Theories of International Trade Essay Examples and Topics

How Does Foreign Trade Impact on The US Economy?

Introduction Trade between the United States and the rest of the world has played a significant role in the growth and development of the US economy over the past years. The growth of foreign trade in the US grew much faster after the Second World War. The trade between the US and the rest of […]

Global Trade and Financial Institutions

Defining the issue In 1999, something peculiar happened in Europe under the auspices of European Union. Some countries in Europe came together to set up new economic policy arrangements that will govern them economically. This was one of the most momentous occasions happening in Europe since the adoption of the common market protocol way back […]

Issues in International Trade

Introduction International trade has evolved and continue to evolve. But in its present form it can be described as the by-product of globalization, political and ideological conflict, breakthroughs in technology and overdependence on fossil fuels. Every major adjustments made were linked to these forces. As a result it can be said that three of the […]

“Economy” by Nuala Zahedieh

The development of the Atlantic empire contributed to the commercialisation of the British economy during the 17th-18th centuries significantly because of changing the economic priorities, modifying capital distribution principles, and transforming markets. According to Zahedieh, the Atlantic empire played the key role in designing the economic patterns used in Britain during the next century (Zahedieh […]

Uses of Currency Hedging in International Trade

Introduction International trade generates several benefits to the countries and the players involved in the process. However, the fluctuations in the exchange rate between countries makes international trade quite risky. Statistics show that currency risk contributes about 40% of the total risks of international trade (Campbell, Medeiros & Viceira 2010). Most players in the international […]

‘Lin and Chang debate’ summary

The debate,’ whether policies to encourage industrial upgrading should conform to current comparative advantages or aim at missing out on the ladder’, saw a battle of brains, with the protagonists, Lin and Chang, renowned experts in their own fields engaging in a productive and healthy debate, arrived to the same conclusions while at the same […]

China & India: Theories of International Trade

Abstract This paper dwells upon a trade theory that best explains the economic growth of China and India. It is stated that the Heckscher-Ohlin theory is the most applicable in this case. Thus, China and India have entered the global arena due to their competitive advantage, comparatively cheap labor force. Introduction China and India are […]

Pluralism and Neo-Liberalism on a Contemporary Workplace

This essay seeks to assess and clearly discus certain aspects within industrial relation context. Importantly, it looks at the challenges to pluralism frame on industrial relation while also addressing neo-liberalism concept on a contemporary workplace. The latter is considered from the perspective of how it affects the political, social, and economic environment at large. From […]

Is International Trade a Zero Sum Game?

Introduction International trade has of recent increased rampantly due to free flow of information across the borders majorly enhanced by good communication. With the rapid development of technology, many businesses have been endowed with the power to interact with overseas producers and consumers of different type of goods and services. Benefits of international trade International […]

Porter’s Diamond Model

Competitive advantage of nation’s theory Michael Porter introduced the Diamond model for competitive advantage of nations that analyses the competitiveness of a nation or even a major geographic region in the global competition. This moves away from the traditional economic factor of comparative advantage of countries such as land, resources, labor, population and location (Porter, […]

Political Economy of International Trade

Introduction Governments use various methods to intervene in markets for different reasons. Modes of government interventions in markets include the use of tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative policies, and antidumping policies. Hence, the government can influence the market either directly as a competitor or indirectly through tariffs and regulations. […]

A Mechanism for Combating Mercantilism and Producing Balanced Trade

Introduction This report discusses whether or not the present form of mercantilism is self-destructive and hence self-correcting strategy. The writer argues mercantilism, under classical theory was seen as a destructive policy. Other forms such as monetary mercantilism self sustaining and beneficial. The report further discusses the mechanism that a trade deficit country could effectively fulfill […]

Porter’s concept of the ‘diamond’

Introduction Michael Porter in his book The Competitive Advantage of Nations (1990) enumerates that countries do not inherited by companies operating within a country rather is created. The central question that is posed in the book is “Why do some social groups, economic institutions, and nations advance and prosper?” (Porter, 1990, p.xi). Though the book […]

Summarizing of “Unpredictable Tides” from The Economist

Unpredictable Tides is the article from The Economist, the weekly publication, where news and internationals affairs are concerned. This article was published July 23, 2009 for the first time. The main idea of this article is all about world trade and the challenges, current economics faces because of the crisis. Global economic still cannot overcome […]

Open Economy: International Trade and Finance

An open economy involves carrying out of economic, businesses and trade across the border. It means the opposite of closed economy in which international trade and business cannot take place. Exporting is a term used in international trade to refer to the act of selling goods and services t across border, while importing involves buying […]

IMF Conditionality Policy Causes and Effects

Twenty-nine member countries including the United States, Canada, France and the United Kingdom ratified the initial agreements that gave birth to the International Monetary Fund, or the IMF, and the World Bank in 1944, largely as a response to the decimated state of European finances and infrastructure as a result of the Second World War […]

How Exchange Rates Have an Impact on International Trade

Introduction In finance, an exchange rate can be defined as the value of one country’s currency in terms of another country’s currency. Thus, the rate at which two currencies can be exchanged for the other. We cannot ignore the importance of international trade as all countries have limited resources, which may limit their production capability. Exchange rate and international trade […]

Major trade theories

A trade theory is an assumption related to how businesses strategies get in place to achieve an organization’s goals and missions. These assumptions give the key ways of achieving realistic business goals in any business environment. Trade theories aim at overcoming trade barriers both locally and internationally. Every business environment has utilizes one or a […]