BUA 343 Lecture Notes - Lecture 6: Factor Endowment, Absolute Advantage, Competitive Advantage

• School: University of Maine
• Department: Business Administration
• Course: BUA 343
• Professor: Myer

Document Summary

Chapter 6 notes: theories of international trade and investment. Comparative advantage superior features of a country that provide unique benefits in global competition, typically derived from either natural endowments or deliberate national policies. Competitive advantage distinctive assets or competencies of a firm that are difficult for competitors to imitate and are typically derived from specific knowledge, capabilities, skills, or superior strategies. Scholars have used this to refer to advantages possessed by nations and individual firms in international trade and investment. Tends to harm firms that import restricting imports reduces the choice of. Mercantilism belief that national prosperity is the result of a positive balance of trade, achieved by maximizing exports and minimizing imports products to buy. Free trade relative absence of restrictions to the flow of goods and services between nations. Consumers and firms can more readily buy the products they want. Lower-cost imports help reduce company expenses, & help consumers save.