Marketing bán hàng - Chapter 2: Trade theories and economic development

Chapter 2Trade Theories and Economic DevelopmentChapter OutlineBasis for International Trade- Production Possibility Curve- Principle of Absolute Advantage- Principle of Comparative/Relative AdvantageExchange Ratios, Trade, and GainFactor Endowment TheoryChapter OutlineThe Competitive Advantage of NationsA Critical Evaluation of Trade Theories- The Validity of Trade Theories- Limitations and Suggested RefinementsEconomic Cooperation- Levels of Economic IntegrationEconomic and Marketing ImplicationsBasis for International TradePrinciple 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 nationsBasis for International TradePrinciple 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 PorterThe Competitive Advantage of Nations Determinants of International Competitiveness- factor conditions- demand conditions- related and supporting industries- firm strategy, structure, and rivalry- chance- governmentValidity of Trade TheoriesLeontief ParadoxTendency for countries with similar endowments to trade among themselvesOffshoringFactor Mobility and SubstitutionDemandMarketingTrade BarriersLevels of Economic CooperationFree Trade AreaCustoms UnionCommon MarketEconomic and Political UnionPolitical UnionEconomic Cooperation Free Trade Area- elimination of internal dutiesCustoms Union- free trade area + establishment of common barriersCommon Market- customs union + removal of restrictions on movement of production factorsEconomic Cooperation Economic and Monetary Union- common market - + harmonization of national economic policies- + one moneyPolitical Union- harmonization of national political policies