Please enable JavaScript.
Coggle requires JavaScript to display documents.
Theories of international trade - Coggle Diagram
Theories of international trade
Merncatilism
In mercantilism, trade at the global level is unalterable. For trade to help the accumulation of wealth, inflows and outflows must be controlled in order to maintain a positive balance of payments.
Absolute advantage
Absolute advantage is the ability of a person, company or country to produce a good, having to use fewer factors of production than another.
Comparative advantage
Comparative advantage is the ability of an individual, company or country to produce a good using relatively fewer resources than another.
Heckscher-Ohlin
The Heckscher-Ohlin model is a model used to understand the functioning of trade flows at the international level. This model assumes Ricardian theories, offering a scientific explanation for what David Ricardo called "comparative advantage".
https://www.youtube.com/watch?v=W_upI5crUXc
"New theories" of international trade
Intra-industry trade
Intra-industry trade is a situation in which a country imports and exports goods or services that belong to the same sector.
Imperfect competition
Imperfect competition is a situation in which individual sellers have the ability to significantly affect the market price of their products or services.
Economies of scale
An economy of scale is a situation in which a company reduces its production costs as it expands. It is a circumstance in which the more a company produces, the lower the cost to the company of producing a product.
Monopolistic competition
Monopolistic competition is a type of imperfect competition in which there is a high number of sellers in the market who have a certain amount of power to influence the price of their product.
Reciprocal dumping model
occurs when two monopolistic companies dump, each in the other's market, which may result in the exchange of the same merchandise, if transport costs do not prevent it. which would be added to the one they would still obtain in their own market.
https://www.youtube.com/watch?v=Ex2tsUlAncg
Center-periphery
The idea is that the countries in the center (developed) were in charge of producing industrialized goods and those in the periphery (underdeveloped) were in charge of raw materials, and thus each one benefited in what it was good at.
Newest theories
Stylized facts
Stylized facts are the behaviors observed and characterized as typical on a specific subject of the economy
Heterogeneous firms model
Trade selects firms. Trade liberalization affects companies asymmetrically, since it benefits the larger and more productive ones, while it harms the small and non-exporting ones, some of which will exit the market. Thus, what is called "selection of the fittest" takes place.
Sunk costs
Sunk costs are those costs that have already been incurred and cannot be recovered in the future. They include time, money or other resources spent on a project, investment or other activity that cannot be recovered.
financial constraints
financial constraints arise in the midst of an economic crisis in which the performance of banking institutions deteriorates, threatening the stability of intermediation activity within an economy.
Latest theories
Exports are important because they are evidence of the capacity to produce goods and services
Global value
A global value chain is the set of activities necessary for the production of a good or service, which are carried out in different geographical locations.
Industrialization
Industrialization refers to the production of goods on a large scale and also refers to the process by which a society or state moves from an agricultural economy to an industrialized economy.
https://www.youtube.com/watch?v=DS6guX5est0