Global Business International Trade Theory Notes

Global Business International Trade Theory Notes -...

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Mercantilism: belief a country’s wealth is measured by its holdings of money (gold/silver originally) Goal is to accumulates holdings of money Promoting exports Discouraging imports Why? Keeps your people employed, gives government money Objective of each country is to have a trade surplus (where the value of exports are greater than the value of imports) Avoid a trade deficit (where the value of imports is greater than the value of
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Unformatted text preview: exports) Although mercantilism is one of the oldest theories, it remains part of modern thinking. Absolute Advantage: • Local Firm Characteristics:-Strategy, Structure and Rivalry • Factor Conditions:-Basic and Advanced • Related and supporting Industries-Spillover • Demand Conditions:-Pressure for innovation and quality Modern US Mercantilism:-Textile manufacturers-Steel companies-Sugar growers-Peanut farmers-Pharmacies...
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