Trade Theories and Economic Development

Slides:



Advertisements
Similar presentations
Chapter 4 Global Analysis
Advertisements

International Trade Theory
International Trade Models Mercantilism; The Classical Theories: –The Principle of Absolute Advantage –The Principle of Comparative Advantage The Heckscher-Ohlin-Samuelson.
The Theory of Trade and Investment
International Trade Theory
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
International Business
International Trade in Agricultural Products
Regional Economic Integration Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall.
Copyright ©2004, South-Western College Publishing International Economics By Robert J. Carbaugh 9th Edition Chapter 3 (A): Sources of Comparative Advantage.
The Heckscher-Ohlin-Samuelson Theorem
Sources of Comparative Advantage
International Trade Chapter 5.
Chapter 8 Economic Integration.
Theories of International Trade and Investment Chapter 3.
Theories of World Economy. Agenda The Heckscher–Ohlin theory Leontief’s paradox Theorem Ribchinsky.
Copyright © 2011 Pearson Education International Trade and Factor Mobility Theory.
University of Papua New Guinea International Economics Lecture 12: Trade Policy – The Developing World.
International Business, 8th Edition
National Competitive Advantage
Trading Across Borders
Trade Theories and Economic Development
Chapter 2 --Market Imperfections and Value: Strategy Matters u Wealth creation is impossible in a perfect market u Porter’s five forces can be used to.
New Classical Theories of International Trade
Chapter 5 International Trade Theory McGraw-Hill/Irwin Global Business Today, 4/e © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
International Trade Theory (Ch-4) Chapter Outline 1.Introduction 2.Various trade theories  Mercantilism  Theory of Absolute Advantage  Theory of Comparative.
1 Chapter 8 Economic Integration. 2 Learning Objectives To review types of economic integration among countries To examine the costs and benefits of integrative.
Chapter 2 --Market Imperfections and Value: Strategy Matters u Conditions necessary for a perfectly competitive product market and resource market: u No.
Chapter Five International Trade Theory McGraw-Hill/Irwin International Business, 6/e © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.
6-1 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Chapter Six International Trade and Factor- Mobility Theory International Business.
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
Chapter 5 Learning Objectives Factors explaining international trade patterns Differences in productivity Differences in factor endowment International.
Life Impact | The University of Adelaide University of Papua New Guinea Economic Development Lecture 15: International Trade.
OUTLINE 2.1 Introduction 2.2 The Mercantilists’ Views on Trade
2 The Global Economy. Learning Objectives Distinguish among the basic theories of world trade: absolute advantage, comparative advantage, and competitive.
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Global Business Today 7e by Charles W.L. Hill.
THEORIES OF GLOBAL TRADE AND INVESTMENT
© 2002 Thomson Learning, Inc. CHAPTER 5 The Theory of International Trade and Investment Text by Profs. M. Czinkota, I. Ronkainen, and M. Moffett Multimedia.
1 Chapter 2 Instructor Shan A. Garib, Winter 2013.
Topic 4: Economic Integration.  Economic integration  Economic integration is defined as the coming together of countries with the goal of increasing.
OHT 3.1 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 International Business: Theory and Practice.
International Trade Theories N.Keerthi(128936) Narahari Sai G(128937) Nishanth Singh(128938) Valliappan(128939) N.Keerthi(128936) Narahari Sai G(128937)
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
International Economics Tenth Edition
International Business 9e By Charles W.L. Hill McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Economics. Economic Basics Vocabulary: Economics: Study of how people meet their wants and needs Scarcity: Having a limited quantity of resources to meet.
Chapter 2 Trade Theories and Economic Development.
ECONOMIC INTEGRATION Subtitle. TITLE AND CONTENT LAYOUT WITH LIST Add your first bullet point here Add your second bullet point here Add your third bullet.
Trade and Factor Mobility Theory
chapter International Trade Theory McGraw-Hill/Irwin Global Business Today, 5e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5.
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 6-1 Chapter Six International Trade and Factor Mobility Theory International Business.
Copyright © 2011 Pearson Education Part Three Theories and Institutions: Trade and Investment 6-1.
International Trade Theory
International Trade Theory
International Trade Theory
Chapter Focus Review several trade theories that explain why it is beneficial for a country to engage in international trade. Explain the pattern of international.
International Economics By Robert J. Carbaugh 9th Edition
International Business: Introduction
REVIEW 8.1 EUROPEAN UNION.
Economic Integration.
Theories of International Trade and Investment
© 2001 South-Western, a division of Thomson Learning
Chapter 4 Global Analysis
Chapter 8 Economic Integration.
The Theory of Trade and Investment
International Business Lecture No,24 By Dr.Shahzad Ansar
Economic Integration AP/IB Economics.
International Trade Models
International Marketing
Presentation transcript:

Trade Theories and Economic Development Chapter 2 Trade Theories and Economic Development

Chapter Outline Basis for International Trade - Production Possibility Curve - Principle of Absolute Advantage - Principle of Comparative/Relative Advantage Exchange Ratios, Trade, and Gain Factor Endowment Theory

Chapter Outline The Competitive Advantage of Nations A Critical Evaluation of Trade Theories - The Validity of Trade Theories - Limitations and Suggested Refinements Economic Cooperation - Levels of Economic Integration Economic and Marketing Implications

Basis for International Trade Principle of Absolute Advantage - a country should export a commodity that can be produced at a lower cost than can other nations - or import a commodity that can only be produced at a higher cost than can other nations

Basis for International Trade Principle of Comparative/Relative Advantage - a country should export either a product with the greatest comparative advantage (or with the least comparative disadvantage) - or import either a product for which it has the greatest comparative disadvantage (or the least comparative advantage)

Factor Endowment Theory Factors of Production - labor - land - capital - others (technology, education, etc.) inequality of relative prices is a function of regional factor endowments comparative advantage is determined by relative abundance of such endowments

Michael Porter The Competitive Advantage of Nations Determinants of International Competitiveness - factor conditions - demand conditions - related and supporting industries - firm strategy, structure, and rivalry - chance - government

Validity of Trade Theories Leontief Paradox Tendency for countries with similar endowments to trade among themselves Offshoring Factor Mobility and Substitution Demand Marketing Trade Barriers

Levels of Economic Cooperation Free Trade Area Customs Union Common Market Economic and Political Union Political Union

Economic Cooperation Free Trade Area - elimination of internal duties Customs Union - free trade area + establishment of common barriers Common Market - customs union + removal of restrictions on movement of production factors

Economic Cooperation Economic and Monetary Union - common market - + harmonization of national economic policies - + one money Political Union - harmonization of national political policies

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.