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Ch 4: International Trade Theories

About This Chapter

Refer to this chapter on international trade theories as you need to 24 hours a day while preparing for a test or catching up after missing class. We've made these subjects easy to understand by presenting them in a mobile-friendly lesson format.

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

6 Lessons in Chapter 4: International Trade Theories
Test your knowledge with a 30-question chapter practice test
The Economics & Politics of International Trade

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.

Gains from Trade: Definition & Example

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.

Classical Approach to International Trade Theory

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.

Modern Approach to International Trade 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.

What is Free Trade? - Definition, Pros, Cons & Examples

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.

Advantages and Disadvantages of Trade Protectionism

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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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