BUS201 Lecture Notes - Lecture 9: New Trade Theory, Bertil Ohlin, Eli Heckscher
15 Mar 2020
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Document Summary
Understand why nations trade with each other benefits of trade. Understand the theories explaining trade flows between nations. Understand the theories of internationalisation of the firm. Be familiar with the arguments of those who maintain that government can play a proactive role in promoting national competitive advantage in certain industries. Examine the important implications that international trade and internationalisation theory holds for business practice. Free trade is a myth, specific arrangements and specifications are organised between counties. Free trade - a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country. Trade theory shows why it is beneficial for a country to engage in international trade even for products it is able to produce for itself. We should import things that we cannot make.
