国际商务环境 International Business Environment Trade Theory

国际商务环境 International Business Environment

International Trade Theory

国际商务环境 International Business Environment

International Trade TheoryWhat is international trade?– Exchange of raw materials and manufactured

goods (and services) across national borders

Classical trade theories:– explain national economy conditions--country

advantages--that enable such exchange to happen

New trade theories:– explain links among natural country advantages,

government action, and industry characteristics that enable such exchange to happen

Implications for International Business

国际商务环境 International Business Environment

Classical Trade TheoriesMercantilism (pre-16th century)– Takes an us-versus-them view of trade – Other country’s gain is our country’s loss

Free Trade theories– Absolute Advantage (Adam Smith, 1776) – Comparative Advantage (David Ricardo, 1817) – Specialization of production and free flow of goods

benefit all trading partners’ economies

Free Trade refined– Factor-proportions (Heckscher-Ohlin, 1919) – International product life cycle (Ray Vernon, 1966)

国际商务环境 International Business Environment

The New Trade TheoryAs output expands with specialization, an industry’s ability to realize economies of scale increases and unit costs decrease Because of scale economies, world demand supports only a few firms in such industries (e.g., commercial aircraft, automobiles) Countries that had an early entrant to such an industry have an advantage:– Fist-mover advantage – Barrier to entry

国际商务环境 International Business Environment

New Trade TheoryGlobal Strategic Rivalry– Firms gain competitive advantage trough:

intellectual property, R&D, economies of scale and scope, experience

National Competitive Advantage (Porter, 1990)

国际商务环境 International Business Environment

Mercantilism/NeomercantilismPrevailed in 1500 - 1800– Export more to “strangers” than we import to

amass treasure, expand kingdom– Zero-sum vs positive-sum game view of trade

Government intervenes to achieve a surplus in exports– King, exporters, domestic producers: happy – Subjects: unhappy because domestic goods stay

expensive and of limited variety

Today neo-mercantilists = protectionists: some segments of society shielded short term

国际商务环境 International Business Environment

Absolute AdvantageAdam Smith: The Wealth of Nations, 1776 Mercantilism weakens country in long run; enriches only a few A country– Should specialize in production of and export products for

which it has absolute advantage; import other products – Has absolute advantage when it is more productive than another country in producing a particular productG

CocoaG: Ghana K: S. Korea

K K' G'

Rice

国际商务环境 International Business Environment

国际商务环境 International Business Environment

Comparative AdvantageDavid Ricardo: Principles of Political Economy, 1817 Country should specialize in the production of those goods in which it is relatively more productive... even if it has absolute advantage in all goods it produces Absolute Advantage is a special case of Comparative AdvantageG

Cocoa

G: Ghana K: S. Korea

K

K'

G'

Rice

国际商务环境 International Business Environment

国际商务环境 International Business Environment

Heckscher (1919)-Ohlin (1933) (1919)Differences in factor endowments not on differences in productivity determine patterns of trade Absolute amounts of factor endowments matter Leontief

paradox:– US has relatively more abundant capital yet imports

goods more capital intensive than those it exports – Explanation(?): US has special advantage on producing new products made with innovative technologies These may be less capital intensive till they reach massproduction state

国际商务环境 International Business Environment

Theory of Relative Factor Endowments (Heckscher(Heckscher-Ohlin)Factor endowments vary among countries Products differ according to the types of factors that they need as inputs A country has a comparative advantage in producing products that intensively use factors of production (resources) it has in abundance Factors of production: labor, capital, land, human resources, technology

国际商务环境 International Business Environment

International Product Life-Cycle (Vernon) LifeMost new products conceived / produced in the US in 20th century US firms kept production close to their market initiallyAid decisions; minimize risk of new product introductions Demand not based on price; low product cost not an issue

Limited initial demand in other advanced countries initiallyExports more attractive than overseas production

When demand increases in advanced countries, production follows With demand expansion in secondary marketsProduct becomes standardized production moves to low production cost areas Product now imported to US and to advanced countries

国际商务环境 International Business Environment

国际商务环境 International Business Environment

Classic Theory ConclusionFree Trade expands the world “pie” for goods/services Theory Limitations:Simple world (two countries, two products) no transportation costs no price differences in resources resources immobile across countries constant returns to scale each country has a fixed stock of resources and no efficiency gains in resource use from trade full employment

国际商务环境 International Business Environment

New Trade TheoriesIncreasing returns of specialization due to economies of scale (unit costs of production decrease) First mover advantages (economies of scale such that barrier to ent …… 此处隐藏：4357字，全部文档内容请下载后查看。喜欢就下载吧 ……