international marketingPresented by Lindsey Fair

4 drivers of globalization

environmental

market

cost

competitive

theories of international

trade

mercantilism

absolute advantage

A nation has a monopoly on a product or can produce it at the lowest cost. And has the ability to produce something with fewer resources than other producers would use to produce the same thing.

comparative advantage

A country, individual, company or region can produce a good at a lower opportunity cost than that of a competitor.

heckscher-ohlin model

A capital-abundant country will export the capital-intensive good, while the labor-abundant country will export the labor-intensive good.

product cycle theory

production gradually moves away from the point of origin

linder theory

The more similar the demand structures of countries, the more they will trade with one another. (a.k.a. Country Similarity Theory)

krugman’s model

national specialization-by-industry

diamond of national advantage

create new advanced factors vs. relying on natural competitive advantage.