Ch 7: International Trade Theory & Policy

About This Chapter

Review international trade policy and theory with this business chapter. Study these topics to earn continuing education credit, bring up your grades, prepare for exams or supplement your business expertise.

International Trade Theory & Policy - Chapter Summary

This collection of international business lessons will help you study international trade theory and policy. Inside the chapter, you'll find concise lessons that examine classical and modern approaches to internal trade theory, as well as national trade policies, trade protectionism, specialization benefits and U.S. trade laws. You're encouraged to take the included self-assessment quizzes to gauge your understanding of the chapter material. You can conveniently access these lessons using virtually any computer or mobile device and study whenever you're able to. Completing this chapter will help you:

  • Compare the classical and modern approaches to international trade theory
  • Consider forces that affect global market trading
  • Assess the purpose and importance of importing and exporting in global markets
  • Evaluate the economic impact of national trade policies
  • Outline trade restrictions and foreign labor
  • Analyze international trade regulations and restrictions
  • Distinguish the advantages and disadvantages of trade protectionism
  • Explain how tariffs and quotas affect imported goods and domestic prices
  • Point out trade gains and specialization benefits
  • Break down treaties under Article II of the U.S. Constitution
  • Summarize U.S. trade laws and policies

12 Lessons in Chapter 7: International Trade Theory & Policy
Test your knowledge with a 30-question chapter practice test
Classical Approach to International Trade Theory

1. 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

2. 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.

Forces that Affect Trade in Global Markets

3. Forces that Affect Trade in Global Markets

The global marketplace is diverse. While diversity provides opportunity, it also provides challenges. In this lesson, you'll learn about the forces that affect trade in the global market. You'll also have a chance to take a short quiz after the lesson.

Importing and Exporting in a Global Market: Definition, Process & Importance

4. Importing and Exporting in a Global Market: Definition, Process & Importance

The lifeblood of the global market is trade. In this lesson, you'll learn about the importance of importing and exporting and related concepts including trade deficits, balance of payments, and formal and informal barriers to trade.

National Trade Policies: Economic Impact & Market Share

5. National Trade Policies: Economic Impact & Market Share

This lesson will explain national trade policies. In doing so, it will highlight reciprocity and most-favored-nation status. It will also explain non-tariff restrictions and market share.

Trade Restrictions and Foreign Labor

6. Trade Restrictions and Foreign Labor

Discover why trade restrictions are sometimes used to combat cheap foreign labor. Learn about outsourcing, job protection, and infant industry strategies.

International Trade Regulations & Restrictions

7. International Trade Regulations & Restrictions

Importing and exporting are vital elements to a healthy U.S. economy. Businesses should be familiar with international laws regarding trade. This lesson defines imports and exports and discusses international trade regulations and restrictions.

Advantages and Disadvantages of Trade Protectionism

8. 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.

Tariffs and Quotas: Effects on Imported Goods and Domestic Prices

9. Tariffs and Quotas: Effects on Imported Goods and Domestic Prices

Explore what tariffs and quotas are and what effect they can have on the supply of imported goods. Find out how these two economic tactics can influence the prices you pay for many of the everyday items you may purchase.

Gains From Trade and the Benefit of Specialization

10. Gains From Trade and the Benefit of Specialization

Explore one of the most widely accepted ideas in economics - the idea that nations benefit from specialization and exchange, reaping gains from trade.

Treaties Under Article II of the U.S. Constitution

11. Treaties Under Article II of the U.S. Constitution

Treaties are an important part of international law. A treaty is a legally binding agreement made between two or more government entities. This lesson explains the difference between bilateral and multilateral treaties.

U.S. Trade Policy & Law

12. U.S. Trade Policy & Law

American industries depend upon the government for protection against imports and to promote domestic exports. In this lesson, you will be exposed to an overview of U.S. trade policy and law.

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

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