About This Chapter
International Trade Theories - Chapter Summary
Our professional instructors present international trade theories in this chapter. You'll work through international trade patterns, free trade and trade protectionism in these lessons. Take a look at the quiz accompanying each lesson to make sure you've understood what you've learned and you're ready to move on. The Dashboard offers you a chance to keep tabs on your progress through the chapter and submit your questions to our experts. After finishing these lessons, you should be able to:
- Discuss the economics and politics of international trade
- Define gains from trade with examples
- Outline the classical and modern approaches to international trade theory
- Explain the implications of international trade theory on international retailing
- Provide the pros and cons of free trade
- Describe the impact of unrestricted free trade on international retailing
- Detail the advantages and disadvantages of trade protectionism
1. The Economics & Politics of International Trade
We will discuss the economics & politics of international trade through the definition of open trade and its benefits and drawbacks. In addition, the ideas of competitive advantage and political patience will be shown as key indicators of global success.
2. Gains from Trade: Definition & Example
Sometimes doing everything yourself isn't always the best economic decision. This lesson explains and provides an example, showing how specializing and trading can benefit everyone involved.
3. Classical Approach to International Trade Theory
This lesson explores and analyzes the history, importance, relevance, and uses of classic international trade theories. This includes a look at country-based theories like mercantilism, absolute advantage, comparative advantage, and Heckscher-Ohlin Theory or Factor Proportions Theory.
4. Modern Approach to International Trade Theory
From Porter's National Competitive Advantage Theory to the New Trade Theory, there are many international trade theories that can help firms create a business plan or strategy. This lesson will look at different theories and their application in the world of imports and exports.
5. What is Free Trade? - Definition, Pros, Cons & Examples
Is free trade a good thing? The issue of free trade has been a source of debate for centuries, and in this lesson, we will discuss the pros and cons of free trade that have led to this debate.
6. Advantages and Disadvantages of Trade Protectionism
Countries want to win the game of international trade by exporting more than they import. Some countries pursue trade protectionism to do this. In this lesson, you'll learn about the advantages and disadvantages of this strategy and related concepts.
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Other chapters within the International Retailing Strategy & Operations course
- Introduction to Business Globalization
- International Market Dynamics
- Cultural Differences in Business
- International Trade Policy
- World Trade Organizations
- Strategies for International Business
- International Market Entry Strategy
- International Production & Logistics
- International Supply Chain Management & Distribution
- International Product, Pricing & Marketing Strategy