Theories of international trade1

Theories of international trade1 - " Born Global New...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online