International Trade And Comparative Advantage Economics Essay

International Trade And Comparative Advantage Economics Essay International Trade is the exchanging process of goods, and services across the international border. In 2010, the value of international tread achieved 19 trillion (US) dollars that is about 30% of the world GDP (Abedini, n.d.). That is nearly one third of production of goods and services are exchanged internationally around the world. International trade is the exchange between two people or entities in two different countries. International trade theories are different type of theories that explain international trade (New Charter University, 2012). People want to exchange goods and services because they believe that they get benefit from the exchange. Many economists believe that the participation in international trade increase productivity. Trade theoretical work suggests that the level of productivity and growth may increase through its effects on technology. There are many portion of international trade, which lead to technological change and this increased the rate of economic growth. There are mainly three mechanisms by that technology change: increased competitive pressure, embodiment in imports and knowledge transfer by commercial contacts (Sjà ¶holm 1997) Economists have developed theories to explain the mechanisms of global trade. The main historical theories are called classical theory. This is based on country. After some time theories began to move to explain trade from a firm or company based not a country perspective. This is known as modern theory(New Charter University, 2012). Classification of different theories: http://images.flatworldknowledge.com/carpenteribus/carpenteribus-fig05_004.jpg COUNTRY BASED THEORIES Mercantilism This theory is the earliest theory which developed in the sixteenth century. According to this theory a countrys wealth is determined by the amount of its gold and silver holding(New Charter University 2012). Mercantilist believed that a country should increase its gold and silver by the increase of export and discouraging the import (7). The main purpose of each country was to have trade surplus, and avoid a trade deficit. Through a form of neo-mercantilism countries such as Japan, China, Singapore, Taiwan, and even Germany still favor exports and discourage imports(New Charter University, 2012). Absolute advantage Adam smith offered a new theory called absolute advantage. This theory stated that a country focus on the ability to produce a good more efficiently than another nation (New Charter University, 2012). He said that trade should follow naturally according to market forces. For example if one country produce a good cheaper and faster as compare to other so it is better to focus on specialization on producing that good. Smiths theory said that increase the specialization in both countries would benefit for both countries and trade should be also encouraged (7). This theory state that a country wealth cannot be measure by how much gold and silver it had but by the living standards of its people can be measure. Comparative advantage David Ricardo, introduce the theory of comparative advantage in the 1817(New Charter University 2012). This theory stated that if only one country had the absolute advantage in the production of more than one product, specialization and trade could still occur between two countries. When a country cannot produce a product more efficiently than the other country than comparative advantage occurs. It can produce that product better and more efficiently than it does other goods (Voss Voss, 2008). This theory explains that how countries through imports can increase their welfare by simultaneously selling goods and services in international market (7). Two countries can get benefit even if one country could produce all goods with fewer resources. The other, provide the relative efficiency with which goods can be produce differs between the two countries. (John Sloman) Heckscher-Ohlin Theory (Factor Proportions Theory) Eli Hechscher and Bertil Ohlin, focused their attention on how a country could gain comparative advantage by producing products(New Charter University, 2012). This theory mostly focuses on countrys production factors like land, labor, and capital, which provide funds for investment in plant and equipment. This theory said that the cost of any resource depend on supply and demand. This theory is also known as factor proportions theory. Countries would import goods that were in short supply, but higher demand. For example, in China and India labor cost is cheap hence these countries have become the optimal location for labor intensive industries (Lee, Qian, Julie, and Ying, 2004). Modern or Firm-Based Trade Theories These theories came out after Second World War. Large part of these theories is developed by business school professors, not economist. The firm-based theories incorporate other product and service factors that include brand and customer loyalty, technology and quality, into the understanding of trade flows. Country similarity theory This theory devolved in 1961 by the Steffan Linder (New Charter University, 2012). Linders theory said that consumers in countries that are in the same or similar stage of development would have similar preferences. This theory stated that companies first produce for domestic consumption. It is very difficult to find out similar market as like domestic one, on the basis of customer preference. This theory is useful in decision-making and purchasing