International Trade and Competition Essay Example | Topics and Well Written Essays - 2000 words

International Trade and Competition - Essay Example Certain policies that should be employed by different trading nations all over the world in order to combat the effects of GFC have also been studied. 2. Trade Theories 2.1 Mercantilism This theory of international trade existed in the mid of 16th century. It postulated that the wealth of a nation depends on its accumulated treasure mainly in the form of gold. Trade surplus was believed to be the key trade practice. However, it had disadvantages of having restrictions in the form of government intervention and impaired growth (Reynolds, 2000). 2.2 Theory of Absolute Advantage This theory is believed to be developed by Adam Smith. It was against the mercantilism trade theory and brought in the concept of free trade. Different countries can take advantage of their efficiency in producing different products and trade for the other products. Hence all the countries would have simultaneous advantages while practicing free trade (skidmore.edu, 2007, p.1). 2.3 Theory of Comparative Advantag e This is an extension of the free trade mechanism theory. This theory takes into consideration two important concepts, namely opportunity cost and the frontier of production possibility. It believes in efficient utilization of existing resources leading to the increase in productivity. A country may be efficient in producing certain products but still it should import from other country if it is comparatively advantageous for the country (hawaii.edu, n.d.). 2.4 Factor Proportions Trade Theory It is also known as Heckscher – Olin Theory. This theory states that those goods should be exported which are locally available in plenty and that makes intensive use of factor endowments. Factor endowments are the main determinants of trade and not its productivity. Here the focus is more on relative advantage rather than absolute advantage. It takes into consideration two important factors of related to production. They are labor and capital (ups.edu, n.d.). 2.5 New Trade Theory The i ndustries whose fixed costs are relatively high output are enhanced through specialization. The effects of learning are also quite high. Only few competitors will be supported through the world demand. International trade results in increased income and output for a country. This results in enhanced savings as well. Rise in competition amongst different countries results in gains in trade which are dynamic in nature. 3. Global Financial Crisis (GFC) Global Financial Crisis (GFC) that took place in 2008 proved to be a historical event in world economy. It had a substantial effect on most of the nations in the world. It has led to the debacle of big financial institutions like Lehman Brothers all around the world. It resulted in the decline of share markets all over the world. It all started in United States with the fall of its market involving sub-prime mortgages. Introduction of complex financial instruments has also been one of the prime reasons behind the crisis. Securitization o f mortgage loans in US was done with the objective of mitigating risk but ultimately it led to the increase of risk through increased use of derivatives instruments in the market as speculative instruments and finally resulted in financial crisis. GFC have

Robert Hooke Essay Example | Topics and Well Written Essays - 1500 words

Robert Hooke - Essay Example The simple thought never occurred to the famous philospher that he may need further corroboration to his obsevation before he could state it as a universal fact. The Greeks could see, but their vision was severely limited, there was not much of scope, and there were no scientific instruments. And even that breadth and depth of thinking among men of the ancient Western civilization died out with the advent of religious dogmatism, at which point the dark ages began. But fortunately, though these medieval times of nescience lasted for a long time, they did not last forever. The Greek spirit eventually revived. The glorious age of Renaissance began, men again began to think and look at the world around them with a new clarity. Soon they began to see farther than anyone had before them. Much much farther - through the telescope. They began to see a litte deeper too, and deeper: through a microscope. It was all about vision. And a man of science who lived towards the end of Renaissance, and who most perfectly represented this expanding vision of human mind was Robert Hooke. His advances in material science, astronomy and micrography paved way to the 19th and 20th century science in a significant way. Robert Hooke was the quintessential renaissance man, ever curious, ever exploring, ceaselessly seeking answers, studying, theorizing, inventing, and relentlessly pursuing knowledge in general. Some have called him the greatest experimental scientist of the 17th century. A prolific inventor and designer of scientific instruments besides being a natural philosopher par excellence, Robert Hooke is best known to modern students of physics through Hooke's law of elasticity, and to students of biology as a pioneer of cell theory. However, these aspects reflect but a minor part of Hooke's immense achievement in an astonishingly wide variety of scientific fields - in physics, chemistry, biology, mathematics, astronomy, and geology. He was also in a big way into architecture and naval technology, and in a smaller way into sundry items of scientific interest. But, by far the most interesting, and sadly the most unfortunate, fact about Robert Hooke is that he remained a forgotten genius for a long time even well into the twentieth century. It is thanks to a remarkable biography of Mrs. Margaret Espinasse in the 1950's that students of scientific history have been able to recognize the true scale of Robert Hooke's immense contribution to science. More recent times have seen a spate of important books on Robert Hooke, books such as "Man Who Knew Too Much: The Strange & Inventive Life of Robert Hooke 1635-1703" by Stephen Inwood, "England's Leonardo: Robert Hooke and the Seventeenth-Century Scientific Revolution" by Allan Chapman, "Robert Hooke and the Rebuilding of London" by Michael Cooper, "Robert Hooke: Creative Genius, Scientist, Inventor" by Mary Gow, "The Curious Life of Robert Hooke : The Man Who Measured London" by Lisa Jardine. Most recently, " Robert Hooke: Tercentennial Studies" have also been published. The sheer number of works published on Robert Hooke is an indication clear enough as to the real scope of his scientific caliber. But the big question remains: How