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    Chapter 3 - International Trade

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    Armie Landrito
    The document discusses international trade agreements and theories. It describes the General Agreement on Tariffs and Trade (GATT) which was signed in 1947 by 23 countries to promote trade. The World Trade Organization (WTO) now regulates international trade. The document also outlines several challenges to global trade and theories that evaluate trade including the Heckscher-Ohlin, Samuelson-Ohlin, Krugman, and Michael Porter models.

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    Chapter 3 - International Trade

    Uploaded by

    Armie Landrito
    10 views11 pages
    The document discusses international trade agreements and theories. It describes the General Agreement on Tariffs and Trade (GATT) which was signed in 1947 by 23 countries to promote trade. The World Trade Organization (WTO) now regulates international trade. The document also outlines several challenges to global trade and theories that evaluate trade including the Heckscher-Ohlin, Samuelson-Ohlin, Krugman, and Michael Porter models.

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    CHAPTER 3- INTERNATIONAL TRADE

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    The document discusses international trade agreements and theories. It describes the General Agreement on Tariffs and Trade (GATT) which was signed in 1947 by 23 countries to promote trade. The World Trade Organization (WTO) now regulates international trade. The document also outlines several challenges to global trade and theories that evaluate trade including the Heckscher-Ohlin, Samuelson-Ohlin, Krugman, and Michael Porter models.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    10 views11 pages

    Chapter 3 - International Trade

    Uploaded by

    Armie Landrito
    The document discusses international trade agreements and theories. It describes the General Agreement on Tariffs and Trade (GATT) which was signed in 1947 by 23 countries to promote trade. The World Trade Organization (WTO) now regulates international trade. The document also outlines several challenges to global trade and theories that evaluate trade including the Heckscher-Ohlin, Samuelson-Ohlin, Krugman, and Michael Porter models.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    CHAPTER 3 INTERNATIONAL

    TRADE
    GENERAL AGREEMENT ON TARIFFS AND TRADE
    (GATT)

    • (GATT) was signed by 23 countries in october 1947

    • (GATT) is a legal agreement between many countries, whose overall purpose


    was to promote international trade by reducing or eliminating trade
    barriers such as tariffs or quotas. \

    • The purpose of the General Agreement on Tariffs and Trade (GATT) was to
    make international trade easier.
    GATT MAJOR PRINCIPLES

    1. MOST -FAVOURED -NATION (MFN) TREATMENT

    2. RECIPROCITY

    3. TRANSPARENCY

    4. TARIFF BINDING AND REDUCTION


    ROLE OF GATT IN PROMOTING INTERNATIONAL
    TRADE
    • The GATT was established in 1948 to regulate world trade.

    • The main role of GATT in the international trade was regulating the contracting
    parties to achieve the purpose of the agreement which were reducing tariffs and
    other barriers, and to achieve the liberalization in international trade.
    WORLD TRADE ORGANIZATION

    The World Trade Organization (WTO) - is an intergovernmental


    organization that regulates and facilitates international
    trade between nations.
    ROLE OF WTO IN PROMOTING INTERNATIONAL TRADE

    • World Trade Organization (WTO) is the only international organization

    dealing with the global rules of trade.

    • To increase the level of production and productivity with the view to ensuring

    level of employment in the world.

    • To expand and utilize world resources to the best


    GLOBAL TRADE MAJOR
    CHALLENGES

    • Economic Warfare
    • Geo-politicization
    • State Capitalism
    • Lack of Leadership
    • Power Distribution
    • Weaker Underdogs
    • Price Fluctuations of Natural Resources
    INTERNATIONAL TRADE MODERN THEORIES

    • The Heckscher-Ohlin model


    • The samuelson and Ohlin model
    • The krugman and obsfeld model
    • The michael porter model
    The Heckscher-Ohlin model
     evaluates the equilibrium of trade between two countries that have
    varying specialties and natural resources.

    samuelson and Ohlin model


     The increase in income brings about increase in aggregate demand for
    goods and services. To produce more goods we require more capital
    goods for which extra investment is undertaken.
    Krugman model
     The Home Market Effect. Main idea: countries will tend to export those kinds
    of products for which they have relatively large domestic demand. Two
    industries with many differentiated products within each of them.

    Obsfield model
     was centered on seigniorage aspects, the newer models rather focus on
    the importance of the governmental target function, which is influenced
    by several different issues, such as the effects of high interest rates,
    growing unemployment or real overvaluation.
    Michael Porter model

     is a business analysis model that helps to explain why various industries


    are able to sustain different levels of profitability

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