Minor Las Period 1 Overview

In: Business and Management

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Fundamentals of Logistics Management
International Business period 1

LAS: International Business

period 1 overview

1

Fundamentals Schedule of Logistics Management Week Content number 1 World of International Business, International Business environment , theories on and types of international Trade, Project Traid and International business, cultural analyses Cultural analysis, Porter Porter, Risk analyses Risk analysis, CSA / FSA analysis CSA / FSA analysis Overflow 2 3 4 5 6 7

DO NOT FORGET

Rugman
H1, H2

H3, H5, H6 H5, H13,

DO NOT FORGET

LAS: International Business

period 1 overview

2

THEORIES ON INTERNATIONAL TRADE
• Absolute and competitive advantage • Heckscher and olin’s theorem • The leontief-paradox • The flying geese model

LAS: International Business

period 1 overview

3

THEORY OF ABSOLUTE ADVANTAGE (Adam Smith)

Each nation should specialize in producing goods it has a natural or aquired advantage in and therefore can produce more efficiently

LAS: International Business

period 1 overview

4

THEORY OF COMPETITIVE ADVANTAGE (David Ricardo)
It is advantageous for two countries to trade if the cost ratio between the two countries differ
(If producing x, expressed in y, is cheaper in country 1 than in country 2, while producing y in country 2 is cheaper than in country 1 , country 1 exports x and country 2 exports y)

LAS: International Business

period 1 overview

5

HECKSCHER – OHLIN
• Two production factors : Labor and Capital • Availability of C and L in countries differ • The ratio C : L differs between countries • If a country has an abundance of (say) Labor labor intensive production will be cheap (relative) and vice versa. • International trade will develop between countries of which one is labor intensive and the other capital intensive

LAS: International Business…...

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