Term
| Reasons for Host Country Interventions |
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Definition
• Controlling the balance of payments
• Obtaining resources and benefits |
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Term
| Reasons for Home Country Interventions |
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Definition
• Tax incentives
• Insurance
• Investments |
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Term
| Modes of International Business |
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Definition
- International Trade
• Merchandise or service
- Investments
• Direct or Indirect (portfolio investments) |
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Term
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Definition
Holding that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports. |
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Term
| Factor Proportions (Heckkscher - Ohlin Theory) |
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Definition
Holding that countries produce and export goods that require resources (factors) that are abundant and import goods that require resources in short supply |
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Term
| International Product Life Cycle |
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Definition
- New Product Stage
- Maturing Product Stage
- Standardized Product Stage
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Term
New Trade Theory
First-Mover Advantage |
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Definition
Specialization and Economies of Scale
Barriers to Entry
Government Intervention |
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Term
| National Competitive Advantage |
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Definition
Strategy, Structure and Rivalry
↑
Factor Conditions ← The Porter Diamond → Demand Conditions
↓
Related and supporting Industries |
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Term
Classical Country-Based Theories |
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Definition
Mercantilism
Absolute Advantage
Comparative Advantage
Heckscher-Ohlin |
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Term
| Modern Firm-Based Theories |
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Definition
Country Similarity
Product Life Cycle
Global Strategic Rivalry
Porter's National Competitive Advantage |
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Term
Trade Dependence and Independence |
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Definition
Developing and Transitioning Nations
Dangers of Trade Dependency
- Benjamin Franklin "No nation was ever ruined by trade". |
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