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CHAPTER 5: INTERNATIONAL TRADE THEORY, stage 3 - Coggle Diagram
CHAPTER 5: INTERNATIONAL TRADE THEORY
benefit volume and pattern of international trade
economic transaction that are made between countries
goods- machinery, raw materials and food
services- travel services, payment for foreign patent
benefit of international trade
increase revenue
job creation
longer product
easier cash flow management
better risk management
volume of international trade
continuous increase
world merchandise export
china (goods)
united states (services)
international trade pattern
destination of exports
the source of imports
physical quantities
trade interdependence
companies in developed
mercantilism
trade surplases
government intervention
colonialism
flaws
cause the international trade to be restricted
economic development for colonies can be affected
absolute advantage
comparative advantage
factors proportions theory
labor on the one hand, land
capital equipment
the leontief paradox
stages of the product life cycle
the new product
stage 1
the maturing product
stage 2
standardized product
new trade theory
national competitive advantage
stage 3