Materials developed under the European programme: INTERNATIONAL BUSINESS

Materials developed under the European programme:

INTERNATIONALBUSINESS

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.

Materials developed under the European programme:

INTERNATIONAL BUSINESS

International Trade Theories

MercantilismAbsolute AdvantageComparative AdvantageHecksher-Ohlin TheoremInternational Product Life Cycle

Why do nations trade?

MercantilismOne 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 tradeFrance and Japan are modern “neomercantilist”

examples

Absolute AdvantageAdam Smith in Wealth of NationsProduce and export goods at which each nation is

most efficientLabor is primary cost factor

Comparative Advantage

Ricardo in 1817Trade success although no absolute

advantage in trade goodsProduce and export goods at which

each nation is relatively most efficientLabor is primary cost factor

Heckscher-Ohlin TheoryDifferences in production factorsAdds land and capital to labor as

production factors that add valueConcentrate on goods requiring most

abundant factorDoesn’t account for

transportation coststaste preferencesavailable technology

Related to product life cycle theory in marketing

Intro. Growth Maturity Decline

Uni

t Sal

es

Time

International Product Life Cycle

Uni

t Sal

es

time

Domestic Sales

Domestic Production

ExportsImports

Domestic Exports

Foreign Production

Foreign Competition

Import Competition

International Product Life Cycle

Newer Explanations

Economies of Scale/Experience CurveLindler Theory of Overlapping DemandPorter’s Competitive Advantage of Nations

Lindler Theory of Overlapping Demand

Focused on manufactured goodsTrade between nations with similar per capita

incomeConsumers’ demands are similar (overlapping)

Porter’s Competitive Advantage of Nations

Four variables in competitive advantagedemand conditionsfactor conditionsrelated and supporting industriesfirm strategy, structure, competition

Trade Restrictions

National defenseInfant industriesProtection of domestic jobsRetaliationDumpingExport subsidies

Types of Restrictions

Tariff BarriersAd ValoremSpecificCompound

TaxesValue Added TaxImport/Export

TaxesExcise duty

Quantitativequotas, orderly marketing arrangements, countertrade

Non Quantitativegovernment subsidiesstandards

Non-Tariff Barriers

Economic DevelopmentDeveloped nationsNewly industrialized economies (NIEs)Developing nations

Developed Nations

Western European nationsUnited StatesJapanAustraliaNew ZealandCanada

Newly Industrialized Economies (NIEs)

BrazilMexicoMalaysiaThailandChile

South KoreaTaiwanHong KongSingapore

GNP/Capita as Indicator

Widely used to compare nationsValues are estimatedSome GNP unreportedBarter trade not reportedExchange rates may not reflect actual valueAssumes equal distributionInclude other measures

Characteristics of Developing Nations-1

GNP/Capital less than $2,000Unequal distributionTechnological dualismMajority earn income from agricultureUnproductive agricultureLarge unemployment figures

Health problems and malnutritionHigh illiteracyHigh population growthReliance on few products for exportDifficult topographyLow savings ratePolitical instability

Characteristics of Developing Nations-2