StudentShare solutions
Triangle menu

International Trade - Essay Example

Nobody downloaded yet
For example, the British climate is too cold to grow coffee trees, and Jamaica has no petroleum. But large resources of petroleum exist in the North Sea and coffee trees can easily be grown in Jamaica. Britons and Jamaicans could clearly benefit by exchanging oil for coffee.
Smith's theory of absolute advantage - or absolute productivity differences - remains useful in explaining present-day trade between similar countries such as France and Germany. The average cost of employing a worker in Germany is about the same as it is in France, and capital moves freely between the two countries; and so returns are roughly equals. Therefore, to compete successfully with a cost advantage in the French market, any particular German export must use absolutely less labour and capital when produced in Germany than if the identical item were produced in France.
Trade between similar countries can occur so long as the tastes and incomes of individuals within each country differ and so long as there are absolute cost differences in producing various goods. Thus, people in France and Germany who have modest incomes and require basic transportation, and whose hearts are not set on a high-powered sports car, might purchase Citroens made in France. Wealthy individuals in both countries with an appreciation of high-performance automobiles might purchase Porsches made in Germany. The taste and income differences among individuals within each country interact with specific absolute cost advantages across countries and provide a mutually advantageous basis for international trade. Clearly, if all Frenchmen wanted only to drive Citroens, and if all Germans desired Porsches and had the means to buy them, the scope for trade would be restricted.
Cross-country differences in endowments of minerals, or in climate-affecting agriculture, often provide an obvious basis for international trade. But it is not obvious why similarly situated nations such as France and Germany have differing absolute advantages in various manufactured products. The fact that one special combination of entrepreneurial and engineering skills encouraged the production of Porsches in Germany, and a second such combination led to the production of Citrons in France, is more or less historical accident. Similarly, in Switzerland the craftsmanship required to manufacture watches and clocks could not be predicted from a general knowledge of Switzerland's capital stock and labour force.

The Theory of Comparative Advantage:
Like the theory of absolute advantage, the theory of comparative advantage assumes that resources ...Show more


There are several perspectives presented by various thinkers of different disciplines regarding competitiveness. The notion of competitiveness can be associated with three major groups of thought. These are:
Although globalisation has transformed the world into a single market but still a disparity in the economic condition of different countries is evident…
Author : polly96
International Trade Essay
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"International Trade Essay"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

International trade
It consists of 2 components – exports and imports. International trade has been in existence since the ancient times when countries across Asia and Europe used to exchange goods on the silk route. The importance of international trade has been growing recently with many countries increasing their national income through international trade route.
4 pages (1000 words) Essay
International trade
te of high growth rates in United States of America. On the other hand, pessimist maintained a different approach and considered globalization as a ‘global trap’ that has been increasingly affected the world in adverse manner, increasing the level of inequality and discouraging associated countries to deal efficiently with the pressing societal issues (Martin and Schumann, 1997).
10 pages (2500 words) Essay
International Business and Trade Essay
It gathers records and analyzes data that furnish information and then intelligence. The techniques used in marketing research range from statistical, mathematical, and computer approaches to the projective techniques of psychology; from surveys and experiments to personal observation and assessment of marketing activities.
4 pages (1000 words) Essay
Law of International Trade Essay
The issues taken into consideration are - In short this case could be described as having the features of existence of contract, liabilities of holder, bill of lading and damage to vessel due to shipment of dangerous cargo. Decision was given by Justice Aikens.
15 pages (3750 words) Essay
International Trade Ph.D. Essay
Along with specificity, the transaction is time ordered. Each actor involved in the transaction must handle all matters within the time period stipulated within the content of the term or type of payment.
5 pages (1250 words) Essay
International Trade Bachelor Essay
One of the important issues is the controlling of rapid growth in trade deficit. Trade involves exchange of goods or services for cash or on credit. There are several other activities, which facilitate trade, and these alongwith trades are known as commercial activities.
7 pages (1750 words) Essay
International Trade Master Essay It's major export products are coffee , leather and leather products oil seeds and pulses, fruits, vegetables and flowers, textiles, natural gum, spices and mineral products.(Internet-Ethiopian Trade Point)) It qualifies as a least Developed country (LDC).
9 pages (2250 words) Essay
International Trade and Competition Essay
One of the important issues is the controlling of rapid growth in trade deficit. Trade involves exchange of goods or services for cash or on credit. There are several other activities, which facilitate trade, and these alongwith trades are known as commercial activities.
8 pages (2000 words) Essay
International Trade and Globalisation
A detailed discussion of the trade policy analysis has been shown in this paper mainly on the impact of imposing and removal of trade tariffs on the welfare of producer, consumer, and the government, who benefits and who
14 pages (3500 words) Essay
Issues in International trade
Almost every type of product is found in the international market. These products include food, clothes, spare parts, machinery, oil, jewelry and currencies among other things.
5 pages (1250 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic International Trade Essay for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
Join us:
Contact Us