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1. What is the primary argument of the Hecksher-Olin Trade theory? How does it explain the push for increased free trade from both developed and developing countries in recent years?
2. Why do governments seek to international restrict trade? Critique some of the explanations for how and why trade policy coalitions emerge in domestic politics.
3. What are the benefits and consequences of foreign direct investment (FDI) for less developed countries? How does the impact of FDI compare to that of development loans from institutions like the International Monetary Fund (IMF)?
For each question, write more than 300 words. And the answers should use the following materials to answer the questions. Outsider materials are not allowed.
Materials:
Frieden, Jeffry, David Lake, and Kenneth Schultz. 2015. World Politics: Interests, Interactions, Institutions (3rd ed.). New York: W.W. Norton.
(Chapter 7 and 8)
Mingst, Karen A. and Jack L. Snyder. 2016. Essential Readings in World Politics (6th ed.). New York: W.W. Norton.(Mingst and Snyder. Section 9 (pp. 467-495, 511-525)
Shiraev, Eric. B. and Vladislav M. Zubok. 2016. Current Debates in International Relations. Oxford: Oxford University Press.(Shiraev and Zubok. Sections7.1, 7.2, 7.3)
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Explanation & Answer
Attached.
Running head: INTERNATIONAL TRADE.
International Trade
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INTERNATIONAL TRADE.
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In modern times, it has been much of a necessity to make trade international and
even global. The Heckscher – Ohlin Trade Theory is one of four very important theories
developed by Eli Heckscher and his student Bertil Ohlin. The theory suggests that in
trade, a region exports goods or services that it has in plenty while attaining those that
are scarce. The primary concept of the theory is that the two countries producing either
capital or labor are always matching by meeting each other’s needs. If one has an
abundance of capital, then it can work with the other for that while the one with much
labor can trade with the other with abundant capital. If no trade is present between the
regions, the prices of the abundant services have to be reduced to match other regions
but through trade, they alternate their assets with other regions.
This theory has particularly led a scene of world trade improvement in the past
years. The theory explains how the developed regions have huge capital and skillful
workforce that they use to export their manufactured products to developing states by
maximizing the use of thei...
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