GMS 522 Lecture Notes - Lecture 3: International Monetary Fund, Uruguay Round, Umbrella Organization

48 views4 pages
GMS 522
Page 1
GMS 522
Week 3
Chapter 2
International Trade Policy and Trade institutions
Theoretical Foundations
Mercantilism
Theory of Absolute Advantage:
The most efficient producer of a certain product
How to allocate resources to produce certain product
Should produce the product that it’s best at making
Theory of Competitive Advantage:
Ratio
What a country should focus production on based on opportunity cost
Heckscher-Ohlin Model:
The more resources used to produce a product, the more likely you should export it
Product Cycle Theory
Country Similarity Theory (Linder):
Countries will exchange goods more so when they have similar needs
Krugman’s Model of International Trade:
Countries will trade only if they can pull profits
Diamond of National Advantage
Diamond of National Advantage
Theory suggests that countries act as competitors
Unlock document

This preview shows page 1 of the document.
Unlock all 4 pages and 3 million more documents.

Already have an account? Log in

Document Summary

The most efficient producer of a certain product. How to allocate resources to produce certain product. Should produce the product that it"s best at making. What a country should focus production on based on opportunity cost. The more resources used to produce a product, the more likely you should export it. Countries will exchange goods more so when they have similar needs. Countries will trade only if they can pull profits. Theory suggests that countries act as competitors. Dunning"s oli framework: ownership advantages, location advantages, internalization advantages. Search costs (ex: costs associated with funding suitable input suppliers, agents, and distributers) Contracting costs (ex: costs associated with negotiating and drawing up contracts) Monitoring costs (ex: costs associated with monitoring costs) Enforcement costs: (ex: the costs associated with enforcing contracts) General agreement on tariffs and trade (gatt) Sets out rules for non-discrimination, transparent procedures, and settlement of disputes in international trade.

Get access

Grade+
$10 USD/m
Billed $120 USD annually
Homework Help
Class Notes
Textbook Notes
40 Verified Answers
Study Guides
Booster Classes
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Class Notes
Textbook Notes
30 Verified Answers
Study Guides
Booster Classes