processes in understanding trade in goods where brand name and product reputations are most important factors in the buyers. Product life cycle theory This theory stated that every product life cycle has three distinct stages: new product, maturing product, and product decline. This theory developed by Harvard Business School professor Raymond Vernon(New Charter University, 2012). Global strategic rivalry theory Economist Paul Krugman and Kelvin Lancaster introduce this theory in 1980(New Charter University, 2012). This theory based on MNCs and their efforts to gain a competitive advantage against other global firms in there industry. Porters national competitive advantage theory In 1990 Michael Porter of Harvard Business School developed a new model of explain national competitive advantage(New Charter University, 2012). This said that a nations competitiveness in an industry depends on the capacity of the industry to innovate and upgrade. Porter identified four determinants that he linked together (Smit, 2010). The four determinants are local market resource and capabilities, local market demand conditions, local supplier and complementary industries and local firm characteristics. http://ars.els-cdn.com/content/image/1-s2.0-S0308596104000795-gr2.jpg(15) Assumptions of comparative advantage: Comparative advantage theory is helpful to make a number of assumptions. This theory said that there are no transportation costs or can say transportation cast are ignored. Mostly all costs are invariable and there are no economies of scale. There are only two economies creating two goods. This theory assumes that all traded goods are homogeneous. This theory assumes that factors of production are assumed to be perfectly mobile. This theory assumes that no tariffs or other trade barriers. This theory provides perfect knowledge, so that every buyers and sellers know where they can get cheapest goods internationally. This theory assumes labor is perfectly mobile within the country but perfectly immobile between countries. Doubling the inputs in each country leads to a doubling of total output of company. LITERATURE REVIEW New Zealand is heavily dependent on international trade. Currently import protection of New Zealand is low. Vernon was the first to who alert to rising importance of codified knowledge and key skill as a platform for the product cycle, outsourcing, off shoring and franchising. New Zealand has wage ratios that are less or more typical of the North. So there is one question came out, how can New Zealand firms and government plan future trade capability in this global market environment? The large countries not depend on the external sector as much as the small countries. Small countries depend on the external sector to achieve higher economic growth and maintain a higher living standard. New Zealands is also not potential to generate good economic it is also dependent on its international competitiveness. New Zealand is dependent on export achieve sustainable growth. The major portion of New Zealands external trade of export income comes from bulk commodities such as meat and dairy products, wood and pulp(9). Primary commodities still dominate New Zealands export- in the 60s the share of primary commodities was over 85%. Now days, New Zealands land-based export is 67%.(9) In other developed countries the primary export share is decreasing as manufacturing but service exports are rising. New Zealand produces a large quantity of primary commodities because of good natural resource endowment. The primary sector of New Zealand to export is agricultural, horticultural, and forestry industries(9). The homogenous nature of the New Zealand agribusiness and forestry sectors and New Zealand focus in research, development and innovation in these sectors that can improve the export competitiveness. This focus has positive implication for economies of scale. Between 1999 and 2007 the New Zealand gained and lost comparative advantage in more than 200 products(10). This information suggests that New Zealand exporters want to change market demands and opportunities. Beyond the primary product sector New Zealand has not diversified. New Zealands economic developments start since the late 1890s by the opportunity to sell primary product products like wool, dairy products and meat to the United Kingdom and other industrialized countries(9). But after the Second World War the demand for food and industrial raw materials was increased. This demand increased export activities of many countries including New Zealand. Analysis of export and import of New Zealand Export and import can be a great way to inter into new market and expand business. New Zealand context, policy-induced distortions are perhaps less prominent on the imports side than the exports side. New Zealand exports statistics measure sales by resident firms and individuals to non-residents. The incomes of New Zealand include in investment income rather than exports in balance of payment statement. New Zealand is heavily dependent on agricultural products. More than one-third of the worlds international dairy trade leads by New Zealand. More than 100 million people feed dairy product. New Zealand dairy industry contributes 25% of export earnings(12). In 2009 New Zealands total exports amounted to $26.25 billion, its total imports came in at $24.29 billion (11). In December 2011 New Zealand total export grew by 9.6% to reach $47.7 billion. Australia is the largest exports market for New Zealand, taking 22.7% of New Zealands exports. New Zealands second