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Y1 - International Business Environment

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Summary

Week 2

Rijksuniversiteit Groningen · International Business

Y1 - International Business Environment

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Week 2
CHAPTER 3: WHY EVERYBODY TRADES - COMPARATIVE ADVANTAGE
1. ADAM SMITH’S THEORY OF ABSOLUTE ADVANTAGE
2. DAVID RICARDO’S PRINCIPLE OF COMPARATIVE ADVANTAGE
CHAPTER 4: TRADE - FACTOR AVAILABILITY AND FACTOR PROPORTIONS ARE KEY
PRODUCTION WITH INCREASING MARGINAL COSTS
TWO-COUNTRY TWO-PRODUCT ECONOMY WITHOUT TRADE
COMMUNITY INDIFFERENCE CURVES - CONSUMPTION
PRODUCTION AND CONSUMPTION TOGETHER - equilibrium without trade
TWO-COUNTRY TWO-PRODUCT ECONOMY WITH TRADE
GAINS FROM TRADE
SOURCES OF COMPARATIVE ADVANTAGE
THE HECKSCHER-OHLIN (H-O) THEORY

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