International Trade Theory

Paper Summary:

In this article the writer explains that the decision has been made to open a business in India. The writer points out that the business would be exporting video games to the general public residing there. In order to justify such a decision this report uses the international trade theory which is explained in this paper. The writer maintains that with a majority of the components from the international trade theory having been studied and applied to this situation, the proposal is purported to be a viable option for the company. The writer concludes that the company would benefit from establishing a business in a foreign country and the foreign country would benefit from having additional services and products available for its citizens.

From the Paper:

"Reform of the international financial system was really not a major factor in this study since it has already been reformed in previous years. To reform the system again in order to facilitate a common financial foundation between the two countries does not make a lot of sense at this particular time."
"Other relevant factors in this decision are whether the costs of doing business in India is similar to the current costs of doing business elsewhere, and they seem to be very similar. The expense factors in India are actually much lower than other developed countries in the world, although they are slowly but surely catching up. With these factors taken into consideration there seems to be a fairly certain probability that the business will be successful and that the company will benefit from opening and initiating business in India."

Sample of Sources Used:

• Bloomfield AI, (1994), Essays in the History of International Trade Theory, Aldershot, England: Edward Elgar Publishing
• http://emlab.berkeley.edu/users/visfac/e280a_sp02/syllabus280a.pdf., accessed July 11, 2006
• James AM, (1994), Books - Reviews; Essays in the History of International Trade Theory (Book), European Journal of the History of Economic Thought, Vol 1 Issue 3, pg 606
• Obstfeld M, Rogoff K, Foundations of International Macroeconomics, The MIT Press

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