SectionTwo:KeytermsofInternationalTradeTheoryMercantilismLaissez-faireHeckshcer-OlintheoryZero-sumgamePositive/parativeadvantageProductionPossibiltyFrontier(PPF)FactorendowmentTheLeontiefParadoxtheProductlife-cycleEconomiesofscaleFirst-moveradvantagesOutsourceExpertiseoffshorediffuseOralPractice::???ExplainstheshiftsofPPF?AnOverviewofInternationalTradeDefinition:Internationaltradeisexchangeofcapital,goods,,advancedtransportation,globalization,multinationalcorporations,-thefirsttheoryofinternationaltradePlaceofemerging:EnglandTimeofPrevalence:fromthemid-16thtothe18thMainDoctrine:"unchangeable".Economicassetsorcapital,arerepresentedbybullion(gold,silver,andtradevalue)heldbythestateEconomicassetsisbestincreasedthroughapositivebalanceoftradewithothernations(exportsminusimports).Policy:governmentshouldadvancethesegoalsbyplayingaprotectionistroleintheeconomy;byencouragingexportsanddiscouragingimports,:AdamSmithandDavidHumeareconsideredtobethefoundingfathersofanti--,freetradeisapositivegame(bothsidescanbenefit).Byimposingmercantilistimportrestrictionsandtariffsinstead,,,inthestateexportingbullion,,,longarguingthatanincreaseinthemoneysupplysimplymeantth
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