Theories of International Business

Jul 8th, 2015
Studypool Tutor
Kennesaw State University
Course: general
Price: $20 USD

Tutor description

Once countries make decisions, officials enact policies to achieve the desired results. These policies have an impact on business because they affect which countries can produce given products efficiently and whether countries will permit imports to compete against their own domestically produced goods and services. Moreover, some philosophers throughout their theories prescribe that government should influencetrade patterns-promoting export and limiting import, while others such as Smith, Ricardo, and Heckscher‐Ohlin promote unrestricted free trade–laissez-faire treatment of trade.

Word Count: 1520
Showing Page: 1/6
International business theories help managers and government policymakers focus on following questions such asWhat products should we import and export?How much should we trade?With whom we trade?Once countries make decisions, officials enact policies to achieve the desired results. These policies have an impact on business because they affect which countries can produce given products efficiently and whether countries will permit imports to compete against their own domestically produced goods and services.Moreover, some philosophers throughout their theories prescribe that government should influence trade patterns-promoting export and limiting import, while others such as Smith,Ricardo,andHeckscher-Ohlinpromoteunrestrictedfreetrade-laissez-faire treatment of trade. Again, some new trade theories & Porter'stheoryofnationalcompetitiveadvantage justifylimitedandselectivegovernmentinterventiontosupportthedevelopmentofcertainexport - orientedindustries. The following theories are highly acclaimed internationally to run international business.1. Mercantilism Theory2. Theory of Absolute Advantage 3. Theory of Comparative Advantage 4. Hecksher-Ohlin Theory5. Porter's Diamond TheoryAll these theories have greatest impact on international business. These theories are discussed bellow critically.Mercantilism TheoryOrigin: Mercantilism, the first theory of international trade, emerged in England in the mid-16th century.Main Idea: The main te

Review from student

Studypool Student
" excellent work as always thanks for the help "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1825 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors