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Cashew Case Study

Autor:   •  November 19, 2011  •  Essay  •  303 Words (2 Pages)  •  1,201 Views

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Basically, international business can be easily defined as transactions that are devised and carried out across national countries borders, to sastify the objectives of individuals and organizations. There are three types of international business. Firstly, primary types which encompasses imports and exports of goods or services. A good example of this would be "Foreign Direct Investment". Secondly, the secondary types are those that are "wholly owned subsidiary" and "joint venture". While others encompasses licensing, franchising, management contract and et cetera.

International trade can be seen as a tool to improve our standard of living and it definitely benefit all participating countries. It's making sense that it's better to specialise rather than people trying to be self-sufficient and do everything for themselves.

The reasons for international trade are really only an extension of the reasons for trade within a nation. It's a norm for people to specialise in the jobs they do and earn money from their labour, then they use the money to buy goods they need; goods that other people have specialised in producing.

International Trade is a must in today competitive world. In order to succeed and not to become poor, a country must practice international trade.

01. WHAT TRADE THEORIES HELP TO EXPLAIN WHERE CASHEW TREE PRODUCTS HAVE BEEN PRODUCED HISTORICALLY?

They are altogether three types of trade theories to explain where cashew tree products have been produced historically. Firstly there is the principle of absolute advantage by Adam Smith which stated that each country should produces goods that it is good at. This trade theory led David Ricardo to his law of comparative advantage arguing the fact that what if a country is good at everything. Lastly, comes Michael E Porter with his modern type

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