Economic theories in International business
ECONOMIC (OR) INTERNATIONAL TRADE THEORIES IN INTERNATIONAL BUSINESS
Trade theory mainly focuses on the following questions:
– What products to import and export?
– How much to trade?
– With whom to trade?
There are various theories for international business. These are,
According to mercantilist theory, countries should export more than they import and if successful, would receive the value of their trade surpluses in the form of gold from the country.
Balance of trade = Total Export of goods and services – Total import of goods and services
02. Neo Mercantilism
Recently, the term