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Sagot :
Answer:
International Trade Theories
1. Absolute advantage theory
2. Comparative advantage theory
3. National competitive advantage theory
4. Product life-cycle theory
5. Heckscher-Ohlin theory
6. New trade theory
Explanation:
a. Absolute advantage theory (Adam Smith) advocates specialization in the production of goods and services of countries where efficiency is highest.
b. New trade theory (no national differences in resource endowments or technology)
c. Heckscher-Ohlin theory where the resource endowments differentiate countries.
d. National competitive advantage theory (international success in a particular industry)
e. Comparative advantage theory (David Ricardo) advocates either make or buy goods based on efficient production and distribution.
f. Product life-cycle theory (Raymond Vernon) emphasizes the location for the introduction of a new product.
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