Table of Contents
International Trade Theory Chapter 4
International Trade Theory
PPT Slide
PPT Slide
The Impact of Trade Policies
An Overview of Trade Theory
Mercantilism: mid-16th century
David Hume - 1752
Theory of Absolute Advantage
The Theory of Absolute Advantage
The Theory of Absolute Advantage and the Gains from Trade
Theory of Comparative Advantage
The Theory of Comparative Advantage
Comparative Advantage and the Gains from Trade
Simple Extensions of the Ricardian Model
Ghana’s PPF under Diminishing Returns
The Influence of Free Trade on the PPF
Is the Mercantilist Theory Still Valid?
Heckscher (1919)-Olin (1933) Theory
The Leontief Paradox, 1953
Heckscher vs Ricardo
Product Life-Cycle Theory (Raymond Vernon, 1966)
International Product Trade Cycle Model
The New Trade Theory
Application of the New Trade Theory
First-Mover Advantage
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PPT Slide
Airbus vs Boeing
Porter’s Diamond (Harvard Business School, 1990)
Determinants of National Competitive Advantage
Porter’s Diamond Determinants of National Competitive Advantage
The Diamond
Factor Endowments
Advanced Factor Endowments
Relationship of Basic to Advanced Factors
Demand Conditions
Related and Supporting Industries
Firm Strategy, Structure and Rivalry
Evaluating Porter’s Theory
Determinants of National Competitive Advantage
Porter’s diamond, but...
Implications for Business
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