Materials developed under the European programme: INTERNATIONAL BUSINESS

BIZNES MIĘDZYNARODOWY SYLLABUS 1.Dlaczego narody handlują ze sobą? Teorie wymiany międzynarodowej. 2.Co kształtuje wymianę? Czynniki geograficzne. 3.Co kształtuje wymianę? Czynniki polityczne. Czynniki prawne. 4.Co kształtuje wymianę? Czynniki kulturowe. 5.Co kształtuje wymianę? Czynniki ekonomiczne.

BIZNES MIĘDZYNARODOWY SYLLABUS 6.Handel zagraniczny. Definicje podstawowe. 7.Pośrednicy w obrocie międzynarodowym. 8.Organizacja obrotu. INCOTERMS Organizacje międzynarodowe. 10.Co kształtuje wymianę? Czynniki ekonomiczne.

Materials developed under the European programme: INTERNATIONAL BUSINESS International Trade Theories

Mercantilism Absolute Advantage Comparative Advantage Hecksher-Ohlin Theorem International Product Life Cycle Why do nations trade?

Mercantilism One of first economic doctrines (1550 to 1800) Wealth measured in gold. accumulate gold by exporting more than importing Since amount of gold is finite, trade is zero-sum Assumes governments can control trade France and Japan are modern “neomercantilist” examples

Absolute Advantage Adam Smith in Wealth of Nations Produce and export goods at which each nation is most efficient Labor is primary cost factor

Comparative Advantage Ricardo in 1817 Trade success although no absolute advantage in trade goods Produce and export goods at which each nation is relatively most efficient Labor is primary cost factor

Heckscher-Ohlin Theory Differences in production factors Adds land and capital to labor as production factors that add value Concentrate on goods requiring most abundant factor Doesn’t account for transportation costs taste preferences available technology

Related to product life cycle theory in marketing Intro.GrowthMaturityDecline Unit Sales Time International Product Life Cycle

Unit Sales time Domestic Sales Domestic Production Exports Imports Domestic ExportsForeign Production Foreign Competition Import Competition International Product Life Cycle

Newer Explanations Economies of Scale/Experience Curve Lindler Theory of Overlapping Demand Porter’s Competitive Advantage of Nations

Lindler Theory of Overlapping Demand Focused on manufactured goods Trade between nations with similar per capita income Consumers’ demands are similar (overlapping)

Porter’s Competitive Advantage of Nations Four variables in competitive advantage demand conditions factor conditions related and supporting industries firm strategy, structure, competition

Trade Restrictions National defense Infant industries Protection of domestic jobs Retaliation Dumping Export subsidies

Types of Restrictions Tariff Barriers Ad Valorem Specific Compound Taxes Value Added Tax Import/Export Taxes Excise duty

Quantitative quotas, orderly marketing arrangements, countertrade Non Quantitative government subsidies standards Non-Tariff Barriers

Economic Development Developed nations Newly industrialized economies (NIEs) Developing nations

Developed Nations Western European nations United States Japan Australia New Zealand Canada

Newly Industrialized Economies (NIEs) Brazil Mexico Malaysia Thailand Chile South Korea Taiwan Hong Kong Singapore

GNP/Capita as Indicator Widely used to compare nations Values are estimated Some GNP unreported Barter trade not reported Exchange rates may not reflect actual value Assumes equal distribution Include other measures

Characteristics of Developing Nations-1 GNP/Capital less than $2,000 Unequal distribution Technological dualism Majority earn income from agriculture Unproductive agriculture Large unemployment figures

Health problems and malnutrition High illiteracy High population growth Reliance on few products for export Difficult topography Low savings rate Political instability Characteristics of Developing Nations-2