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Comparing Traditional and Contemporary International Trade Theories, Slides of International Management

An overview of various international trade theories, categorized into traditional and contemporary approaches. Traditional theories include mercantilist, neomercantilist, absolute advantage, comparative advantage, factor proportions, and eclectic theory. Contemporary theories consist of product life cycle, country similarity, porter's diamond, and internalization theory. Each theory is briefly explained, with a focus on country similarity theory and porter's diamond.

Typology: Slides

2013/2014

Uploaded on 01/29/2014

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International Trade Theories
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International Trade Theories

Traditional theories

  • Mercantilist
  • Neomercantilist
  • Absolute Advantage Theory
  • Comparative Advantage Theory
  • Factor Proportions Theory

Country Similarity Theory

  • Geographical proximity
  • Demand Conditions
  • Historical/Political ties

Porter’s Diamond

  • Factor Endowment
  • Demand Conditions
  • Related and Supporting Industries
  • Firm Strategy, Structure and Rivalry

MNC/TNC vehicle of Internationalization

  • Production Capacity
  • Size of Assets (Chaebol of South Korea, Walmart. Toyota
  • Influence on Economy, Technology, Politics Socio-cultural climate