IBUS1101 Lecture Notes - Lecture 5: Cochlear Implant, Leontief Paradox, Tax Incentive
27 Jul 2018
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Lecture 5 (12/4/18) theories of international trade and. Theories provide explanations that help us understand better how the world and especially business works in practice. (need evidence to support) France climate/soil ideal for producing wine, saudi arabia natural abundance of oil (petroleum), japan r+d for producing cars, india r+d for computer software. Competitive advantage (firm) explains how individual firms gain + maintain firm-specific advantages (relative to competitors) that lead to superior performance: collective competitive advantages held by firms = basis for competitive advantage of nation at large, e. g. Dell"s efficiency in the management of global supply chain, samsung technological leadership in flat-panel televisions, cadbury capabilities in international marketing and distribution. If two countries capable of producing two commodities engage in the free market, each country will increase its overall consumption by exporting the good for which it has a competitive advantage, and importing the other good: e. g.
