International trade theories

Summary

International trade is exchange of capital, goods, and services across international borders or territories, Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods and services produced within their own borders.

on page describes the best theories for export:

absolute advantage: where exporting countries must produce the best for best profit and returns

comparative advantages:  when not necessarily be an absolute advantage, this happens when the trade between the two countries are different these benefits costs are only in the production

factor endowments: exporting countries to intensity factors and whether you own few factors.