1. International Business Lecture No,19 By Dr.Shahzad Ansar

2. Implications For Business

3. Cross Cultural literacy Ethnocentric Behavior Cross Cultural literacy Ethnocentric Behavior

4. Culture & Competitive Advantages Culture & Competitive Advantages

5. Theory of International Trade (Introduction) Theory of International Trade (Introduction)

6. FREE TRADE & Adam Smith(1776) FREE TRADE & Adam Smith(1776)

7. 1st British African colony to win independence (1957). Nkrumah espoused pan African socialism. High tariffs. Anti-exporting policy.

8. The Benefits of Free Trade

9. Kept lowering tariffs on manufactured goods. Created incentives to export. Reduced quotas. Reduced subsidies. Kept lowering tariffs on manufactured goods. Created incentives to export. Reduced quotas. Reduced subsidies. South Korea

10. 1950s: 77% of employment in agriculture. Now 20%. Manufacturing GNP went from 10% to over 30%. 1950s: 77% of employment in agriculture. Now 20%. Manufacturing GNP went from 10% to over 30%.

11. The Impact of Trade Policies Ghana 1970 –GNP/capita $250 1992 –GNP/per capita $450 –GNP Growth/year 1.5% Shift from productive uses (cocoa) to unproductive uses (subsistence agriculture Ghana 1970 –GNP/capita $250 1992 –GNP/per capita $450 –GNP Growth/year 1.5% Shift from productive uses (cocoa) to unproductive uses (subsistence agriculture

12. The Impact of Trade Policies Korea 1970 –GNP/per capita $260 1992 –GNP/per capita $6790 –GNP Growth/year 9% Shift from non-comparative advantage uses (agriculture) to productive uses (labor- intensive manufacturing). Korea 1970 –GNP/per capita $260 1992 –GNP/per capita $6790 –GNP Growth/year 9% Shift from non-comparative advantage uses (agriculture) to productive uses (labor- intensive manufacturing).