International Trade Theory True / False Questions 1. (p. 154) Countries such as the U.S should not participate in free trade because it leads to a migration of jobs overseas and ultimately leads to lower living standards. FALSE Difficulty: Medium 2. (p. 154) A situation where a government does not attempt to influence‚ through quotas or duties‚ what its citizens can buy from another country or what they can produce and sell to another country is known as free trade. TRUE
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International Trade Theory Chapter Outline OPENING CASE: The Ecuadorian Rose Industry INTRODUCTION AN OVERVIEW OF TRADE THEORY The Benefits of Trade The Pattern of International Trade Trade Theory and Government Policy MERCANTILISM Country Focus: Is China a Neo-Mercantilist Nation? ABSOLUTE ADVANTAGE COMPARATIVE ADVANTAGE The Gains from Trade Qualifications and Assumptions Extensions of the Ricardian Model Country Focus: Moving U.S. White
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International Trade Theories Mercantilism Mercantilism was a sixteenth-century economic philosophy that maintained that a country’s wealth was measured by its holdings of gold and silver (Mahoney‚ Trigg‚ Griffin‚ & Pustay‚ 1998). This recquired the countries to maximise the difference between its exports and imports by promoting exports and discouraging imports. The logic was transparent to sixteenth-century policy makers-if foreigners buy more goods from you than you buy from them‚ then the foreigners
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CHAPTER 5: INTERNATIONAL TRADE THEORY QUICKNOTES IN GLOBAL INTERNATIONAL TRADE Condensed by: Group 2 7 THEORIES OF INTERNATIONAL TRADE: 1. Mercantilism 2. Absolute Advantage 3. Comparative Advantage 4. Heckscher-Ohlin Theory 5. Product Life-Cycle Theory 6. New Trade Theory 7. The Theory of National Competitive Advantage 1. Mercantilism -emerged in England in the mid-16th century. The main tenet of mercantilism was that it was in a country’s best interests
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Question 1 1 out of 1 points New trade theory argues that‚ through its impact on economies of scale‚ trade can: Selected Answer: increase the variety of goods available to consumers. Answers: increase the average costs of goods. enable the global market to support a wide range of enterprises. negatively affect the first-mover advantage for all products. increase the variety of goods available to consumers. prevent diminishing of returns and promote constant
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3. Porter’s theorizes that four broad attributes of a nation shape the environment in which local firms compete‚ and that these attributes promote or impede the creation of competitive advantage. These attributes are‚ factor endowments‚ demand conditions‚ related and supporting industries‚ firm strategy‚ structure‚ and rivalry. He speaks of these four attributes as constituting the diamond. He argues that firms are most likely to succeed in industries or industry segments where the diamond is most
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the nation’s fifth largest export‚ with customers allover the world. Rose farms generate $240 million in sales and support tens of thousands of jobs. In Cayambe‚ the population has increased in 10 years from 10‚000 to 70‚000‚ primarily as a result of the rose industry. The revenues and taxes from rose growers have helped to sophisticated pave roads‚ build schools‚ and construct irrigation systems. Maria works Monday to Saturday‚ and earns $210 a month‚ which she says is an average wage in Ecuador
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Originally thought to be extremophiles living in harsh environments‚ these creatures can live a range of habitats like oceans‚ soils and even salty lakes. Overall‚ these organisms are special and different from other life forms. The rise of archae is one of the main differences why scientist distinct it from other prokaryotes. In the past‚ archae was classified an archaebacteria‚ but now with better studies conducted‚ archae is known to have an independent evolutionary history. They didn’t rise up in
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specifying standards‚ processing‚ marketing‚ extension and training in various aspects of the industry.Structure‚ Activities & Network MPEDA functions under the Ministry of Commerce‚ Government of India and acts as a coordinating agency with different Central and State Government establishments engaged in fishery production and allied activities. The composition of the Authority is given in Annex I. Standing Committees of MPEDA Executive CommitteeTechnical CommitteeExport Promotion CommitteeThe
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Eight different states of demand 1. Negative demand: if a major part of market dislikes the product and may even pay a price to avoid it – vaccinations‚ gall bladder operations etc. Marketing task is to analyze why the market dislikes the product and whether a marketing program can change beliefs and attitudes. 2. No Demand: Target consumers may be unaware of or uninterested in the product. Eg. College students may not be interested in foreign language courses. Marketing should look for ways
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