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Unit 1 What is International Business? 1. Text: The Nature of International Business 2. Supplementary Reading: Forms of International Business 一. What is International Business? 二. The Theory of Comparative Cost (Comparative Advantage) 1. Characteristics: David Ricardo, John Stuard Mill, C19th Different countries or regions have different production possibilities; Trade between countries can be profitable for all, even if one of the countries can produce every commodity more cheaply; If each country specializes in products in which it has a comparative advantage (greatest relative