Commercial trade

Essay by carloscorreiaHigh School, 12th gradeB-, November 2008

download word file, 27 pages 0.0

Índex1-Why do countries trade with each other?Pag 31.1- What if one country has an absolute advantage in producing one good?Pag 42-Portuguese external commerce 1910-2000Pag 82.1- The opening of Portugal to the external commercePag 92.2 -The evolution of the economic structure of the external commercePag 102.3- The evolution of the geographic structure of the external commercePag 103- Portugal import and export of the (U25)Pag 134-Concrete companies examplesPag 164.1- Portugal is the world-wide leader in the exportation of cork oakPag 164.2- Portuguese companies and Indian countryPag 175. ConclusionPag 206-BibliographyPag 221-Why do countries trade with each other?The most straightforward, and longest-held, explanation of international trade is based upon differences in countries production functions. Because inputs can be combined to produce outputs with differing degrees of efficiency in different parts of the world there are gains from trade between the various regions. This explanation will be referred to as "classical" model of international trade.

In its simplest form the classical approach emphasizes the unavailability of various goods in different countries. A country may want some good which it do not produce, while a potential supplier in another part of the world wants something which is produced for the first country but not by itself. For example, if Italians wish to wear coats made of arctic fox fur and Canadians want to use olive oil, but arctic fox do not live in Italy and olive trees do not grow in Canada, then trade of furs for oil may be mutually beneficial for Italians and Canadians,(although, perhaps not for foxes ). Such examples are however, difficult to find, because few goods can not be produced in practically every country if sufficient resources are put into the production process. At most, this type of trade is limited to a few natural products; so as an explanation of...