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.
A Note on International Trade Theory
by: John Branch
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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