International Business

International Business (Name (University (Course (Tutor (Date

Table of Contents

TOC \o "1-3 " \u Table of Contents PAGEREF _Toc1 \h 2

1 .0 Part 1 PAGEREF _Toc2 \h 3

1 .1 Relation between International Trade and World Output PAGEREF _Toc3 \h 3

1 .2 Broad Pattern of International Trade PAGEREF _Toc4 \h 3

1 .3 Oil in the U .S PAGEREF _Toc5 \h 4

1 .4 Citrus Fruits in China PAGEREF _Toc6 \h 4

2 .0 Part 2 PAGEREF _Toc7 \h 5

2 .1 Benefits of Market and Mixed Economies

PAGEREF _Toc8 \h 5

2 .2 Drawbacks of Market and Mixed Economies PAGEREF _Toc9 \h 5

References PAGEREF _Toc0 \h 7

Part 1

Relation between International Trade and World Output

The globalization process is accelerating through the growth rates identified in world output and international trade levels . World output and international trade have a close relationship with the volume of trade growing at a faster rate than the volume of the world output (OECD , 1999 . The volume of output in the world influences the level of international trade taking place between countries . However a major cause for the increased output is the rapid growth of international trade (Grimwade , 2000 . Increased levels of world trade lead countries to specialize and hence increase their output levels . Once countries increase their degrees of specialization they increase international trade levels even when there is no increase in world output

Broad Pattern of International Trade

Dynamic models of trade have been emerging over the years...