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Trade Theories Homework Answers

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Trade Theories Assignment Answers

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The concept of exchange of goods and services between to entities or people is called trade. Thus an, exchange involving entities or people in different countries can said to be international trade. There are various theories revolving around international trade. With the help of experts at myhomeworkhelp.com, you can learn about these theories. That way, you can also get trade theories homework answers, meanwhile learning about the topic.

International trade theories are nothing but theories that explain the international trade concept. There are various theories, the traditional theories are the ones that are relatively old while the newer ones are said to be modern theories.

Mercantilism

Being developed in the 16th century, this theory is said to be the oldest one.ย  The mercantilism theory states that the wealth of a country may be determined through its holdings of silver and gold. These theorists felt that all the countries should increase their holdings of silver and gold through reduction of its imports and increase of exports. At that time, silver and gold were considered as currency.

This theory suggests that a country should try to have a trade surplus, meaning the export value being greater than import value. Similarly, countries should try to avoid trade deficit. It is a very important trade theory that should be discussed in details in trade theories homework answers. Our tutors can explain the entire theory and discuss all the important details. With their help, you can learn about this theory in no time.

Absolute advantage

According to the theory of absolute advantage, a country must specialize in production of the goods that can be produced by them at a less expensive rate as compared to other countries. Such goods shall be exchanged with the goods that other nations are producing at a cheaper rate. With help on this theory or any other trade theory, you can always hire our online homework help service. We would be happy to offer you assistance.

Comparative advantage

You might have to discuss the merits and demerits of different theories in your trade theories assignment answers. For instance, all the international trade problems are not properly taken care of with the theory of absolute advantage. With the increase in trade among nations, it also got more complex.

According to this theory, there is a comparative advantage when a nation is capable of producing a commodity in a better and more efficient manner as compared to other commodities. While absolute advantage theory focuses on absolute productivity, this theory focuses on relative difference in productivity.

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