国际商务电子教案Chap004.docVIP

International Business: Competing in the Global Marketplace Fifth Edition Chapter 4 PAGE PAGE 61 4 4 International Trade Theory Learning objectives Explain the evolution of different trade theories Discuss the relevance of the New trade theory and Porters diamond Explain how these theories can help firms decide where to locate production activities Show, from text book examples, the case for free trade and how all countries can benefit from free trade Discuss the lobbying power of large corporations Explain the influence large corporations can exert on the policies of both home and host countries. Suggest the conditions under which governments should consider adopting policies that can influence an industrys competitiveness and/or the flow of trade. This chapter presents the main theories of international trade. Trade is not new to the world and has bee occurring for thousands of years. It is only in the fifteenth century that we began to see explanations for trade. Why does it occur and is it beneficial. Since then several trade theories have been developed and there is always a constant effort to refine existing theories on an on going basis. Most can be placed on a continuum of trade dependencies with total dependence on one end and total independence on the other. Having completely free trade is certain to hurt some domestic industries that are not competitive on a worldwide basis. Workers in the textile industry do not like losing their jobs to workers in other countries who are willing to work for lower wages. This will be looked at in more detail in Chapter 5. Yet consumers want to purchase goods with the best price/quality tradeoff. The opening case goes to the heart of a debate that is being played out right now in the US. It is being argued that free trade leads to a migration of low skilled low wage jobs resulting in a hollowing out of the U.S knowledge based economy leaving behind white collar high w