International Trade Theories and Applications


After going through this chapter, you should be able to:

  • Explain international trade and the classical trade theories

  • Compare and contrast the theory of absolute advantage and comparative advantage

  • Relate the importance of the product life-cycle theory with the study of international economics

  • Review recent trends in world trade

Exporting Ethiopian Roses

Ethiopia adopted a structural adjustment programme in 1991 with a change of government and launched extensive reforms to transform its command economy to a market-oriented economy. In the mid-1990s, the Ethiopian government announced its development vision, known as agricultural development–led industrialization policy ...

Get International Business now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.