ThiN ga nH an g co m ThiNganHang com I Overview of International trade 1 International trade Purchase, sale, or exchange of goods and services across national borders 2 Foreign Direct Investment (FDI)[.]
an g co m nH ga iN Th ThiNganHang.com International trade: Purchase, sale, or exchange of goods and services across national borders Foreign Direct Investment (FDI): Purchase of physical assets or a significant amount of the ownership of a company in another country to gain a measure of management control Portfolio Investment: Investment that does not involve obtaining a degree of control in a company Th iN ga nH an g co m I Overview of International trade ThiNganHang.com an g co m II Benefits of International trade Open doors to new entrepreneurial opportunity across nations Provide a country’s people with greater choice of goods and services An important engine for job creation in many countries Th iN ga nH ThiNganHang.com an g co m III Theories of International trade Th iN ga nH 1.Mercantilism: Trade theory holding that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports Absolute advantage: Ability of a nation to produce a good more efficiently than any other nation ThiNganHang.com an g co m Th iN ga nH Comparative advantage: Inability of a nation to produce a goods more efficiently than other nations, but an ability to produce that good more efficiently than it does any other good Factor proportions theory: Trade theory holding that countries produce and export goods that require resources (factors) that are abundant and import goods that require resources in short supply ThiNganHang.com ... of control in a company Th iN ga nH an g co m I Overview of International trade ThiNganHang.com an g co m II Benefits of International trade Open doors to new entrepreneurial opportunity across... many countries Th iN ga nH ThiNganHang.com an g co m III Theories of International trade Th iN ga nH 1.Mercantilism: Trade theory holding that nations should accumulate financial wealth, usually...1 International trade: Purchase, sale, or exchange of goods and services across national borders Foreign