In terms of trade policy, two arguments - the profit-shifting theory and external economies - are presented Traditional trade theory is based on the framework of perfectly competitive market structure, where perfectly competitive market is the most efficient market and any intervention will only bring about efficiency loss. There...
Commonly used foreign trade terms are as follows： CIP (carriage and insurance paid to) Freight/insurance paid to destination： The seller delivers the goods to the carrier appointed by the seller, during which the seller must pay the freight charges for transporting the goods to the destination and handle the ...
What are the basic principles of economies of scale and imperfect competitive advantage? The theory of international investment includes the following eight theories: monopolistic advantage theory; internalization theory; product life cycle theory; international production trade-off theory; comparative advantage theory; internationa...
Commonly used foreign trade terms are as follows： CPT (carriage paid to) Carriage paid to destination： It means that the seller shall deliver the goods to the carrier appointed by him, pay the freight for transporting the goods to the destination, and carry out the export customs clearance procedures. CPT (carri...
On the meaning of international technology spillover The concept of international technology spillovers was first introduced in the 1960s by Macgougall when he explored the social benefits of receiving FDI in host countries. However, he did not study it in more detail. In the 1970s and 1980s, the study of t...
Commonly used foreign trade terms are as follows： FCA (free carrier) Goods delivered to the carrier： Refers to the seller as long as the goods in the designated place to the buyer's designated carrier, and export customs clearance procedures, that is, the completion of delivery.
International Technology Spillovers and Technological Progress Perhaps the most important benefit that a country can derive from its participation in the international economy is that economic integration gives a country access to the knowledge base that already exists throughout the world. Countries that do business in the world ...
Commonly used foreign trade terms are as follows. EXW (ex works) Factory delivery： XW is one of the Incoterms, which means that the delivery is completed when the seller places the goods at the disposal of the buyer at his premises or at another designated place (such as workshop, factory or warehouse), without the seller clearing th...
International trade triggered by internal economies of scale 1. Monopolistically Competitive Firms and International Trade For monopolistically competitive firms, participation in international trade results in an increase in output in both the short and long term. On the other hand, in the long run, the result of a f...
What are the three basic theoretical issues of international trade? 1. Adam Smith's theory of absolute interests and David Ricardo's theory of comparative interests. 2. Heckscher-Ohlin's "factor ratio" and Leontief's counter-argument. 3. Protection trade theory. International trade theory tries to explain why the...
