Purchase Solution

Globalization: what are traditional international trade theories?

Not what you're looking for?

Ask Custom Question

What are some of the traditional international trade theories that support the concept of globalization?

Purchase this Solution

Solution Summary

This explains the traditional international trade theories

Solution Preview

The theory of comparative advantage is likely to be applied more frequently in the global markets today. This is because it explains why it can be beneficial for two countries to trade, even though one of them may be able to produce every kind of item more cheaply than the other.

While international trade has been present throughout much of history, its economic, social, and political importance have been on the rise in recent centuries, mainly because of industrialization, advanced transportation, globalization, multinational corporations, and outsourcing.

WHY DO COUNTRIES TRADE WITH EACH OTHER?

- To obtain goods that they cannot produce themselves
- To increase choice for their consumers
- To obtains goods at a cheaper price than what they can produce themselves
- To make more revenues and profits. It an extra place in which to sell their goods
- Countries specialize in the production of goods and services at which they are better.
- To exploit a comparative ...

Purchase this Solution


Free BrainMass Quizzes
Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Motivation

This tests some key elements of major motivation theories.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Operations Management

This quiz tests a student's knowledge about Operations Management