Module 3-Theories of International Business.pptVIP

Module 3 Theories of International Business I. Trade Theories # Attempt to address the question of what nations trade # Predict the direction, composition and volume of goods traded # Focusing on: what/ whom/ how muc 2. Absolute Advantage A theory holding that it is market forces, not governments, that should determine the direction, composition and volume of international trade. And each nation should specialize in producing those goods that it could produce most efficiently(had an absolute advantage). Table 1: Production before S