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% Document Info
\author{Natalie Moore (NatalieMoore)}
\pdfinfo{
  /Title (specialisation.pdf)
  /Creator (Cheatography)
  /Author (Natalie Moore (NatalieMoore))
  /Subject (Specialisation Cheat Sheet)
}

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        \hspace*{-6pt}\includegraphics[width=5.8cm]{/web/www.cheatography.com/public/images/cheatography_logo.pdf}}
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    \vspace{-2pt}\large{\bf{\textcolor{DarkBackground}{\textrm{Specialisation Cheat Sheet}}}} \\
    \normalsize{by \textcolor{DarkBackground}{Natalie Moore (NatalieMoore)} via \textcolor{DarkBackground}{\uline{cheatography.com/19119/cs/2202/}}}
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  \mymulticolumn{2}{p{5.377cm}}{\bf\textcolor{white}{Cheatographer}}  \\
  \vspace{-2pt}Natalie Moore (NatalieMoore) \\
  \uline{cheatography.com/nataliemoore} \\
        \uline{\seqsplit{www}.jchmedia.com/}
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  \mymulticolumn{1}{p{5.377cm}}{\bf\textcolor{white}{Cheat Sheet}}  \\
   \vspace{-2pt}Published 8th June, 2014.\\
   Updated 11th May, 2016.\\
   Page {\thepage} of \pageref{LastPage}.
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  %\includegraphics[width=48px,height=48px]{dave.jpeg}
  Measure your website readability!\\
  www.readability-score.com
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\begin{multicols*}{3}

