Peng_Chapter 5

Peng_Chapter 5 - TradeTheories...

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Trade Theories classical trade theories -  consist of  mercantilism, absolute advantage, and  comparative advantage modern trade theories -  consist of product  life cycle, strategic trade, and national  competitive advantage
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Classical Trade Theories Protectionism -  idea that governments should actively protect  domestic industries from imports and vigorously promote exports Theory of mercantilism
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Classical Trade Theories Free Trade -  idea that free market forces should determine how  much to trade with little (or no) government intervention Theory of absolute advantage Theory of comparative advantage
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Classical Trade Theories Factor endowments -  extent to which different countries possess  various factors, such as labor, land, and technology Factor endowment theory  ( Heckscher-Ohlin theory ) - The  proposition that nations will develop comparative advantage  based on their locally abundant factors Think about the factor endowments in the US.
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This note was uploaded on 02/21/2010 for the course IBUS 311 taught by Professor Chen during the Fall '08 term at Binghamton.

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Peng_Chapter 5 - TradeTheories...

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