largest market for export is China. New Zealand nearly export 12.3% to china and New Zealands export to the china grew by over $1 billion in 2011(13). New Zealand export to the USA 8.4% of its total export. In the year of December 2011 the total imports of New Zealand, valued at $44.5 billion. China has good market and New Zealand imports from china were valued at $7.049 billion. New Zealand sourced 15.8%of its total imports from china. The import from Australia fell by $ 300 million to $7.039 billion. The main factor contributed to this decline was the drop in NZs mineral fuel import. New Zealand import valued from the USA at $4.8 billion. New Zealand import 10.7% of its total import from the USA. New Zealand has strongest revealed comparative advantage in product based on the agriculture, horticulture, fishing or forestry industries. These include number of product like dairy product, in particular milk, milk powder butter and cheese. These include meat, frozen sheep, beef offal and many more seafood like mussels, crayfish, and frozen fish. These also include many kind of wool like combed, yarn and greasy wool (10). Some horticultural based products including fresh fruit, clover, frozen vegetable, onions, and honey and ryegrass seeds included in comparative advantage. A number of wood products these primary-based products rely on relatively sophisticated innovation inputs such as research and development. Dairy products are a good example in New Zealands innovation in production, processing, packaging, distribution, logistics (10). New Zealand also has expertise in these areas to develop a high comparative advantage in certain elaborately transformed manufactures. These contain machines for cleaning, sorting, grading, and dairy machinery, agricultural and bee-keeping plant, and milking machines. New Zealand has very good comparative advantage in a verity of manufacturing product and these manufactures are intermediate or capital good used by businesses rather than households (10) (9) CONCLUSION The aim of this text is to provide more insight on the concept of international trade and its impact in global economy. Several theories have been forwarded to explain the dawn of this global phenomenon influencing the New Zealand trade and businesses around the world. Although the theories have started from the classical view point stemming from the fact that trade has it is based on countries, it should evolved to encompass the idea that organizational perspective seems more feasible. The continuum explaining the advent of international trade started mercantilism advocating the need to encourage export and discourage import but with many criticisms from the forefather of Economics Adam Smith with his Absolute advantage theory which seemed much avant-gardes at that time. The relatively recent theory adding to the literature of International Trade is that of Porters national competitive advantage theory preaching the importance of national competitive theory of an industry to constantly innovate. Theories proposed by great researchers have been numerous each criticizing or adding to the existing literatures. However, it cannot be denied that in this era of globalization and interdependency of nations, international trade has become the buzzword of most economists. Despite criticisms and its certain drawbacks, International Trade is now a dominant factor in the global marketplace and nearly-if not all-countries have adopted it. As an ending word, it can be said that International Trade is here to stay.

Television and Radio Is Important to Social Media Today

Television and radio is important to social media today Anthony D. Alexander, Jr COM155 Nov 24, 2012 Instructor Iaccino Television and radio has been the engines for all social media invention today. Some argue that television and radio is no longer important to social media, people believe they don’t have a need for television and radio since the Internet, cell phones and many more. Television and radio play’s a sufficient role in everyday life, rather if you use it or not.Without, television and radio there would be more people not employed. Television and radio have many of the same capabilities, but they are also different in many ways, both are very important for today social media. Television and radio has been the source to allow the many social inventions to happen today. There couldn’t be any Internet, cell phones, and smart phones, smart TV, broadcasting news, and many more. Television and radio has paved the ways for many other media today.There are pe ople who get up every morning preparing to go to work, which they would get dress and brew their coffee and hope in the car and turn on the radio: rather if it for news, weather, and nationwide morning shows: or while getting dress they turn on the television to catch some of the local or nationwide news, entertainment, and the reality show they recorded last night. Although, many don’t do this, but some do and that’s why television and radio still have the same value today as the past years.Some argue that television and radio is no longer important to social media, people believe they don’t have a need for television and radio since the Internet, cell phones and many more. Some believe the value of television and radio has extinct and no one needs it for social media today. I have asked many people if they feel this way and the majority responses where â€Å"I don’t watch TV that often and some said they â€Å"don’t have a care to listen to rad io†.Many people don’t think of how much they