Trade theories

Question 1

Country based theories

Answer 1

Inter industry (between)
Trade in commodities (everything same shit)
Price

Question 2

Firm based theories

Answer 2

Intra industry
Différente goods

Question 3

Mercantilism

Answer 3

Gold and silver are the shit
More exports less imports (get money)

Question 4

Absolute advantage

Answer 4

Free trade among countries so that u can specialize in shit ur the best at and trade for shit ur bad at

Question 5

Comparative advantage

Answer 5

Takes into account opportunity cost.
If you sacrifice more of another thing you shouldn’t produce it

Question 6

Relative factor endowments (hecksher-ohlin)

Answer 6

You should chose what u make based on the Ressources you have in abundance

Question 7

Leontief paradox

Answer 7

Hershey ohlien didn’t work in US post WW2

Question 8

Linder country similarity theory

Answer 8

Counties with same income should trade (particularly with differentiated goods) because they people have same taste

Question 9

New trade theory

Answer 9

Firms will constantly chase economies of scale by getting some competitive advantage