13177687
Description
Mind Map by Jesús Gallegos Lechuga, updated more than 1 year ago
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Created by Jesús Gallegos Lechuga
over 6 years ago
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THEORIES OF INTERNATIONAL TRADE
- THE THEORY OF ABSOLUTE ADVANTAGE
- This theory was
proposed in 1776,
by Adam Smith
- This is the basis of
international trade lies
in the division of
absolute advantage,
which can be defined
as the good, or
services in which
country is more
efficient or can
produce more than
the other country or it
can produce the same
quantity with another
country that uses
fewer resources.
- This theory was
proposed in 1776,
by Adam Smith
- THE COMPARATIVE ADVANTAGE THEORY
- This theory was
first declared by
Adam Smith and
later developed by
David Richardo and
John Stuart Mill.
- According to Adam Smith,
"it is the maximum of
every prudent teacher in a
family that never try to do
at home what it will cost
more to do than buy. "
- Richardo took the
application of the law to
trade between two
countries and concluded
that both countries will
benefit if each one
concentrates on
producing the product
where it can perform
more efficiently and
exchange the product
with which you can
produce less efficiently.
- This theory was
first declared by
Adam Smith and
later developed by
David Richardo and
John Stuart Mill.
- RENTAL FOR EXCESSIVE THEORY
- This theory has its
origin with classical
economists
- A country carries out
that surplus part of the
product of their land
and labor for which
there is no demand;
gives a value of these
surpluses, change them
for something else, that
can satisfy a part of
your wishes, and
increase your
enjoyment.
- The important
aspect of income
from the theory of
surplus includes:
- International trade
does not necessarily
reassign the factors of
production, but allows
production.
- The population density of a
country.
- Excess
production
capacity.
- International trade
does not necessarily
reassign the factors of
production, but allows
production.
- The important
aspect of income
from the theory of
surplus includes:
- A country carries out
that surplus part of the
product of their land
and labor for which
there is no demand;
gives a value of these
surpluses, change them
for something else, that
can satisfy a part of
your wishes, and
increase your
enjoyment.
- This theory has its
origin with classical
economists
- THE THEORY OF FACTOR PROPORTIONS
- This theory is also
known as the
Heckscher-Onlin theory.
- The Heckscher-Ohlin theory
states that differences in the
relative prices of products in
the two isolated regions
(and this is the basic cause
of international trade)
depend on the conditions of
demand and supply of
goods in the two regions.
- This theory is also
known as the
Heckscher-Onlin theory.
- COMPETITIVE ADVANTAGE OF NATIONS
- Michael Porter of Harvard
Business School
developed this theory.
- Explain why Individual nations
achieve international success
in particular industries.
- The competitiveness of a
nation depends on the
ability of your industry to
innovate and update.
- Which categorized
into four main
components. They
are:
- Conditions of the
factors.
- Demand conditions.
- Firm strategy,
structure and
rivalry.
- Related and
support
industries.
- Conditions of the
factors.
- Which categorized
into four main
components. They
are:
- The competitiveness of a
nation depends on the
ability of your industry to
innovate and update.
- Michael Porter of Harvard
Business School
developed this theory.
- Jesús Eduardo Gallegos Lechuga.303011.
Ingles 6. Joaquin Horacio Romero
Robledo.
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