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The Cashew

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INTERNATIONAL TRADE THEORIES

One of the avenues to address this is to seek help from the Embassy of the other country. For example, if the Canadian Embassy in South Korea will not help a Canadian find information on importing some product from South Korea, you can simply go to the office of the South Korean (ROK) Consulate in Toronto or the Korean Embassy in Ottawa and their staff will be pleased to provide assistance.

Adam Smith said - each nation should specialize in producing things it has an "absolute advantage" . The theory of "Absolute Advantage" seems to make sense in situations where the circumstances of the geographic and economic environment are relatively simple and straight forward - example: - Switzerland and watches, Canada and cereal grain.

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In most cases, a straight-forward Absolute Advantage does not exist in the real world. Some countries may have an advantage in one commodity, and also a slight advantage in another commodity - however there is still an opportunity for them to trade.

In 1817, David Ricardo looked at Adam Smith's theory and suggested that "there may still be global efficiency gains from trade if a country specializes in those products that it can produce more efficiently than other products - regardless of whether other countries can produce those same products even more efficiently"

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The Theory of Factor Endowments suggested you should trade in the products which you can make from the production factors and resources you naturally possess. So for Canada this means we should trade in lumber and minerals and grain since we naturally possess these resources in large quantities. Following this theory it would then make sense for Canada to import citrus fruits since our climate does not naturally give us weather to allow this food to grow without expensive greenhouses. This theory was espoused by Heckscher and Ohlin.

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The Product Life Cycle

The PLC, is taught to eveyone in first year business and marketing courses.

How is the PLC effected by International Business?

The introduction stage can be shortened due to other competitors from around the globe copying your product, the decline stage can be extended, by exporting beyond your existing markets.

El modelo Heckscher-Ohlin

SÐ"­ el trabajo fuese el Ð"Ñ"nico factor de producciÐ"Ñ-n, como suponÐ"­a el modelo ricardiano, la ventaja comparativa podrÐ"­a surgir Ð"Ñ"nicamente de las diferencias internacionales en la productividad del trabajo.

El modelo Heckscher-Ohlin predice que si un paÐ"­s tiene una abundancia relativa de un factor (trabajo o capital), tendrÐ"ÐŽ una ventaja comparativa y competitiva en aquellos bienes que requieran una mayor cantidad de ese factor, o sea que los paÐ"­ses tienden a exportar los bienes que son intensivos en los factores con que estÐ"ÐŽn abundantemente dotados (Krugman 2001). Al mencionado modelo tambiÐ"©n se le conoce como la teorÐ"­a de las proporciones factoriales.

La teorÐ"­a Heckscher-Ohlin se basa en los siguientes supuestos (Salvatore 1999):

 Hay dos naciones (la naciÐ"Ñ-n 1 y la naciÐ"Ñ-n 2), dos mercancÐ"­as (la “X” y la “Y”) y dos factores de producciÐ"Ñ-n (trabajo y capital).

 Ambas naciones se sirven de la misma tecnologÐ"­a en la producciÐ"Ñ-n.

 La mercancÐ"­a “X” es intensiva en trabajo y la mercancÐ"­a “Y” es intensiva en capital, en ambas naciones.

 Ambas mercancÐ"­as se producen con rendimientos constantes a escala en ambas naciones.

 Hay especializaciÐ"Ñ-n incompleta de la producciÐ"Ñ-n en ambas naciones.

 Las preferencias son iguales en ambas naciones.

 Hay competencia perfecta en los mercados de mercancÐ"­as y de factores en las dos naciones.

 Hay movilidad perfecta de factores dentro de cada naciÐ"Ñ-n, mÐ"ÐŽs no hay movilidad internacional de factores.

 No hay costos de transporte, aranceles ni otras obstrucciones al libre flujo del comercio internacional.

 Todos los recursos se emplean por completo en ambas naciones.

 El comercio internacional entre las dos naciones estÐ"ÐŽ equilibrado.

FACTORES ECONOMICOS Y POLITICOS

INDIA

Foreign relations and military

Main articles: Foreign relations of India and Indian Armed Forces

The Sukhoi-30 MKI is part of the Indian Air Force.

Since its independence in 1947, India has maintained cordial relationships with most nations. It took a leading role in the 1950s by advocating the independence of European colonies in Africa and Asia.[53] India is a founding member of the Non-Aligned Movement.[54] After the Sino-Indian War and the Indo-Pakistani War of 1965, India's relationship with the Soviet Union warmed at the expense of ties with the United States and continued to remain so until the end of the Cold War. India has fought four wars with Pakistan, primarily over Kashmir. India also fought and won an additional war with Pakistan for the liberation of Bangladesh in 1971.

In recent years, India has played an influential role in the ASEAN, SAARC, and the WTO.[citation needed] India is a founding member and long time supporter of the United Nations, with over 55,000 Indian military and police personnel having served in thirty-five UN peace keeping operations deployed across four continents.[55] Despite criticism and military sanctions, India has consistently refused to sign the CTBT and the NPT, preferring

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