<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073102555/324680/globe.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (1.0K)</a>CHAPTER 5

Opening Case
International Trade in Information Technology Hardware and U.S. Economic Growth

Introduction

An Overview of Trade Theory
     The Benefits of Trade
     The Pattern of International Trade
     Trade Theory and Government Policy

Mercantilism

Absolute Advantage

Comparative Advantage
     The Gains from Trade
     Qualifications and Assumptions
     Extensions of the Ricardian Model

Country Focus
Moving U.S. White-Collar Jobs Offshore

Management Focus
Free Trade and REI

Heckscher-Ohlin Theory
     The Leontief Paradox

The Product Life-Cycle Theory
     Evaluating the Product Life-Cycle Theory

New Trade Theory
     Increasing Product Variety and Reducing Costs
     Economies of Scale, First-Mover Advantages,
          and the Pattern of Trade
     Implications of New Trade Theory

National Competitive Advantage: Porter’s Diamond
     Factor Endowments
     Demand Conditions
     Related and Supporting Industries
     Firm Strategy, Structure, and Rivalry

Management Focus
The Rise of Finland's Nokia
     Evaluating Porter's Theory

Implications for Managers
     Location
     First-Mover Advantages
     Government Policy

Chapter Summary

Critical Thinking and Discussion Questions

Research Task

Closing Case
Logitech