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- •Introduction
- •The Gains from Trade: Ghana and South Korea
- •Introduction
- •An Overview of Trade Theory
- •The Benefits of Trade
- •The Pattern of International Trade
- •Trade Theory and Government Policy
- •Mercantilism
- •Absolute Advantage
- •Table 4.1
- •Comparative Advantage
- •The Gains from Trade
- •Table 4.2
- •Qualifications and Assumptions
- •Dynamic Effects and Economic Growth
- •Heckscher-Ohlin Theory
- •The Leontief Paradox
- •The Product Life-Cycle Theory
- •Evaluating the Product Life-Cycle Theory
- •The New Trade Theory
- •National Competitive Advantage: Porter's Diamond
- •Figure 4.6
- •Factor Endowments
- •Demand Conditions
- •Related and Supporting Industries
- •Firm Strategy, Structure, and Rivalry
- •Evaluating Porter's Theory
- •Implications for Business
- •Location Implications
- •First-Mover Implications
- •Policy Implications
- •Chapter Summary
- •Case Discussion Questions
Case Discussion Questions
To what extent does the theory of comparative advantage explain the rise of the Indian software industry?
To what extent does the Heckscher-Ohlin theory explain the rise of the Indian software industry?
Use Michael Porter's diamond to analyze the rise of the Indian software industry. Does this analysis help explain the rise of this industry?
Which of the above theories--comparative advantage, Heckscher-Ohlin, or Porter's--gives the best explanation of the rise of the Indian software industry? Why?
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