Theories of international trade1

Theories of international trade1 - " Born...

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1Theories of international trade 1. Mercantilism 2. Absolute Advantage 3. Comparative Advantage 4. Factor Proportions 5. International product life cycle 6. New Trade Theory International product life cycle. ! New product stage " Product development produced sold domestically ! Maturing product stage " Good is produced and then exported to different countries " Different companies (countries ) begin producing good ! Standardized product stage " Competition " Domestic company starts looking for cheaper labor markets, other places to produce good " imports the good ! Limitations " US not the only innovator " Speed of innovation " Multiple market introduction
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Unformatted text preview: " Born Global. New Trade Theory (1970's-1980's) ! There are gains to be made from specialize (economies of scale) ! First Companies to market can create barriers to entering ! Governments can play a role in assisting domestic companies ! First mover advantage " 1 st company to develop product and bring it to market. National competitive advantage theory (Michael Porter, 1990) ! Nations competitiveness in industry depends on the capacity of the industry to innovate and upgrade " Porter Diamond-Firm Strategy-Factor conditions-Demand Conditions-related and support industries...
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This note was uploaded on 04/10/2008 for the course ECON 2310 taught by Professor Rodgers during the Spring '08 term at University of Central Arkansas.

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