International Trade Theories That Can Be Analyzed - 944 Words

International Trade Theories There are a number of different trade theories that can be analyzed in regards to the above referenced research project, and I will attempt to address the theories I feel that are most relatable to the question in hand. The first international trade theory I will address is that of Mercantilism. Historically, mercantilism is defined as â€Å"the economic theory that trade generates wealth and is stimulated by the accumulation of profitable balances, which a government should encourage by means of protectionism†. (Vocabulary.com, 2016) Today it has been suggested that mercantilism is the belief in the benefits of profitable trading; commercialism, and that it is the basis upon which all future strategic operations made money for countries in the Asia Pacific. The next international trade theory to be addressed is the Porter’s Diamond, also known as the National Competitive Advantage. The Porter’s Diamond strategy seeks to answer the question of why a nation achieves international success in a particular industry. (Harvard Business Review, 1990). When analyzing this theory there are number of factors that need to be taken into consideration, however what is notable is that basic factors such as climate and location are among those most important. To be more specific, a automobile company wishing to expand into a different country, would not want their factory to be inland, practically it makes more sense to have a factory close to port, in order forShow MoreRelatedChinas Accession Of The World Trade Organization1422 Words   |  6 Pagesthe world Trade Organization (WTO) in 2001 has accelerated the growth of its foreign trade still further. The more China’s foreign trade activities mean more trading partners, and chin a had already established trading relationship with more than 200 countries and regions all around the world. At the same time, annual production volume gradually increased for all major textile product categories, and china gradually began to play an important role in international textile industry trade. The ongoingRead MoreDavid Ricardos The Principle Of Political Economy And Taxation1519 Words   |  7 PagesDavid Ricardo who developed the concept of the comparative advantage of trade. This concept is a part of the classical theory of trade and was published in 1817 in David Ricardo’s book entitled the Principles of Political Economy and Taxation (Appleyard Field, 2014, p. 30). This paper will address the effectiveness of this concept as it has been applied to real-world international trade after the General Agreement in Trade and Tariffs (GATT) was signed in 1947. How the level of wages, productivityRead MoreThe Second Key Driver Manipulating The Spread Of Globalizat ion894 Words   |  4 PagesThe second key driver manipulating the spread of globalization is technological change. The reductions of international trade and investment barriers made globalization of markets and globalization of production a theoretical possibility; technological change made it a visible reality (Hill, Cronk, Wickramasekera, 2014). Over the years, there has been major technological development. There are three major technological advancements, include microprocessors and telecommunications, the internet andRead MoreNeo-Realism and Liberalism: Comparing These Two Different Frameworks Used in International Relations1226 Words   |  5 PagesIn order for countries to cohesively overcome international barriers, frameworks of ideal political standards must be established. Two of these frameworks constantly discussed in international relations are the theories of Neo-realism and Liberalism; two theories with their own outlook at the way politicians should govern their country as well as how they should deal with others. Neo-realism lies on the structural level, emphasizing on anarchy and the balance of power as a dominant factor in orderRead MoreThe Rise Of India s Drug Industry998 Words   |  4 PagesThe Rise of India’s Drug Industry and The Rise of Bangladesh’s Textile Trade At first, India’s trade industry was one that was known for being an international outcast in the pharmaceutical industry. The counterfeit drugs that they were producing and selling eventually was revealed by the Western and Japanese pharmaceutical companies. Therefore, they were not allowed to sell their products in any developed markets considering that they dishonored intellectual property rights. Intellectual propertyRead MoreImpact Of Currency Fluctuations On Foreign Trade1713 Words   |  7 PagesImpact of Currency Fluctuations on Foreign Trade in Emerging Economies An Empirical Analysis Executive Summary The paper analyses the impact of currency fluctuations on foreign trade i.e. imports and exports of emerging economies. For our study we have analyzed emerging economies: Brazil, India, China and South Africa. The available literature shows that currency appreciation has negative impact on the trade of any economy. China’s exchange rate is being controlled by government authorities andRead MoreStrengths and Weaknesses of Neorealism, Neoliberalism and Constructivism1390 Words   |  6 Pagesformulation of various theories and ideas by renowned thinkers and researchers, constituting under the International Relations domain. International Relations or IR for short, focuses on the relations between the countries of the world and how those relationship is handled from the diplomatic and military perspective. This handling of relationship under IR is further divided into three main theories, Neorealism, Neoliberalism and Constructivism. So, this paper will focus on these three theo ries and will discussRead MoreThe Concept Of National Competitiveness1492 Words   |  6 Pagesdiscussion, and research there is still no pervasive theory. In fact, there is not even an accepted definition. Classical economic theorists dismiss the concept of competitiveness all together and instead look to comparative advantage and the drivers of trade surplus to explain national prosperity as a positive sum game. Harvard’s Michael Porter approaches the subject from a different view, asserting that defining competitiveness as gaining a trade surplus is not appropriate. ( Kitson, Martin, Read MoreLeadership Attributes Of Teachers And Its Impact On The Performance Of Students Essay1277 Words   |  6 PagesObjectives Scope of Study The main objective to conduct this research is to understand the leadership attributes of teachers of SPS International, Palwal (Haryana) and its impact on the performance of students. Primary Objective †¢ To know the leadership attributes of teachers and its impact on the performance of students. †¢ To know the educational environment which is used by an education institution? †¢ To know about the faculty development programs which are used by management of school? †¢ ToRead MoreGlobalization and Its Meaning Broadly Speaking, the Term ‘Globalization’ Means Integration of Economies and Societies Through Cross Country Flows of Information, Ideas, Technologies, Goods, Services, Capital,1074 Words   |  5 Pagesideas, technologies, goods, services, capital, finance and people. Cross border integration can have several dimensions – cultural, social, political and economic. In fact, some people fear cultural and social integration even more than economic integration. The fear of â€Å"cultural hegemony† haunts many. Limiting ourselves to economic integration, one can see this happen through the three channels of (a) trade in goods and services, (b) movement of capital and (c) flow of finance. Besides, there is