INTERNATIONAL
BUSINESS
Materials developed under the European programme:
BIZNES MIĘDZYNARODOWY
SYLLABUS
1. Dlaczego narody handlują ze sobą? Teorie
wymiany międzynarodowej.
2. Co kształtuje wymianę? Czynniki geograficzne.
3. Co kształtuje wymianę? Czynniki polityczne.
Czynniki prawne.
4. Co kształtuje wymianę? Czynniki kulturowe.
5. Co kształtuje wymianę? Czynniki ekonomiczne.
BIZNES MIĘDZYNARODOWY
SYLLABUS
6. Handel zagraniczny. Definicje podstawowe.
7. Pośrednicy w obrocie międzynarodowym.
8. Organizacja obrotu. INCOTERMS 2000.
9. Organizacje międzynarodowe.
10.Co kształtuje wymianę? Czynniki ekonomiczne.
INTERNATIONAL BUSINESS
International Trade Theories
Materials developed under the European programme:
Why do nations trade?
 Mercantilism
 Absolute Advantage
 Comparative Advantage
 Hecksher-Ohlin Theorem
 International Product Life Cycle
Mercantilism
 One of first economic doctrines (1550 to 1800)
 Wealth measured in gold.
 accumulate gold by exporting more than
importing
 Since amount of gold is finite, trade is zero-sum
 Assumes governments can control trade
 France and Japan are modern “neomercantilist”
examples
Absolute Advantage
 Adam Smith in Wealth of Nations
 Produce and export goods at which each nation is
most efficient
 Labor is primary cost factor
Comparative Advantage
 Ricardo in 1817
 Trade success although no absolute
advantage in trade goods
 Produce and export goods at which
each nation is relatively most efficient
 Labor is primary cost factor
Heckscher-Ohlin Theory
 Differences in production factors
Adds land and capital to labor as
production factors that add value
 Concentrate on goods requiring most
abundant factor
 Doesn’t account for
transportation costs
taste preferences
available technology
International Product Life Cycle
 Related to product life cycle theory in marketing
Growth
Maturity
Unit Sales
Intro.
Time
Decline
International Product Life Cycle
Exports
Unit Sales
Imports
Domestic Sales
Domestic Production
Domestic Exports
Foreign
Production
Foreign
Competition
time
Import
Competition
Newer Explanations
 Economies of Scale/Experience Curve
 Lindler Theory of Overlapping Demand
 Porter’s Competitive Advantage of Nations
Lindler Theory of Overlapping Demand
 Focused on manufactured goods
 Trade between nations with similar per capita
income
 Consumers’ demands are similar (overlapping)
Porter’s Competitive Advantage of Nations
 Four variables in competitive advantage
demand conditions
factor conditions
related and supporting industries
firm strategy, structure, competition
Trade Restrictions
National defense
Infant industries
Protection of domestic jobs
Retaliation
Dumping
Export subsidies
Types of Restrictions
 Tariff Barriers
Ad Valorem
Specific
Compound
 Taxes
Value Added Tax
Import/Export Taxes
Excise duty
Non-Tariff Barriers
 Quantitative
 quotas,
 orderly marketing arrangements,
 countertrade
 Non Quantitative
 government subsidies
 standards
Economic Development
 Developed nations
 Newly industrialized economies (NIEs)
 Developing nations
Developed Nations
 Western European nations
 United States
 Japan
 Australia
 New Zealand
 Canada
Newly Industrialized Economies (NIEs)
 Brazil
 Mexico
 Malaysia
 Thailand
 Chile
 South Korea
 Taiwan
 Hong Kong
 Singapore
GNP/Capita as Indicator
 Widely used to compare nations
 Values are estimated
 Some GNP unreported
 Barter trade not reported
 Exchange rates may not reflect actual value
 Assumes equal distribution
 Include other measures
Characteristics of Developing Nations-1
 GNP/Capital less than $2,000
 Unequal distribution
 Technological dualism
 Majority earn income from agriculture
 Unproductive agriculture
 Large unemployment figures
Characteristics of Developing Nations-2
 Health problems and malnutrition
 High illiteracy
 High population growth
 Reliance on few products for export
 Difficult topography
 Low savings rate
 Political instability