Question

Hello, I need to develop a presentation on the International Trade Theory. I need at least information for 3 slides and a conclusion. Thanks!

Answer 1

Slide I : 1) What is International trade ?

2) On what factors a country determines which good to import and which good to export with other countries

Slide 2: Most of the countries trade because of Different factors like unavailability of required resources, different preference of people, cost advantage and other economic factors.

The main reason for them to trade to achieve economic scale of production.

Slide 3: International trade theory always suggest that free trade is better than restricted trade and some trade is better than no trade.

Slide 4: There are two types of trade theories

1) Absolute advantage theory

2) Comparative advantage theory

Slide 5:

Absolute advantage theory : When two countries are in trade the country which produces a certain good extra than other country will have absolute advantage

Comparative advantage theory: The country which can produce good at a low opportunity cost will have comparative advantage over other country.

Slide 6: Due to this trade there are so many gains like having good international relations with other countries. People will get goods of different countries at low price and we export and create new market for our goods.