International-Business-Environments-and-Operations

1、Copyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-1PartThreeTheoriesandInstitutions:TradeandInvestmentInternationalBusinessEnvironmentsandOperationsCopyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-2ChapterSixInternationalTradeandFactorMobilityTheoryCopyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-3ChapterObjectives•Tounderstandtheoriesofinternationaltrade•Toexplainhowfreetradeimprovesglobalefficiency•Toidentifyfactorsaffectingnationaltradepatterns•Toexplainwhy。

2、acountry’sexportcapabilitiesaredynamic•Tounderstandwhyproductionfactors,especiallylaborandcapital,moveinternationally•ToexplaintherelationshipbetweenforeigntradeandinternationalfactormobilityCopyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-4TradeTheoryHelpsmanagersandgovernmentpolicymakersfocusonthesequestions:•Whatproductsshouldweimportandexport?•Howmuchshouldwetrade?•Withwhomshouldwetrade?Copyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-5InternationalOperationsandEconom。

3、icConnectionsCopyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-6WhatthemajortradetheoriesDoandDon’tdiscussCopyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-7InterventionistTheoriesMercantilisttheoryproposedthatacountryshouldtrytoachieveafavorablebalanceoftrade(exportmorethanitimports)Neomercantilistpolicyalsoseeksafavorablebalanceoftrade,butitspurposeistoachievesomesocialorpoliticalobjectiveCopyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-8FreeTradeTheories•Ab。

4、soluteAdvantageSuggestsspecializationthroughfreetradebecauseconsumerswillbebetteroffbuyingforeign-madeproductspricedmorecheaplythandomesticones•ComparativeAdvantageAlsoproposesspecializationthroughfreetradebasedonthebeliefthattotalglobaloutputcanincreaseevenifonecountryhasanabsoluteadvantageintheproductionofallproductsCopyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-9TheoriesofSpecialization•Bothabsoluteandcomparativeadvantagetheoriesarebasedonspecialization•Assumptionspolicymakers。

5、question:fullemploymenteconomicefficiencydivisionofgainstwocountries,twocommoditiestransportcostsstaticsanddynamicsservicesproductionnetworksmobilityCopyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-10TradePatternTheoriesTheoryofCountrySizeFactor-ProportionsTheoryCountrySimilarityTheoryProductLifeCycleTheoryDiamondofNationalAdvantageCopyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-11TheoryOfCountrySize•Countrieswithlargelandareasareapttohavevariedclimatesandn。

6、aturalresources•Theyaregenerallymoreself-sufficientthansmallercountries•Largecountries’productionandmarketcentersaremorelikelytobelocatedatagreaterdistancefromothercountries,raisingthetransportcostsofforeigntradeCopyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-12Factor-ProportionsTheory•Acountry’srelativeendowmentsofland,labor,andcapitalwilldeterminetherelativecostsofthesefactors•FactorcostswilldeterminewhichgoodsthecountrycanproducemostefficientlyCopyright©2011PearsonEducation,Inc.p。

7、ublishingasPrenticeHall6-13WorldwideTradeofMajorManufacturedGoodsCopyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-14Country-SimilarityTheory•Mosttradetodayoccursamonghigh-incomecountriesbecausetheysharesimilarmarketsegmentsandbecausetheyproduceandconsumesomuchmorethanemergingeconomies•Muchofthepatternoftwo-waytradingpartnersmaybeexplainedbyculturalsimilaritybetweenthecountries,politicalandeconomicagreements,andbythedistancebetweenthemCopyright©2011PearsonEducation,Inc.publishingasPre。

8、nticeHall6-15ProductLifeCycle(PLC)Theory•Companieswillmanufactureproductsfirstinthecountriesinwhichtheywereresearchedanddeveloped,almostalwaysdevelopedcountries•Overtheproduct’slifecycle,productionwillshifttoforeignlocations,especiallytodevelopingeconomiesastheproductreachesthestagesofmaturityanddeclineCopyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-16LifeCycleoftheInternationalProductCopyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-17TheDiamondofNationalAdvantage•Fourco。

9、nditionsareimportantforcompetitivesuperiority:demandconditionsfactorconditionsrelatedandsupportingindustriesfirmstrategy,structure,andrivalryCopyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-18LimitationsoftheDiamondofNationalAdvantage•Domesticexistenceofallconditions:DoesnotguaranteeanindustrywilldevelopIsnotnecessarywithglobalizationCopyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-19FactorMobilityTheoryCapitalandlabormoveinternationallyto:•Gainmoreincome•Fleeadvers。

10、epoliticalsituationsCopyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-20EffectsofFactorMovements•Factormovementsalterfactorendowments.•Factormovementsaresubstantialformanycountriesandinsignificantforothers.•Althoughlaborandcapitalaredifferentproductionfactors,theyareintertwined.•ProsandconsofoutwardandinwardmigrationCopyright©2011PearsonEducation,Inc.publishingasPrenticeHall6-21TheRelationshipbetweenTradeandFactorMobility•Capitalandlabormoveinternationallytogainmoreincomeandfleeadverse。