About This Chapter
Key Factors in International Trade - Chapter Summary
Work through this chapter at your own pace to review a variety of international trade factors. Our expert instructors break down topics such as comparative advantage, free trade, trade deficits, economic integration and international trade economics. To help you reinforce your understanding of these international trade concepts, we've included interactive lesson quizzes and a chapter exam. You can access these lessons whenever you have free time, and our instructors will be happy to answer any questions you may have. When you're finished, you should be able to:
- Assess the politics and economics of international trade
- Identify the forces that impact trade in global markets
- Differentiate between comparative advantage and absolute advantage
- Evaluate the pros and cons of free trade
- Understand how trade balance can be achieved
- Explain the concepts of economic integration and economic growth
1. What is Economic Growth? - Definition, Theory & Impact
How do we measure and explain economic growth? This lesson will go through the various theories of economic growth which all try to explain how a country continues to increase production.
2. 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.
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. Comparative Advantage: Definition and Examples
Understand the definition of comparative advantage, using two goods as an example. This key lesson incorporates the basic foundations of economics into one foundational theory explaining what goods and services that people,and nations, should produce and for whom they should produce it.
5. Absolute Advantage in Trade: Definition and Examples
In this lesson, you'll learn what absolute advantage is and how to easily identify it within examples of international trade. In addition, you'll learn the important difference between absolute advantage and comparative advantage.
6. 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.
7. Economic Integration: Theory, Levels & Types
There has been a trend towards economic integration over the past decades. In this lesson, we'll learn about economic integration, its theoretical basis, and different levels of integration.
8. Achieving Trade Balance: Trade Deficit and Surplus Examples
Find out what trade balance, trade deficit, and trade surplus are. Learn about some recent examples that help clarify trade deficit and surplus. Explore what countries have a surplus and what countries have a deficit.
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Other chapters within the Business 120: International Business course
- Introduction to International Business
- How Culture Affects International Business
- Global Economic Development
- International Trade Management & Regulation
- Exchange Rates & Currency Changes
- International Market Entry Strategies
- Management & Human Resources in International Business
- International Operations Management
- Global Marketing and R&D Strategies
- Communication & Decision-Making in Global Business
- Impact of Globalization on Organizations
- Impact of Globalization on Countries
- Global Business Ethics
- Future of Globalization
- Studying for Business 120