About This Chapter
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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Other chapters within the Business 320: Advanced International Business course
- Globalization & International Business
- Organizational Structure & Communication
- Understanding Global Economic Environments
- World Trade Organization
- Entering the Global Marketplace
- Regional Integration
- Global Money System
- Exchange Rate Determination & Forecasting
- Factors of Economic Growth & Development
- Foreign Direct Investments
- Balance of Payments
- International Business Strategy
- Crisis Management & International Business
- International Business Ethics