Published on September 30, 2013
Chapter 2 Trade Theories and Economic Development Bahman Moghimi (MA, DBA)Bahman Moghimi (MA, DBA) B.Moghimi@yahoo.co.uk
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 B.Moghimi@yahoo.co.uk
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 B.Moghimi@yahoo.co.uk
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 B.Moghimi@yahoo.co.uk
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) B.Moghimi@yahoo.co.uk
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 B.Moghimi@yahoo.co.uk
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 B.Moghimi@yahoo.co.uk
B.Moghimi@yahoo.co.uk Michael Porter The Competitive Advantage of Nations
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 B.Moghimi@yahoo.co.uk
Levels of Economic Cooperation Free Trade Area Customs Union Common Market Economic and Political Union Political Union B.Moghimi@yahoo.co.uk
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 B.Moghimi@yahoo.co.uk
Economic Cooperation Economic and Monetary Union - common market - + harmonization of national economic policies - + one money Political Union - harmonization of national political policies B.Moghimi@yahoo.co.uk
1. B.Moghimi@yahoo.co.uk B.Moghimi@yahoo.co.uk 2. Chapter 2 Trade Theories and Economic Development Bahman Moghimi (MA, DBA)Bahman Moghimi (MA, DBA) B ...
Global Marketing Chapter 2 Session 4 MOGHIMI University of Georgia. Global Marketing Chapter 2 Session 4 MOGHIMI University ... Chapter 2 Global Marketing ...
... 3 chapter 2 Moghimi, University of Georgia. ... Session 3 chapter 2 Moghimi, University of ... Global marketing chapter 2 session 4 moghimi ...
University of Georgia Recreational Sports Outdoor Complexes Operations ... 2 Table of Contents PURPOSE… ... Leadership; Technology; Education; Marketing ...
Georgia History Chapter 4. GEORGIA’S PREHISTORIC PAST: CLUES OF THE FIRST PEOPLE. Prehistoric Age. ... Marketing; Design; More Topics. Search; Home ...
... (Atlanta, Georgia) 3 Duke University (Durham, North Carolina) 4 ... 1 John Hopkins University (Baltimore, Maryland) 2 Georgia Institute ... Marketing ...
Mumbai once again gears to host the 4 th edition of the Global Economic Summit, ... Iran & Georgia Joint Council of ICCIMA. Ms. Moghimi is ... 2 Million Sq ...
2. Voluome 8•mNbr1I mSmAme1IP ims. BOARD OF DIRECTORS. MESSAGE FROM THE EDITOR. PRESIDENT. Carlos Uebel, MD, PhD Porto Alegre, RS, Brazil email@example.com