Globalization & International trade

Globalization & International trade

By Yvan Kokora

Theories of international trade

Intro : absolute advantage and comparative advantage, as well as newer theories like the Heckscher-Ohlin model and Porter's National Competitive Advantage. 
theories of international trade : Mercantilism, Absolute Advantage, Comparative Advantage and Heckher-Ohlin Theory.

Multiple Choice

How to use the absolute advantage in a business trade?

• Focus solely on reducing production costs without considering trade benefits.
• Trade only with local suppliers regardless of efficiency.
• Utilize your unique production efficiencies to trade for goods or services that are less efficient for you to produce.

Trade Barriers & Protectionism

Trade barriers and protectionism are government policies designed to restrict international trade, often to shield domestic industries and jobs from foreign competition, using tools like tariffs, quotas, and subsidies. 

Multiple Choice

Which one shows the 4 barriers to trade?

• Tariffs, quotas, subsidies, non-tariff barriers
• import duties, export taxes, trade agreements, currency fluctuations

International trade agreement

International trade agreements are pacts between countries to regulate trade, often aiming to reduce barriers like tariffs and quotas, and promote economic cooperation. They can be bilateral (between two countries) or multilateral (between multiple countries) and cover various sectors like goods, services, and intellectual property. 

Multiple Choice

What are examples of international trade agreements?

• Examples of international trade agreements include NAFTA (now USMCA), the European Union's trade agreements, and the Trans-Pacific Partnership (TPP).
• The Paris Agreement on Climate Change
• The United Nations Charter

Multiple Choice

Which one of this summary the Globalization & International trade?

• Globalization is the process of increased interconnectedness among countries, and international trade is a key aspect of this process.
• International trade has no impact on local economies.
• Globalization only refers to cultural exchange between countries.