really use television and radio while completing my resource and asking people question about television and radio and them to compare and contrast was very interesting. By asking them these question it brought up how important both are, and how they compare and contrast. Television and radio play’s a sufficient role in everyday life, rather if you use it or not.Television and has many comparisons: they both open the door for many other social media, they both have electrical cords that plugs into a outlet, both can be use portable, both give you news, entertainment, live broadcasting, both can be used by a remote, both have speakers, both plays music, and many more. Television and radio both are also very different like: television shows a picture with voice which radio only have the voice, radio has sound waves that could be pick up anywhere and television can’t.This is what makes radio so important, many of u s has family and friends that’s fighting for our county and who is not able to watch the television to see what going on in the news, politics, sports or weather reports. Television allows a person to watch and listen, once a pond a time this was far fetch. Years ago you couldn’t tell people that we would be able to watch a picture on a little box (now big boxes). Television shows you different events, entertainment, also news and live broadcasting from all over the world. Radio works in underwater ships, and in the rain forest where there is no television.Television is one of the most expensive ways of social media, and radios are giving away free if you are able to find the right place. We would be nowhere without television and radio. If it wasn’t for television and radio, we would not know who the president is and doing for our country, if not for radio how would we known when Martin Luther King, Malcolm X, President Kennedy where killed, if it wasn’t for television how would we known and seen the OJ Simpson, D. C. murder trails, the massacre that took place at Columbine high school or the killing of Osama Bin Laden.Without, television and radio there would be more people not employed. Television and radio formed the word â€Å"celebrity† there would not be one if not for television and radio. Today there are many of actors and actress, sports players, musicians, advertisement companies, Wall Street or inventions such as computers, smart phones, Internet, cable, satellite television and radio, game systems. These items came from the root of television and radio, without these we would have no social media today. From the root of television and radio we have one of the largest social media sites there is Facebook.Facebook still incorporates television and radio every day, with advertisement on the radio and television, plus Facebook also filmed a movie about how Facebook started. Facebook would not have been what it is tod ay if it had not utilized the pioneers which are television and radio. Now, you can connect with all social media through your smart phone. Smart phone has a radio, television, and the Internet. Smart phone allows you to select application where you can do much more than a television and radio, but all are stems to the root of television.Television and radio have many of the same capabilities, but they are also different in many ways, both are very important for today social media. Television and radio has shown why they are the pioneers of social media, no social media could have ever been possible without television and radio. Television and radio should be important to your social media, The lack of television and radio means no information for use. I was one who never cared about television or radio, until I went a week without the booth and I thought I was clueless to the world.

Provoking Uncommon breakthrough

Introduction Everyone at some point in their lives have that one thing that bothers them so deeply that they would only wish they happen by magic. There are uncommon problems that have limited many from advancing to a higher level where God wants us to be. It is God's will and desire that His children are blessed beyond measure, Irrespective of our color, background and beliefs. If not so, why does God allow the sun to shine on the good and on the evil?God truly desires that we should be blessed In all works of fife, in marriage: He desires that we are fruitful, in business and career He desires that we expand and break out from the North to the South, East and west, in Ministry; He desires that we reach out to millions of souls and depopulate hell, etc. Why then is it almost impossible and difficult for many to attain the height that God wants them In? Breakthrough Is quite easy to understand, It is an act of breaking through and obstacle.For a great door and effectual Is opened unt o me, and there are many adversaries – 1 Corinthians 1619 Abraham was in a predicament that many would eve considered shameful, he was mocked, he was questioned, he was cheated, he was manipulated, and he was threatened. Though he had all things, but he had no child of His own. He needed an uncommon breakthrough for that uncommon problem. The predicament of Abraham and his wife Sarah was such that everything around them proved Impossible that even Sarah lost hope. She was no longer Like other women. I bet she no longer saw her period. He had lost the fire In ever young woman, she had lost the passion to meet with her husband, she was completely hopeless. Uncommon problems need uncommon breakthrough that can only be rough about by the hand of God. If you need the hand of God to move on your behalf today, there are certain steps to take. Tonight, Ill be pointing out three steps that have worked in the bible, In my life and will forever deliver to you If you believes things were written In the scriptures long ago to teach us. And the scriptures give us hope and encouragement as we wait patiently for God's promises to be fulfilled.Whatever must deliver, has already delivered for someone in the time past, only follow the same steps and you'll command the same result. 