International Business, Competitiveness of Location

INTERNATIONAL BUSINESS

ASSIGNMENT

“Whatever recent developments have occurred in international trade theory, in reality, the competitiveness of a location reflects the availability of resources in that location.” Discuss this statement in the light of contemporary patterns of world trade and in the light of contemporary theories of trade.

WORD ACCOUNT: 2,924 words

International trade could be define as the exchange of goods and services across the borders, it means that contrary to domestic trade, it includes the business with others countries and in this way, the development of exports and imports. Each country in the world participates to the trade in function of its production, which is determinate by the resources available on the area. A resource could be a natural resource a human resource or a resource in term of process which could be tangible (e.g. capital) or intangible (e.g. technology). Some tendencies could currently help to lightening the situation of world trade and so to have a clear understanding of why several locations have a competitive advantage to compare with others. For instance, nowadays, industrialized countries are the most participative in international trade, in particular with their exports that represent 60 percent of the total amount of exports in the world (Fredrick P.Stutz and Barney Warf, 2005, pp.433). It is also interesting to notify that much of their trade is operating with each other. That is why this type of countries has keys to conduct the world trade and establish themselves as leaders. The most representative example is the United States, which is the largest single participant in international business with the higher amount of imports and exports. Based on these facts, it seems to be clear that countries that have the easier availability of resources on their location have a complete advantage to develop the competitiveness and...