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Theories  of  International Trade
Learning Objectives ,[object Object],[object Object],[object Object]
Evolution of Trade Theories ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Mercantilism: mid-16th century ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Defining mercantilism … ,[object Object]
Theory of absolute advantage ,[object Object],[object Object],[object Object],[object Object],[object Object]
Theory of absolute advantage ,[object Object],[object Object],[object Object]
Theory of absolute advantage PPF – Production Possibility Frontier
 
 
 
 
Theory of comparative advantage ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Theory of comparative advantage
Comparative advantage and the gains from trade
 
Comparative advantage: Bollywood
 
 
Assumptions and limitations ,[object Object],[object Object],[object Object],[object Object],[object Object]
Factor proportions theory ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Factor proportions theory ,[object Object],[object Object],[object Object],[object Object]
Factor Proportions Trade Theory Considers Two Factors of Production ,[object Object],[object Object]
Factor Proportions Trade Theory ,[object Object]
The Leontief Paradox ,[object Object],[object Object],[object Object],[object Object]
The Leontief Paradox ,[object Object],[object Object],[object Object],[object Object]
Product life-cycle Theory R.Vernon (1966)  ,[object Object],[object Object],[object Object],[object Object]
Product life cycle theory Fig 4.5
The Product Cycle and Trade Implications ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
New trade theory ,[object Object],[object Object],[object Object]
New trade theory - applications ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Theory of national competitive advantage   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Porter’s diamond ,[object Object],[object Object],[object Object]
Factor endowments ,[object Object],[object Object],[object Object]
Basic factor endowments ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Advanced factor endowments ,[object Object],[object Object]
Advanced factor endowments ,[object Object],[object Object],[object Object],[object Object],[object Object]
Demand conditions ,[object Object],[object Object],[object Object],[object Object]
Related and supporting industries ,[object Object],[object Object]
Firm Strategy, Structure and Rivalry ,[object Object],[object Object],[object Object]
Determinants of Competitive Advantage in nations Fig 4.8 Government Company  Strategy, Structure, and Rivalry   Demand Conditions Related and Supporting Industries Factor Conditions Chance Two external factors that influence the four determinants.
  Porter’s Theory-predictions ,[object Object],[object Object]
Implications for business ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
 
India in the global competitiveness report

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International Trade Theories