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Exam 2
Chapter 5
Trade Theories
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New Trade Theory
SP 24 > International Business > Exam 2 > Chapter 5 > Trade Theories
5 cards
International Product Life Cycle Theory
SP 24 > International Business > Exam 2 > Chapter 5 > Trade Theories
8 cards
Factor Proportions Theory
SP 24 > International Business > Exam 2 > Chapter 5 > Trade Theories
9 cards
Absolute and Comparative Advantage
SP 24 > International Business > Exam 2 > Chapter 5 > Trade Theories
12 cards
Mercantilism
SP 24 > International Business > Exam 2 > Chapter 5 > Trade Theories
10 cards
Cards (55)
exhibit 5.1: arranges leading theories of international
trade
and
investment
into two groups -
nation level theories
and
firm level theories
nation level theories are
classical
theories, widely accepted since
the 18th century
nation
level theories address two questions:
why do nations
trade
?
how can nations enhance
competitive advantage
?
firm level theories are
contemporary
theories of how firms can create and sustain superior
organizational performance
firm
level theories address two questions:
why
and
how
do firms
internationalize
?
how can internationalizing firms gain and sustain
competitive advantage
?
even resource rich countries such as the
United States
would suffer greatly without
trade
without trade,
coffee
and
sugar
would be luxury items
without trade,
petroleum
based energy sources would dwindle
without trade,
vehicles
would stop running,
freight
would go undelivered, and people wouldn't be able to
heat
their
homes
modern life would be nearly impossible without
trade
six classical perspectives help explain the underlying rationale for trade among nations:
mercantilism
absolute
advantage principle
comparative
advantage principle
factor
proportions theory and the
Leontief
Paradox
international
product
life
cycle theory
new
trade
theory
See all 55 cards