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International trade theory and development strategy ppt

26.12.2020
Muntz22343

Adam Smith and David Ricardo gave the classical theories of international trade. According to the theories given by them, when a country enters in foreign trade, it benefits from specialization and efficient resource allocation. The foreign trade also helps in bringing new technologies and skills that lead to higher productivity. Chapter 2 Trade Theories and Economic Development Chapter Outline Basis for International Trade - Production Possibility Curve - Principle of Absolute Advantage – A free PowerPoint PPT presentation (displayed as a Flash slide show) on PowerShow.com - id: 6f9048-MjEzM The Mercantilists View on Trade In the 17th century a group of men (merchants, bankers, government officials, and philosophers) wrote essays on international trade that advocated an economic philosophy known as Mercantilism. WMU ECON 3880 - International Trade Theory and Development Strategy (48 pages) Previewing pages 1, 2, 3, 23, 24, 25, 26, 46, 47, 48 of 48 page document View the full 12.4 The Critique of Traditional Free-Trade Theory in the Context of Developing-Country Experience (cont’d) •Balanced Trade and International Price Adjustments –Unrealistic (example: impact of oil price hikes of the 1970s) PowerPoint Presentation: Development Strategies Fair Trade Organisations Fair Trade o rganisations ensure that farmers in developing countries get a fair price and earn a decent income Consumers will pay a higher price for goods that have the fair trade mark because they want to contribute to better conditions for producers A trading company wishing to qualify for the International Fairtrade Certification Mark must meet the following criteria Product must reach trader as directly as possible

Trade Strategies for Development: Export Promotion versus Import Substitution •The IS industrialization strategy and results –Protected industries get inefficient and costly –Foreign firms benefit more –Subsidization of imports of capital goods tilts pattern of industrialization and contributes to BOP problems

Characteristics of developing Countries in Trade: (EICP) 1. rely heavily on exports of primary products with attendant risks and uncertainties. 2. also rely heavily on imports (machinery, consumer products) 3. have chronic deficits on their current accounts which depletes their reserves, causes currency instability, and hinders growth. International Trade • the branch of economics concerned with the exchange of goods and services with foreign countries • purchase, sale, or exchange of goods and services across national borders 4. International Trade Theories | Definition and Types. For the success of business, it is important to understand all the key types of international trade theories. The concept of international trading is not limited to, just sending and receiving products and services and putting all of the profits in the pockets. The theory of mercantilism aims at creating trade surplus, which in turn contributes to the accumulation of a nation’s wealth. Between the sixteenth and nineteenth centuries, European colonial powers actively pursued international trade to increase their treasury of goods,

International trade theory has been revitalised in recent years by the development of ideas which suggest that under certain conditions government intervention 

Presentation on theme: "Chapter 12 International Trade Theory and Development Strategy"— Presentation transcript: 1 Chapter 12 International Trade Theory  Chapter 12 International Trade and Development Strategy - PowerPoint PPT Presentation Chapter 8A:International Trade Theory and Development Strategy  International trade theories are simply different theories to explain deal of theory, policy, and business strategy that constitutes international trade. In Globalization 2.0, multinational companies ascended and pushed global development. 17 Nov 2008 Hi friends. this ppt tell about the International trade theories andf the practices. ( forget things like living standards or human development ) by encouraging that it generates government intervention and strategic trade policy 

Trade Strategies for Development: Export Promotion versus Import Substitution •The IS industrialization strategy and results –Protected industries get inefficient and costly –Foreign firms benefit more –Subsidization of imports of capital goods tilts pattern of industrialization and contributes to BOP problems

Strategic trade theory describes the policy certain countries adopt in order to affect the outcome of strategic interactions between firms in an international  Globalization Over the past several decades, the economies of the world have become increasingly linked: International Trade Portfolio Investments Direct  Presentation on theme: "Chapter 12 International Trade Theory and Development Strategy"— Presentation transcript: 1 Chapter 12 International Trade Theory  Chapter 12 International Trade and Development Strategy - PowerPoint PPT Presentation Chapter 8A:International Trade Theory and Development Strategy  International trade theories are simply different theories to explain deal of theory, policy, and business strategy that constitutes international trade. In Globalization 2.0, multinational companies ascended and pushed global development. 17 Nov 2008 Hi friends. this ppt tell about the International trade theories andf the practices. ( forget things like living standards or human development ) by encouraging that it generates government intervention and strategic trade policy  chapter 12 international trade theory and development strategy 12.1 economic globalization globalization is process which the economies of the world become.

Trade Strategies for Development: Export Promotion versus Import Substitution •The IS industrialization strategy and results –Protected industries get inefficient and costly –Foreign firms benefit more –Subsidization of imports of capital goods tilts pattern of industrialization and contributes to BOP problems

The theory of mercantilism aims at creating trade surplus, which in turn contributes to the accumulation of a nation’s wealth. Between the sixteenth and nineteenth centuries, European colonial powers actively pursued international trade to increase their treasury of goods, International trade theories are simply different theories to explain international trade. Trade is the concept of exchanging goods and services between two people or entities. People or entities trade because they believe that they benefit from the exchange. They may need or want the goods or services. Adam Smith and David Ricardo gave the classical theories of international trade. According to the theories given by them, when a country enters in foreign trade, it benefits from specialization and efficient resource allocation. The foreign trade also helps in bringing new technologies and skills that lead to higher productivity. Chapter 2 Trade Theories and Economic Development Chapter Outline Basis for International Trade - Production Possibility Curve - Principle of Absolute Advantage – A free PowerPoint PPT presentation (displayed as a Flash slide show) on PowerShow.com - id: 6f9048-MjEzM The Mercantilists View on Trade In the 17th century a group of men (merchants, bankers, government officials, and philosophers) wrote essays on international trade that advocated an economic philosophy known as Mercantilism. WMU ECON 3880 - International Trade Theory and Development Strategy (48 pages) Previewing pages 1, 2, 3, 23, 24, 25, 26, 46, 47, 48 of 48 page document View the full 12.4 The Critique of Traditional Free-Trade Theory in the Context of Developing-Country Experience (cont’d) •Balanced Trade and International Price Adjustments –Unrealistic (example: impact of oil price hikes of the 1970s)

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