7.1 Learning Outcomes:

&;&;&;&;&;&;&; Understand why nations trade with each other. &;&;&;&;&;&;&; Summarize the different theories explaining trade flows between nations. &;&;&;&;&;&;&; Recognize why many economists believe that unrestricted free trade between nations will raise the economic welfare of countries that participate in a free trade system. &;&;&;&;&;&;&; Explain the arguments of those who maintain that government can play a proactive role in promoting national competitive advantage in certain industries. &;&;&;&;&;&;&; Understand the important implications that international trade theory holds for management practice.

7.2 Action Required:

The purpose of this interactive activity is to demonstrate your understanding of the concepts learned lessons by responding to discussion questions.

7.3 Test your Knowledge (Question):

Critically discuss Heckscher-Ohlin Theory of International trade.

7.3 Instructions:

Students are to answer the given question in Discussion Board.