09/07/23

Building firm value requires:

- Financial stability
- Access to goods and services
- Good management
- Capital (personal expense/ investors)
1. Open marketplace
2. Strategic management
3. Acess to capital

Level III- Mature economies

Level II- Rapidly developing countries
Level I- Emerging market countries

Pros of international trade:

1. Limited access to the good itself
2. Goods are cheaper

Pros- specialization, lower costs, wanting access to goods and services, competition (better for
consumers)

Cons- economic dependency on other markets, different regulations, accountability, some industries
shrink- implications

The theory of comparative advantage

- The theory of comparative advantage provides a basis of explaining and justifying
international trade in a model assumed to benefit from:
1. Free trade
2. Perfect competition
3. No uncertainty
4. Costless information
5. No government interference