BUS 346 Chapter Notes - Chapter 6: Leontief Paradox, New Trade Theory, List Of Auto Parts

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 346
• Professor: Ebru Ipek

Document Summary

Describe the relation between international trade volume and world output and identify overall trade patterns. Describe the political, economic, and cultural motives behind governmental intervention in trade. List and explain the methods governments use to promote and restrict international trade. Describe mercantilism and explain its impact on world powers and their colonies. Explain the theories of absolute advantage and comparative advantage. Explain the factor proportions and international product life cycle theories. Explain the new trade and national competitive advantage theories: international trade. International trade: purchase, sale, or exchange of goods and services across national borders. Japan has limited territory to grow fruits and vegetables. It sells electronics, cars, and auto parts to canada. It then uses the proceeds from the sale of products to buy canadian-grown fruits, vegetables and beef. 20 percent of all jobs in canada are directly or indirectly derived from exports. Over 150,000 business establishments were engaged in goods importing in.