1. SACRIFICIAL GIVING Isaiah 51:1 â€Å"Listen to me, all who hope for deliverance?all who seek the LORDS Consider the rock from which you were cut, the quarry from which you were mined. Yes, think about Abraham, your ancestor, and Sarah, who gave birth to your nation. Abraham was only one man when I called him. But when I blessed him, he became a great nation. † (NIL) Look to Abraham, what was it that Abraham did that brought about the uncommon breakthrough?Remember, he was promised by God he would have a child, when the father, son and Holy Spirit, did not come for that purpose, they were on their way to esters Stood†¦.. Abraham saw them, he could have ignored them, even though he knew who they were but he chose to welcome them and offered hospitality†¦.. Abraham gave from his Abraham did not Just say, well God promised me that I'll have a child, so I do not have to labor for it. The earth belongs to the Lord, etc he does not need my offering†¦Ã¢â‚¬ ¦ Abraham, gave voluntarily. I want this blessing so I must give. I have to let something leave to create room for something tangible to come in.Proverbs 18:16 A man's gift make room for him, and bringing him before great men†¦Ã¢â‚¬ ¦. Share your green card story†¦. Never get tire of giving sacrificially, you may have been giving, don't worry how that can provoke God to action Why sacrificial giving does not produce†¦Ã¢â‚¬ ¦ Sow on a fertile ground, give to vessels that God knows and relates with. If giving, sacrificial giving that is, brings about uncommon breakthrough, why have my savings not yielded any fruit? When a farmer sows a seed on an infertile soil, not only will the seed die, b ut the farmer will have nothing to harvest.If the farmer sows a bad seed, it will be impossible to reap a good seed. If the ground is not well prepared, the outcome may come out deformed. So also is giving, Don't Just sow a seed because you want something to leave your hand†¦.. A little boy of about 2-3 years old, gave a seed that turned his health around. (Tell Chiders story). 2 Kings 3:17-18; 26-27 Sacrificial giving can turn the hand of God around instantly. God looks at the heart of the giver. He saw that Abraham gave from all he had, He could not have left without blessing His household. ————Fertile ground for example, ————-The poor in the land (Duet. 15:11) †¦.. Servants of God Kings 4 – Allies, because of hospitality, the equanimities son was brought back to life. What is that hopeless case in your life, I charge you tonight to go out there and do someone a huge blessing. I charge you to locate someone i n dire need and bless them sacrificially. I charge you to surprise someone with a gift. Don't bring me a gift because you desire to have me in your bed, or you desire a favor from the leader or you desire a rich message from prophet Moses or Keen.

Essay on Wonderment and Awe the Way of the Kami - 4711 Words

Wonderment and Awe: the Way of the Kami When watching the fantastic anime (animation) of Japanese director Hayao Miyazaki, it soon becomes apparent that he has infused his richly detailed worlds with an animistic world-view that references ancient Japanese beliefs, practices and myths. His films describe an intriguing mixture of earthy spirituality particularly drawn from the Shinto tradition. Shinto is less a religion than a way of life – a pantheistic and animistic faith that believes that every object possesses a spirit, and encourages nature worship, folk beliefs, ancient deities and rituals. It has no dogma or moral doctrine, except for four general tenets: worshipping and honouring the kami; love of nature; tradition and the†¦show more content†¦The framework of ‘the Ancient Way’, as developed by 18th century scholar Moto-ori Norinaga, offers the clearest codification of the earliest form of Shinto and this is where Miyazaki’s sympathies appear to lie. Through extensive studies of the Kojiki during the 1750s – a book that could be described as the ‘bible’ of Shinto – Norinaga describes the humble and non-intellectual ideas in this pre-modern faith. As opposed to the other spiritual ‘Ways’ such as Buddhism (‘the way of the Buddha’) and Confucianism (‘the way of Confucius’), Norinaga translated Shinto’s way (‘the way of the kami’) as just an ordinary path (Matsumoto 1970:76). This distinction of ordinariness and its non-dogmatic quality is particularly important as there are serious political and historical implications in the study of Shinto. However, in reading the symbolism and narrative of the Miyazaki’s films, it seems that he is attempting to move away from the contemporary sense of Shinto and its associated political discourse, and is instead seeking to redefine and recapture the ancient form of Shinto via a kind of visual cinematic practice. Honouring the Kami In ancient Japan, naturally occurring phenomena that were particularly awe-inspiring were given the title of kami, or gods, and were sometimes thought to possess the power of speech. Around the time these beliefs arose, during the early Jomon period (10,000 BC – 300 BC), it was believed that respect