International Trade Structure - Introduction
This chapter begins with an overview of the arguments for and against trade. There follows an examination of the theories of trade (classical trade theories and firm based theories). This touches on a number of theories including Mercantilism, absolute advantage, comparative advantage, Heckscher-Ohlin theory of international trade.
Section 4 will look at the theories of foreign direct investment (FDI) in order to understand the determinants of FDI. The penultimate section looks at international trade restrictions and also touching on preferential trading. Finally, we examine the EU.
To be able to:
- Understand the different theories of trade and the causes of trade between countries
- Examine FDI determinants
- Explore the arguments for and against trade
- Understand what a customs union is, preferential trading and the workings of the EU.