\begin{tabularx}{5.377cm}{X}
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\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Theory of absolute advantage}}  \tn
% Row 0
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\mymulticolumn{1}{x{5.377cm}}{Countries can produce some goods more effectively and efficently than others.} \tn 
% Row Count 2 (+ 2)
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\begin{tabularx}{5.377cm}{X}
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\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Theory of comparative advantage}}  \tn
% Row 0
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\mymulticolumn{1}{x{5.377cm}}{Free trade can increase global output even if one country has an absolute advantage in the production of all products} \tn 
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\end{tabularx}
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\begin{tabularx}{5.377cm}{x{1.00694 cm} x{1.78503 cm} x{1.78503 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{3}{x{5.377cm}}{\bf\textcolor{white}{Trade pattern theories}}  \tn
% Row 0
\SetRowColor{LightBackground}
Theory of country size & Large depend on export less than small. Large = varied climates and more resources, so more self sufficent. & Russia, USA, Brazil, India, China are large \tn 
% Row Count 8 (+ 8)
% Row 1
\SetRowColor{white}
Size of economy & Developed countries more likely to trade. Top 10 \seqsplit{export/importers} developed countries. Developed economies produce more so have more to trade, incomes are high so people buy more. &  \tn 
% Row Count 20 (+ 12)
\hhline{>{\arrayrulecolor{DarkBackground}}---}
\end{tabularx}
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\begin{tabularx}{5.377cm}{x{2.4885 cm} x{2.4885 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{5.377cm}}{\bf\textcolor{white}{With whom trade theories}}  \tn
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\SetRowColor{LightBackground}
Country-Similarity theory & Developed trade mostly with eachother because they - produce and consume more, create new products to compete, produce differentiated products and services \tn 
% Row Count 8 (+ 8)
% Row 1
\SetRowColor{white}
Specialisation and aquired advantage & Provide other countires an advantage over domestic producers. Specialise to grain advantage, eg Germany = machinery \& equip \tn 
% Row Count 15 (+ 7)
% Row 2
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\mymulticolumn{2}{x{5.377cm}}{Product differntiation} \tn 
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Cultural similarity & Importers and expoerters find it easier to trade with countries they are similar to in language and or culture \tn 
% Row Count 22 (+ 6)
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Political relationships / economic agreements & May discourage or encourage trade \tn 
% Row Count 25 (+ 3)
% Row 5
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Overcoming distance & Transport costs \tn 
% Row Count 26 (+ 1)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
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\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{International PLC Theory}}  \tn
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\begin{tabularx}{5.377cm}{x{2.14011 cm} x{2.83689 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{5.377cm}}{\bf\textcolor{white}{Specialisation assumptions (valid?)}}  \tn
% Row 0
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Full employment & Everyone who wants a job has one \tn 
% Row Count 2 (+ 2)
% Row 1
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Economic efficiency & Minimisation of real and opportunitiy costs of production by exploiting comparative advantages rather than nessessarily absolute advantages \tn 
% Row Count 9 (+ 7)
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Division of gains & Ops for gains: resource owners benefit by sale of one output for other, more highly valued goods. \tn 
% Row Count 14 (+ 5)
% Row 3
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Two countries, two commodities & Simplified version of reality \tn 
% Row Count 16 (+ 2)
% Row 4
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Transport costs & Reduce the benefits of specialization \tn 
% Row Count 18 (+ 2)
% Row 5
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Statics and dynamics & Relative conditions in a country change \tn 
% Row Count 20 (+ 2)
% Row 6
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Production networks & bits of products made in different countries \tn 
% Row Count 22 (+ 2)
% Row 7
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Mobility & Assume resources can move domestically to where they are needed. Not always valid. \tn 
% Row Count 26 (+ 4)
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\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{5.377cm}}{\bf\textcolor{white}{Free trade results in}}  \tn
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Specialisation - natural advantage & Soil, natural resources, fish in seas, minerals, wildlife, rainforests \tn 
% Row Count 4 (+ 4)
% Row 1
\SetRowColor{white}
Specialisation - aquired advantage & Product or process technology \tn 
% Row Count 6 (+ 2)
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\mymulticolumn{2}{x{5.377cm}}{Increased efficency} \tn 
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\mymulticolumn{2}{x{5.377cm}}{Increased global output} \tn 
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\mymulticolumn{2}{x{5.377cm}}{\bf\textcolor{white}{What type of products are traded}}  \tn
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People and land & Countries with high people to land ratio trade labor with wheat and wool for example \tn 
% Row Count 5 (+ 5)
% Row 1
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Manufacturing locations & Places which need lots of room manufacture inplaces where there is a lot of room. \tn 
% Row Count 10 (+ 5)
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Capital, labor rates and specialisation & Production factors are not homogenous, vary within and among countries coz of training/edu differences \tn 
% Row Count 16 (+ 6)
% Row 3
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Process tech (FP theory results varied) & Companies may substitute capital for labour, depending on the cpst of each. \tn 
% Row Count 20 (+ 4)
% Row 4
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Product tech & New products req \$\$\$ in R \& D so most come from developed countries \tn 
% Row Count 24 (+ 4)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{5.377cm}}{According to the factor proportions (FP) theory - factors in abundance are cheaper than factors in scarcity. Assumes homogenity in countries.}  \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}--}
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\begin{tabularx}{5.377cm}{X}
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\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Production possibilities curve}}  \tn
% Row 0
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\mymulticolumn{1}{x{5.377cm}}{Graphical representation of alt combinations of goods and services an economy can produce.} \tn 
% Row Count 2 (+ 2)
% Row 1
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\mymulticolumn{1}{x{5.377cm}}{An economy's factors of production are scarce; they cannot produce an unlimited quantity of goods and services.} \tn 
% Row Count 5 (+ 3)
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\end{tabularx}
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\begin{tabularx}{5.377cm}{x{1.89126 cm} x{3.08574 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{5.377cm}}{\bf\textcolor{white}{Importing and exporting probs}}  \tn
% Row 0
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Financial risks & Most SMEs site 'shortage of working capital to finance export' as big barrier. Offers low profitability in light of unexpected costs and unknown financial constraints \tn 
% Row Count 7 (+ 7)
% Row 1
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Customer management & With high speed connections customers want immediate answers. \tn 
% Row Count 10 (+ 3)
% Row 2
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Scant IB expertise & Difficulties of understanding foreign business practices. Limited knowledge of competitors, unfamiliarity with lcoal customs etc \tn 
% Row Count 16 (+ 6)
% Row 3
\SetRowColor{white}
Marketing barriers & High shipping costs / logistic demands, difficulty price matching \& promoting. Discouraging for exporters. \tn 
% Row Count 21 (+ 5)
% Row 4
\SetRowColor{LightBackground}
Top management commitment & International outlook and risk orientation. Most focus on domestic rather than foreign. Exporting and importing places tough demands on mgmt. Firms with agarness and surplus resources to trade internationally are rare. \tn 
% Row Count 31 (+ 10)
\end{tabularx}
\par\addvspace{1.3em}

\vfill
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\begin{tabularx}{5.377cm}{x{1.89126 cm} x{3.08574 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{5.377cm}}{\bf\textcolor{white}{Importing and exporting probs (cont)}}  \tn
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Trade regulation & Inefficencies due to delays, documents and admin fees. Regulations differ from one country to the next.Homeland security also can be a problem. \tn 
% Row Count 6 (+ 6)
% Row 6
\SetRowColor{white}
Trade documentation & Lots of it. Including: duty rates, customs clearance and entry processes. Values declarations, dute management,. Mistakes spawn costs and it can get \$\$\$ to manage \tn 
% Row Count 13 (+ 7)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
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\mymulticolumn{2}{x{5.377cm}}{\bf\textcolor{white}{Why import?}}  \tn
% Row 0
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\mymulticolumn{2}{x{5.377cm}}{Specialisation of labour} \tn 
% Row Count 1 (+ 1)
% Row 1
\SetRowColor{white}
\mymulticolumn{2}{x{5.377cm}}{Global rivalry} \tn 
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\mymulticolumn{2}{x{5.377cm}}{Local unavailablity} \tn 
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\mymulticolumn{2}{x{5.377cm}}{Diversification} \tn 
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\mymulticolumn{2}{x{5.377cm}}{Top managements outlook} \tn 
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\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}


% That's all folks
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