Free Trade Agreement, comparative advantage and hub effect
| Autor: | Cheng-Ping Chen, 陳正平 |
|---|---|
| Rok vydání: | 2013 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 101 The aim of this paper to construct a theoretical model, and analyze the impact of the interaction between hub effect and comparative advantage of the small open economy. The hubs and spokes are theories about relationship between nations. Hub is a country that allies to multiple areas or countries economical relationships. The allied country is spoke, which is the business partner under the hub branch. According to the hub effect of the new trade theory, a country with a lower trade-cost will become a hub. For a hub, the advantage of its own is not inevitable, free trade needs the removal of all such trade barriers, so it can be able to enjoy the benefits of hub effect. But, for a spoke, the disadvantage of hub effect is inevitable. Even the spokes signs free trade agreement to improve the disadvantage, they are also limited by their degree of liberalization. The comparative advantage brought by technological advantage has a positive effect for companies around the world, and spokes offset by technical superiority from the hub effect is practicable. In other words, with high technical advantage, comes great influence. And technical advantage offset negative impact of hub effect is greater, the spokes are more likely to reverse the hub effect by technical advantage. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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