Here is the synopsis of our sample research paper on INTERNATIONAL TRADE AND COMPARATIVE ADVANTAGE. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 3-page paper examines issues pertaining to international trade and comparative advantage. Bibliography lists 3 sources.
Page Count:
3 pages (~225 words per page)
File: D0_MTinttraad.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
why multinational corporations are willing to pay higher prices for the initial advantage. Before continuing, it would be helpful to redefine the
concept of comparative advantage and international trade. The idea behind this is if one country can produce a set of goods at a lower cost than another country, and the
other country can produce goods at a lower cost than the first country, its better for each country to produce those goods -- then trade them to the other (Suranovic,
2008). U.S. tobacco companies create strong incentives for local farmers in developing countries to grow tobacco instead of crops used for domestic food production by offering underwritten loans,
subsidies for startup costs, and a guaranteed demand for their tobacco crops. Why the U.S. would subsidize the short-run costs of production for tobacco farmers in foreign countries? Do
these practices guarantee the tobacco farmers a profit in the short run or long run? While there isnt a whole lot of
literature about tobacco farmers in poorer nations and subsidies from multinational corporations, one of the best examples of a multinational company subsidizing growers in lower-income countries is that of Starbucks.
Understanding that coffee needs a particular climate in which to grow and flourish, Starbucks sought out poor coffee growers in Chiapas,
Mexico, to begin growing specific beans the "Starbucks" way. In exchange for becoming a Starbucks supplier, the Mexican coffee growers (and later on, the Brazilian, Italian and other coffee growers),
agreed to be subsidized and trained by Starbucks. What this creates is a known supply -- Starbucks knows it will have the same quality coffee bean, and can advertise the
...