porters)
the conditions governing how companies are created, organized and managed and the nature of domestic rivalry.
Implications for Managers of International Trade Theory
Location
First Mover Advantage
Government Policy
Balance of payments accounts
Current account
Current account deficit
current account surplus
capital account
financial account
Author
NaomiChapman
ID
26959
Card Set
Ch 5
Description
Global Business
Updated
2010-07-16T00:34:02Z
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