Module 3 - International Trade
Module 3 - International Trade
International Trade
1- Export Performance.
2- International Demand.
3- Alternative Markets.
4- The Role of Competitors.
Trade and World Output
• World trade
• 80% merchandise
• 20% services
1- Mercantilism
- Nations should accumulate financial wealth, usually in the form of gold,
by encouraging exports and discouraging imports. Other measures of a
nation’s well-being, such as living standards or human development, are
irrelevant. Practiced from around 1500 to the late 1700s by European
nations, including Britain, France, the Netherlands, Portugal, and Spain.
Riceland Tealand
Fundamentals
1- Factor conditions
2- Demand conditions
Sophisticated home-market
buyers drive companies to
improve existing products and
develop entirely new products
and technologies