In a globalising economy, territories and not just firms increasingly find themselves in competition with each other. In fact, differently from the case of countries, cities and regions compete, on the international market for goods and production factors, on the basis of an absolute advantage...

This paper analyses trade policies in the European Union. The common commercial policy is based on equal principles, particularly for changes in tariff rates, the conclusion of tariff and trade agreements, equal measures of liberalization, export policy and measures to protect trade with those...

Problemele competitivitatii pot fi abordate la nivel microeconomic (al firmelor, organizatiilor, etc.), cat si la nivel mezoeconomic (al sectoarelor economice sau ramurilor), macroeconomic (la nivelul unei tari) sau chiar megaeconomic (al unui numar de tari – cum ar fi Uniunea Europeana). De...

The increasing globalization of agricultural markets in recent decades appears to be changing the economics of the American production agriculture sector, reducing its economic importance and raising questions about its life cycle. This study contributes to the product life cycle literature by...

Trade is shown to increase economic growth purely through comparative advantage without recourse to scale effects, technology transfer, research and development, or even international investment. The resulting growth rates are those that would result from technology transfer, even though no...

The changes of production factors priorities affect more and more the evolution of global economy, requiring reorientation of development policies both at company level and at national economies level to adapt to the phenomenon called: “the new economy” or “knowledge economy”. If for...

In this paper we closely examine the implications of comparative advantage for foreign direct investment (FDI) incentives. Particularly, we find that the host country¡¯s comparative advantage sector is more attractive to inward FDI than its comparative disadvantage sector. This finding is...

Division of labour is the specialization of cooperative labour in specific, circumscribed tasks and roles, intended to increase the productivity of labour. Historically the growth of a more and more complex division of labour is closely associated with the growth of total output and trade, the...

We introduce a simple web-based classroom experiment in which students learn the Ricardian model of international trade. Students are assigned to countries and then make individual production, trade and consumption decisions. The analysis of experimental data introduces students to the concepts...

This paper obtains new results about absolute and comparative advantage, by introducing international technological differences into the three-sector Findlay-Komiya and two-sector Oniki-Uzawa-Stiglitz models ofopen-economy growth with optimal saving. For example, ifa country has the same...