A Note on International Trade Theory

by: John Branch

Publication Date: December 18, 2014
Length: 8 pages
Product ID#: 1-429-407

Core Disciplines: Economics, Entrepreneurship & Innovation, International Business

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Teaching Note

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This note describes international trade theories, beginning with country-based international trade theories, followed by firm-based international trade theories, and concluding with a single company-based international trade theory. The theories discussed were derived from the disciplines of economics and business. From this note, readers will gain a strong foundation and background for international trade theories and the advantages and disadvantages of each.

Teaching Objectives

After reading and discussing the material, students should:

  • Describe the different international trade theories in depth
  • Identify the differences between an absolute advantage and a comparative advantage
  • Discuss the advantages and disadvantages of each international trade theory