©2004 Prentice Hall6-1
Chapter 6:
International
Trade and
Investment
Theory
International Business, 4th Edition
Griffin & Pustay
©2004 Prentice Hall6-2
Chapter Objectives_1
Understand the motivation for international
trade
Summarize and discuss the differences
among the classical country-based theories
of international trade
Use the modern firm-based theories of
international trade to describe global
strategies adopted by businesses
©2004 Prentice Hall6-3
Chapter Objectives_2
Describe and categorize the different
forms of international investment
Explain the reasons for foreign direct
investment
Summarize how supply, demand, and
political factors influence foreign direct
investment
©2004 Prentice Hall6-4
International Trade
Trade: voluntary exchange of goods,
services, assets, or money between one
person or organization and another
International trade: trade between
residents of two countries
©2004 Prentice Hall6-5
Figure 6.2 Sources of the World’s
Merchandise Exports, 2001
37%
12%
7%
4%
40%
European Union
United States
Japan
Canada
Other countries
