) Globalization is a trend joining countries economically, through education, society and politics. Globalization brings people off all nations closer together. Two factors that drive globalization is the free flow of goods, services and capital. The second factor is the changes that occur in technology, for example, communication information processing and transportation technologies.
According to Maritta Daddio, in an article titled, “International Competitiveness and Technological Innovations Changing How Universities Conduct R&D, she states, “Many traditional theories examine pricing and competition policies as dominant factors for trade and competitiveness. Models such as the Ricardian and Heckscher-Ohlin evaluate variables such as trade flows from comparative advantages or export / import biased growth due to factors such as abundance of capital and scarcity of land. This paper will focus on the variable of innovation on international competitiveness.”
Absolute advantage is trading partners are able to produce goods or services at a low cost per unit, Zambia has an absolute advantage in producing copper. Zambia produces copper and exports it to several countries that utilize the products or other services,
A producer (person or country) that has the smaller opportunity cost of producing a good. For example, and exchange of goods. Florida’s oranges are produced at a low cost, unlike Iowa’s increasing production of corn. Florida sells oranges at a lower cost than Iowa. Both states are able to share gains by exchanging to comparative advantage from trading fruits and vegetablesDaddio,M, (Dec 9,2004) International Competitiveness and Technological Innovations Changing How Universities Conduct R &D. Retrieved December 18, 2008 from http://www.rh.edu/~stodder/BE/UniversitiesExportRegs.htm