states that country should grow its reserves of gold and silver by encouraging exports and discouraging imports.

Adam Smith’s theory of absolute advantage appeared in his major work Wealth of Nations in 1776.

focuses on the concept that country should produce an item that it can manufacture more proficiently than other countries.

David Ricardo's most important legacy is the Comparative Advantage Theory written on his book entitled "The Principles of Political Economy and Taxation written in 1817."

says that business can take place even if one nation has an advantage in making both items.

The H-O model was originally developed in the 1920s by two Swedish economists, Eli Heckscher and his student Bertil Ohlin, who received the Nobel Prize in Economics in 1977.

says that countries will export products that use their abundant and cheap factor of production and import products that use the countries' scarce factor.

Country similarity theory was developed by a Swedish economist named Steffan Linder.

states that people n countries that are in the same level of development have similar preferences.

Raymond Vernon, 1966.

states that there are three stages in every product life cycle - new product, maturing product, and standardized product.

Global strategic rivalry theory emerged in the 1980s and was based on the work of economists Paul Krugman and Kelvin Lancaster.

focuses on how companies can get competitive advantage when competing against global firms in same industry.

Michael Porter’s diamond of national advantage as a contemporary trade theory was developed in the late 1980s.

says that competitiveness business segment depends on innovative items, processes, etc.