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Alibaba Multi National Corporation Paper

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Running Head: ALIBABA MULTINATIONAL CORPORATION
Alibaba Multi National Corporation
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ALIBABA MULTINATIONAL CORPORATION 2
Alibaba Multi National Corporation
Introduction
Paul Krugman, the laureate of 2008, was the creator of the theory of modern international
trade, explaining, in particular, why industrialized countries dominate in global trade. Strategic
trade policy refers to the government's policy system to improve economic performance by
encouraging the export of certain industrial products or restricting their imports. The
appropriateness and relevance of new trade theory and strategic trade policy in explaining what
is happening to modern companies have not been studied extensively. The paper intends to use
the new trade theory and strategic trade policy as a guide in understanding how Alibaba is
approaching international trade. The article is based on a thesis statement that states that new
trade theory and strategic trade policy are vital approaches that explain why Alibaba is
performing well internationally.
New trade theory
The new trade theory helps in explaining the power of the Chinese government in
strengthening the performance of its companies such as Alibaba. The approach does not support
the power of competitive advantage. Instead, it argues that even the country's small competitive
advantages in certain groups of goods can increase manyfold as a result of the expansion of their
production (Siddiqui et al., 2012). The theory maintains that production efficiency directly
depends on its volume. As a result, goods produced at large enterprises in industrialized
countries, despite the much higher cost of labour, are cheaper than analogues from less
developed countries. Increase in economies of scale is possible through government support

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Running Head: ALIBABA MULTINATIONAL CORPORATION Alibaba Multi National Corporation Name Institution Date ALIBABA MULTINATIONAL CORPORATION 2 Alibaba Multi National Corporation Introduction Paul Krugman, the laureate of 2008, was the creator of the theory of modern international trade, explaining, in particular, why industrialized countries dominate in global trade. Strategic trade policy refers to the government's policy system to improve economic performance by encouraging the export of certain industrial products or restricting their imports. The appropriateness and relevance of new trade theory and strategic trade policy in explaining what is happening to modern companies have not been studied extensively. The paper intends to use the new trade theory and strategic trade policy as a guide in understanding how Alibaba is approaching international trade. The article is based on a thesis statement that states that new trade theory and strategic trade policy are vital approaches that explain why Alibaba is performing well internationally. New trade theory The new trade theory helps in explaining the power of the Chinese government in strengthening the performance of its companies such as Alibaba. The approach does not support the power of competitive advantage. Instead, it argues that even the country's small competitive advantages in certain groups of goods can increase manyfold as a result of the expansion of their production (Siddiqui et al., 2012). The theory maintain ...
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