TEORIAS DEL COMERCIO INTERNACIONAL

Theories of International Trade

Overview of International Trade Theories

• The theories of international trade aim to identify the causes and effects of this phenomenon on production and consumption, incorporating theory, policy, and business strategy.

• This video covers major approaches to international trade, their characteristics, and a special example illustrating one significant theory.

Mercantilism

• Mercantilism is characterized by wealth accumulation in precious metals; states implement protectionist measures such as controlling local currency and imposing taxes.

• It reinforces the idea that wealth accumulation reflects power. Critics like Adam Smith argue against this notion.

Absolute Advantage Theory

• Adam Smith's absolute advantage theory posits that a country excels in producing certain goods more efficiently than others, leading to exports where productivity is highest.

• This theory emphasizes lower labor hours required for production compared to other nations.

Monetary Theory by David Hume

• David Hume challenges mercantilist views by suggesting that accumulating gold through trade surpluses increases money supply, raising prices and wages.

Comparative Advantage Theory

• David Ricardo's comparative advantage uses opportunity cost to determine which goods should be produced based on relative efficiency.

• Countries specialize in producing goods they can manufacture at a lower relative cost.

Factor Proportions Theory

• Samuelson's factor proportions theory states that comparative advantage arises from resource interaction, including factor abundance and technology levels.

Similarity of Incomes Theory

• Linder’s similarity of incomes theory suggests that international trade in manufactured goods intensifies between countries with similar per capita incomes.

Product Life Cycle Theory

Stages of Product Development

• Raymond Vernon’s product life cycle analogy describes four stages: introduction, growth, maturity, and decline for consumer products.

Competitive Advantage

Porter’s Competitive Advantage Theory

• Porter's competitive advantage focuses on unique characteristics that allow firms to outperform competitors for higher returns.

Strategic Rivalry among Multinational Corporations

• This concept examines how multinational companies strive for competitive advantages amidst global competition within their sectors.

Investment Decisions in Foreign Markets

Tonnage Theory

• The Tonnage theory posits that firms will invest abroad if they possess specific ownership advantages alongside localization benefits.

Impact of Foreign Trade on Mexico

Mexico's Role in International Trade

• Mexico has become the second-largest supplier to the U.S., attributed not only to logistics but also high productivity levels in manufacturing.

Textile Industry Example

• Sam Wilson’s theory illustrates Mexico's labor abundance compared to U.S. capital intensity within its textile industry.

Economic Contributions

• The Mexican textile sector comprises around 20 thousand companies (90% SMEs), generating approximately one million jobs and contributing significantly to GDP.

Export Dynamics