Question

Using the framework in Table 6.1, explain which of the theories relate to Taiwan’s trade policy during each of the eras described in the case.

Table 6.1 What Major Trade Theories Do and Don't Discuss: A Checklist A check mark indicates that a theory of trade concerns itself with the question asked at the head of the column; if there's a dash, it doesn't. In the last four columns, you can see how each theory responds to the specific question; again, a dash indicates that the theory does not address the question Description of Natural Trade Prescription of Trade Relationships With Whom Should Trade Take Place? Should What What With Whom Government How Much Products How Much Products Does Trade Control Is Traded? Are Traded? Take Place? Trade? Should Be Traded? Should Be Traded? Theories Interventionist&free trade Mercantilism Neomercantilism Absolute advantage Comparative advantage National trade patterns Country size Factor proportions Country similarity Export dynamics Product life cycle (PLC) Diamond of national yes yes no no competitive advantage

A check mark indicates that a theory of trade concerns itself with the question asked at the head of the column; if there’s a dash, it doesn’t. In the last four columns, you can see how each theory responds to the specific question; again, a dash indicates that the theory does not address the question.

Answer 1

Answer: