International Trade_2

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International Trade_2 1. Explain the Rybczynski theorem as it relates directly to foreign direct investment (FDI). Your response should be at least 75 words in length. 2. Explain differentiated goods and how you understand it in the context of monopolistic competition. In other words, why do countries trade so many different variations of, by definition, the same product? Your response should be at least 75 words in length. 3. Please explain the gravity equation and what do we really apply it to? Your response should be at least 75 words in length. 4. What does foreign direct investment (FDI) really mean? Your response should be at least 75 words in length. 5. What is the difference between offshoring and foreign outsourcing, if any? Please give examples of each if there is a difference. Your response should be at least 75 words in length. 6. Please explain the term isoquants and apply it to a scenario where this term would be used in outsourcing or offshoring. Your response should be at least 75 words in length. 7. Why might it be relatively easier for a developing country, such as India, to export service activities through offshoring than to participate in the global economy by producing manufacturing components? Your response should be at least 75 words in length. 8. Explain what value chain means and apply the term to an offshoring activity that you would likely implement for your company that you work for or for a company that you might create, including three countries of your choice. Your response should be at least 75 words in length Note: Please use reference Taylor, A. M., & Feenstra, R. C. (2014). International trade (3rd ed.). New York, NY: Worth Publishing.
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lol .. Okay, ONE more minor capitalization issue -- just want this to be perfect for you, bro.~

Running head: CLEARING THE FOG

Clearing the Fog: From London to Lisbon to Los Angeles, in the Obfuscations of World Trade
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CLEARING THE FOG
Clearing the Fog: From London to Lisbon to Los Angeles, in the Obfuscations of World Trade
Rybczynski Theorem [as it Relates to FDI]
While some may use the apocryphal Scales of Justice to eternally achieve equilibrium – or
at least teetering balance – in all matters judicial, likewise, it is tempting in the interest of
instruction simply to cast the mechanical scales aside and point instead to blindfolded Lady
Justice’s economic “cousin,” where “one hand washes the other” in terms of Rybczynski
Theorem interaction/interdiction configured toward vectors of foreign direct investment [FDI].
In other words, cars are capital-intensive; clothing is labor-intensive. Production of (and
investment in) such sectors within swirling free trade among nations is not conducted in a
vacuum, and there is a direct theoretical inverse relationship between the twin exemplars in
Rybczynski-related cogs of intricate exertions: “Changes in an endowment affect the output of
goods when full employment is sustained, delineating the effects of capital investments,
immigration and emigration” within the context of a Heckscher-Ohlin Model (Rybczynski, 1955,
pp. 338-339). According to the cutting-edge Polish economist, “Open trade between two regions
often leads to changes in relative factor supplies between the regions” (1955, pp. 340).
In conclusion, a (strategic) endowment of one output will lead to an increase in one
(related) relative factor and a decrease in the other; in the previous example, an infusion of
capital would increase endowment/output of cars, and conversely decrease same in clothing
manufacturing and distribution, well illustrating the choreographed dance of international trade.

Differentiated Goods [as Relate to Monopolistic Competition]
This is (much) more a case of marketing and branding than (im)pure economics, all
cogently conducted in order to attract attention and, ultimately, induce purchase of a product. To
understand the baseline benchmarks and corollary key concepts, “Product differentiation is the
process of distinguishing a product or service from others, to make it more attractive [emphasis
added] to a particular target market” (Chamberlin, 1933, p. 10).
Often leading to elements of identity-creation, think Avis Rental Cars and 7-Up sodas,
which (quite successfully) carved out a worldwide niche, respectively, as “the ones who try
harder” [even though we’re Number Two in the market]; and, simply and succinctly, “the
Uncola.” Only under the paradoxical penumbra of product differentiation would a rental agency
d...


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I was having a hard time with this subject, and this was a great help.

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