Trade secrets

Globalization is the process where different countries interconnect, and trade goods for the purpose of making business out of what each other can produce, often these trades impact each country differently. Kenneth Pomeranz, and Steven Topik, discuss in their book “The World That Trade Created” how globalization has impacted the world since early history. Trade creates a wider gap between rich and the poor, this being a negative impact for the poor, where they continue to get even poorer. Where…

This gives Blades a competitive advantage in the future by having some form of brand awareness in Thailand before they establish a subsidiary in Thailand. 2. What are some of disadvantages Blades could face as a result of foreign trade in the short run? In the long run? In the short run, Blades may face exchange rate risk. They are exposed to fluctuations of the Thai Baht. For example, when Thai Baht appreciate, the cost of imported raw material become more expensive as Blades would…

Introduction: While Ancient Egypt along with Han China developed independently, both shared structural similarities and differences in which their economy developed. While Ancient Egypt paid taxes in the amount of crops, Han China paid taxes directly through cash. As for their manufacturing and trading abilities, both created beautiful products and goods, allowing various goods to be traded among the two civilizations. 1) Sources of wealth: • The ruling class in Ancient Egypt (kings, nobles…

in the economy and foreign trade that when executed properly, greatly enhanced a ruler’s ability to wage war. Mercantilist policies maintain that a ruler’s goal is to increase the state wealth; state wealth which is equivalent to the stock of precious metal and is a direct measure of state power. However, many states did not have their own bullion mines and thus had to engage in favourable foreign trade to increase state-power. Lastly, Heckscher asserts that foreign trade is a zero-sum game and…

George G. Chisholm wrote the first English-language economic geography textbook, Handbook of commercial geography (1889). Chisholm's Handbook has information about world commodity production and the geographical conditions for trade. Moreover, in 1908 Chisholm left London to become a lecturer in geography at Edinburgh, and he wrote programmatic statements for the new discipline of economic geography. George G. Chisholm's statement points to the important local, placed-factors and their…

Today the definition of the word consumption is commonly known as eating, drinking or ingesting something. But the definition that is not too commonly know is the using up of resources. This is due to the lack of education on the consumption of our natural resources. In Thomas L. Friedman’s “Our Carbon Copies (or, Too Many Americans)” and the written debate between Robert W. Kates and J. Anthony Cassils in “Is Limiting Consumption Rather Than Limiting population The Key To Sustainability”, they…

Free-Trade and Protectionisms Free-Trade is the most important part of the economic systems in the world, but it may also cause downfalls in the economy resulting in many job losses, as experienced in the United States. “Protectionism is the trade protection that is the deliberate attempt to limit imports or promote exports by putting up barriers to trade (Milner).” Economist have looked to different protections to counter the negative impacts that are the results from globalization and…

compels a state to participate in international trade. Focusing on US exports they find that political influence from CIA interventions were used to increase demand for US products in areas where there was a comparative disadvantage. In their study the independent variable is the level US government influence on other states and the dependent variable is the annual bilateral trade level between the US and said state. They measure international trade (using the gravity model) between the US and…

pattern of trade. Hecksher-Ohlin’s model on the other hand says, trade comes as a result of differences in resource endowment in each country. The objective of this essay is therefore to compare and contrast the classical (Ricardian model) and Heckscher-Ohlin (HO) model of the commodity composition of trade and discuss the differences in assumptions, post trade production points, and the effects of trade on the distribution of income. As said earlier, the determinant of the pattern of trade in…

Criticisms of the HO model The HO model assumes that only two countries trade with each other which are unrealistic. International trade is where many countries across the world imports and exports goods to each other. In practice, labor and capital are mobile. Furthermore, different consumers have different levels of ability from the same goods. Moreover, technology is costly in most of the countries and they have different technical knowhow, depending on the structure of the population. Lastly…