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INTERNATIONAL COMMERCE AND ITS THEORIES ALONG THE HISTORY - Coggle Diagram
INTERNATIONAL COMMERCE AND ITS THEORIES ALONG THE HISTORY
CLASSIC THEORIES
Mercantilists and the trade balance
They based their system by the principle that the world's wealth was unique, and for ende, the acumulation of the largest possible share of that wealth would be possible by maximizing their exports and by limiting their imports via tariffs.
SMITH & the absolute advantage
Adam Smith developed a theory more eloquent based of the ability of a person, group, country to produce something or give a service in less time and in a cheaper way than its competitors.
It can be reach by elaborating the good or service with a lower comsumption of materials, time or effort.
RICARDO& the comparative advantage
Ricardo based the theory on the principle of how nations get benefits from trading and how using the opportunity cost we could find where was better to produce any kind of product.
H-O MODEL & the factors of abundance
The Heckscher-Ohlin model calculate the equilibrium between two nations looking at their diferences of specialties and natural resources, promote the import of good which can not be produced by a nation itself and that nations should import good which they have or produce in abundance, the system also evaluates social factors such as labor
NEW THEORIES
STRUCTURALISM
https://www.youtube.com/watch?v=rNYwoZbcweg
ECONOMIES OF SCALE
Economies of scale are the cost advantages or disadvantages of a producer to produce by larger or smaller amount of goods. Looking for efficiency and bigger profits.
INTRA-INDUSTRY TRADE
https://www.youtube.com/watch?v=Twtj76Z2vgc
STRATEGIC TRADE THEORY
https://www.youtube.com/watch?v=Ifde3VZKG8o
IMPERFECT COMPETITION
What we called imperfect competition is when in a market the rules of perfect competition do not meet.
Enviroment where they have the freedom to put their own prices, their entry and exit barriers and try to get their part of the cake.
EVOLUTIONISTS
Evolutionists is based on the development of us as a society and how it affects or determine our economies and the way we trade or produce wealth.
Supporters of this theory supports failure as they see failure as a way to learn and improve the system also they see the economy as a revolutionary system which is constantly changing and developing.
BRAND NEW THEORIES
FINANCIAL RESTRAINTS
financial policies that create rent opportunities in the banking and production sectors. It is argued that these rents may curtail a bank's moral hazard behaviour and enhance incentives for monitoring and savings mobilization.
SUNK COSTS
https://www.youtube.com/watch?v=kVFGXomwvxg
FIRM HETEREOGINITY, PRODUCTIVITY & STATUS OF EXPORTER
The original Melitz (2003) model considers a world of symmetric countries, one factor (labor) and one industry, but it can be easily extended to the setting of asymmetric countries. 4 In each country, the industry is populated by a continuum of firms differentiated by the varieties they produce and their productivity.
Therefore, recent international trade literature has primarily focussed on the role of firm heterogeneity in international markets. The idea behind this research is that differences in the behaviour of firms in international markets are explained by differences in the firm characteristics
firm heterogeneity is generated by assigning productivity levels to firms randomly. Conditional on their productivity draw, firms then sort endogenously into exporter/non-exporter status.
LATELY THEORIES
SERVICES
Services are a major part of the global economy, generating more than two-thirds of global gross domestic product (GDP), attracting over three-quarters of foreign direct investment in advanced economies, employing the most workers, and creating most new jobs globally. Services have always been traded. International transportation is as old as trade itself, and financial and insurance services followed shortly after.
ECONOMIC COMPLEXITY
https://www.youtube.com/watch?v=0JC24CBVsdo
GLOBAL VALUE CHAINS
The procces of making a product with diferent parts made around the globe or even assembling it in diferent parts of the globe in which in all of these steps the product gains value.