Top Modern Theories of International Trade | Complete Guide 1.COUNTRY SIMILARITY THEORY: As we already are aware of the fact that international trade takes place between two industries of two countries. But international trade can also take place within each industry (i.e., intra industry) between two countries. Intra-industry trade amounts to nearly 40 per cent … Read more
International Trade Theories (Part ii) 1.THEORY OF ABSOLUTE COST ADVANTAGE This theory was proposed by the Scottish economist namely Adam Smith in 1776. It is based on the principle of Division of labour. According to him application of this principle to international scenario helps the countries to specialise in the production of those goods in … Read more
INTERNATIONAL TRADE THEORIES To better understand how modern global trade has evolved, it’s important to understand how countries traded with one another historically. Over time, economists have developed theories to explain the mechanisms of global trade. International Trade Theory refers to the concepts, models, and explanations justifying why countries undertake trade with one another and … Read more
international business approaches If a firm wants to expand its business and want to explore new opportunities in foreign markets, here the approaches of international business help them in grabbing new, opportunities, managing and organizing the business affairs, managing the workforce requirements of a business, strategic planning, and telling them how to run a sustainable … Read more
internationalization Internationalization (or internationalisation) is the process of designing and developing a product, service, or system in a way that makes it adaptable and usable in multiple countries and cultures. In commerce, internationalization means getting a business to a place where it can successfully trade in different markets. Internationalization has been defined differently by different authors. One … Read more
Growth strategies Before embarking on the journey of international expansion, businesses must first carefully assess their motivations and goals. Market entry is not a one-size-fits-all endeavour; rather, it demands a customized approach based on factors such as the industry, target market and available resources. Are you looking to tap into new customer bases, reduce dependence … Read more
A person cannot meet all of his requirements using only his available resources. He needs to trade goods and services with other people. In a similar way, a nation may meet all of its needs using its own resources. But, there are some circumstances where it must depend on other nations. This dependence on a … Read more
If we talk in common language, we can explain ethics as an accepted principles of right or wrong that govern the conduct of a person, the members of a profession, or the actions of an organization. In the same way, business ethics can be explained as the guiding principles that companies and individuals hold themselves … Read more
International trade International trade (or foreign trade) is the exchange of goods and services between different countries. Foreign trade, which is the widest concept, has both advantages and disadvantages. The advantages and disadvantages of foreign trade significantly influence the overall economic disposition. Foreign trade allows nations to specialize in production. It creates larger but more segmented markets that, in … Read more
What is internal trade? Advantages & Disadvantages of Internal Trade Internal Trade: Pros & Cons Internal trade also termed as Domestic trade or Home trade is a trade where buying and selling transactions are done in between buyers and sellers of same locality, town, village, cities or from different states but within the same country … Read more