Lesson-5.pdf

5: THEORIES OF INTERNATIONAL TRADE AND INVESTMENT LEARNING OBJECTIVES Apple’s Advantages in Global Competition Apple’s Advantages in Global Competition Apple’s Advantages in Global Competition Apple’s Advantages in Global Competition Apple’s Advantages in Global Competition Apple...

5: THEORIES OF INTERNATIONAL TRADE AND INVESTMENT LEARNING OBJECTIVES Apple’s Advantages in Global Competition Apple’s Advantages in Global Competition Apple’s Advantages in Global Competition Apple’s Advantages in Global Competition Apple’s Advantages in Global Competition Apple’s Advantages in Global Competition Apple’s Advantages in Global Competition Definition of Terms Classical theories Contemporary theories  Why Do Nations Trade?  Why Do Nations Trade? Classical Theories Classical theories Contemporary theories 1. MERCANTILISM 1. MERCANTILISM 1. MERCANTILISM 2. ABSOLUTE ADVANTAGE PRINCIPLE ▪ ▪ 2. ABSOLUTE ADVANTAGE PRINCIPLE ▪ ▪ ▪ 3. COMPARATIVE ADVANTAGE PRINCIPLE ▪ ▪ ▪ 3. COMPARATIVE ADVANTAGE PRINCIPLE ▪ ▪ 3. COMPARATIVE ADVANTAGE PRINCIPLE ▪ ▪ ▪ ▪ 4. INTERNATIONAL PRODUCT LIFE CYCLE THEORY ▪ 4. INTERNATIONAL PRODUCT LIFE CYCLE THEORY ▪ 4. INTERNATIONAL PRODUCT LIFE CYCLE THEORY ▪ 4. INTERNATIONAL PRODUCT LIFE CYCLE THEORY ▪ 5. NEW TRADE THEORY ▪ 5. NEW TRADE THEORY ▪ ▪ ▪ ▪ Classical theories Contemporary theories How Can Nations Enhance Their Competitive Advantage? 1. THE COMPETITIVE ADVANTAGE OF NATIONS ▪ ▪ ▪ ▪ 1. THE COMPETITIVE ADVANTAGE OF NATIONS ▪ ▪ ▪ 2. DETERMINANTS OF NATIONAL COMPETITIVENESS 2. DETERMINANTS OF NATIONAL COMPETITIVENESS ▪ ▪ ▪ ▪ ▪ 2. DETERMINANTS OF NATIONAL COMPETITIVENESS ▪ ▪ ▪ ▪ ▪ 2. DETERMINANTS OF NATIONAL COMPETITIVENESS ▪ ▪ 3. NATIONAL INDUSTRIAL POLICY ▪ ▪ ▪ ▪ ▪ 3. NATIONAL INDUSTRIAL POLICY ▪ ▪ ▪ ▪ ▪ 3. NATIONAL INDUSTRIAL POLICY ▪ ▪ ▪ Classical theories Contemporary theories Why and How Do Firms Internationalize? THE INTERNATIONALIZATION PROCESS MODEL ✓ ✓ ✓ ✓ THE INTERNATIONALIZATION PROCESS MODEL BORN GLOBAL FIRMS ▪ ▪ ▪ Classical theories Contemporary theories How Can Internationalizing Firms Gain and Sustain Competitive Advantage? A. FDI (FOREIGN DIRECT INVESTMENT) ▪ ▪ ▪ A. FDI (FOREIGN DIRECT INVESTMENT) ▪ ▪ ▪ ▪ ▪ ▪ ▪ B. NON-FDI-BASED EXPLANATIONS FOR INTERNATIONALIZATION ▪ ❖ ❖ ▪ ❖ ❖ ❖ ▪ ❖ ❖ B. NON-FDI-BASED EXPLANATIONS FOR INTERNATIONALIZATION ▪ ❖ ▪ ❖ ❖ ❖ ❖ Classical theories Contemporary theories ANY QUESTIONS? THANK YOU