I need help with the following, a 700 - 1,050-word paper in which I compare and contrast the following major trade theories:
? Absolute advantage.
? Comparative advantage.
? Heckscher-Ohlin factor endowment
Then, select one of the major trade theories and answer the following question: What cultural, physical, economical, financial, and political impediments might prevent the successful application of your selected trade theory? Be sure to cite your references in your paper.
One approach to helping you with an assignment like this one is to look at information from various source for each section, which can act as a tentative outline for your paper. Like all academic papers, it will have an Introduction (e.g. introduce topic, state thesis or purpose statement: The purpose of this paper is to compare...), Body (e.g. comparisons; application of one theory) and Conclusion (e..g restate purpose and tie up main points).
1. I need help with the following, a 700 - 1,050-word paper in which you compare and contrast the following major trade theories: Absolute advantage, Comparative advantage, Heckscher-Ohlin factor endowment.
An economic theory can be compared to a map of a piece of land, which gives an idea of what a certain piece of land looks like, even though nature is too complex to be described completely by it. While a map can help us understand an unknown terrain, economic theories help us understand economic interactions between individuals or countries. For example, why individuals or countries trade with each other and why trade may benefit the parties involved. http://www.auburn.edu/~johnspm/gloss/comparative_advantage
For example, the Heckscher-Ohlin theory explains why countries trade goods and services with each other. First developed by Eli Heckscher (1879-1952) and later developed by fellow Swedish economist Bertil Ohlin (1899-1979) in 1933, Heckscher-Ohlin trade theory is a theory to explain the existence and pattern of international trade based on a comparative cost advantage between countries producing different goods. Heckscher and Ohlin state that this advantage exists because of the relative resource endowments of the countries trading. http://www.economyprofessor.com/economictheories/heckscher-ohlin-trade-theory.php
According to the Heckscher-Ohlin theory, one condition for trade between two countries is that the countries differ with respect to the availability of the factors of production. They differ if one country, for example, has many machines (capital) but few workers, while another country has a lot of workers but few machines. According to the Heckscher-Ohlin theory, a country specializes in the production of goods that it is particularly suited to produce. Countries in ...
Referring to one trade theory, this solution explains what cultural, physical, economical, financial, and political impediments might prevent the successful application of your selected trade theory. Supplemented with an article to further the discussion on trade theories.