all the trade theories you have studied and reviewed in Chap 6 of the textbook (
ID: 1226894 • Letter: A
Question
all the trade theories you have studied and reviewed in Chap 6 of the textbook (mercantilism, absolute advantage, comparative advantage, factor of endowment, product life cycle, overlapping demand, new trade theory, competitive advantage of nations), please choose two, describe them, and apply them to the current global economy, and explain what they both mean for management in the global markets.all the trade theories you have studied and reviewed in Chap 6 of the textbook (mercantilism, absolute advantage, comparative advantage, factor of endowment, product life cycle, overlapping demand, new trade theory, competitive advantage of nations), please choose two, describe them, and apply them to the current global economy, and explain what they both mean for management in the global markets.
all the trade theories you have studied and reviewed in Chap 6 of the textbook (mercantilism, absolute advantage, comparative advantage, factor of endowment, product life cycle, overlapping demand, new trade theory, competitive advantage of nations), please choose two, describe them, and apply them to the current global economy, and explain what they both mean for management in the global markets.
Explanation / Answer
Competitive advantage of nations: Some nations in this world have much more advantage over others, During world war II most of the europen countries got destroyed by war. But, they quickly started re-construction and before 1960 they were all doing well, So within 10-15 years all the re-construction work was done and people were enjoying high standards of living. But, in contrast India did not get destroyed in world war II, but even after 70 years of development its infrastructure is no where close to that of UK in 1960's this is natural competitive advantage of UK.
Product life cycle: Today most of the world's computer components and computers are made in China or south east asia, These products start their life cycle as circuit boards, they go through various stages of development before becoming a finished product in China, These products are now shipped to Europe and US, They are likely to be used for 5-6 years, Then they are sent to recyclers.
These recyclers find it very difficult to recycle them, They ship it to back to China as scrap which will end up as copper, gold and rubbish.
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