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Chapter 5 : International Trade : 5.1 Theories of International Trade 5.2 International Trading Environment 5.3 Cross-National Cooperation and Agreements
Theories of International Trade : Countries wrestle with the question of what, how much and with whom their country should import and export Various theories of international trade provide insights about favorable location for exports as well as potentially successful export products
In absence of government trade restrictions, given products are exported from lower cost to higher cost production locations. Therefore these theories also help companies determine where to locate their production facilities Trade restrictions may diminish export capabilities and cause companies to locate some production in the restricting countries
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