Answer:
As the international division of labor goes deeper and business activities get increasingly globalized, enterprises stand out at the center of the new international trade landscape and the effects of enterprises’ different features on different areas of international trade become a hot subject of study for economists worldwide. Many theories have emerged in the new areas of international trade research, including “new” new trade theories4 represented by trade models with heterogeneous firms and endogenous boundary model of the firm. Moreover, the MNCs theory has introduced the concept of the network. The new classical trade theory underlines the dilemma between the economies of division of labor and transaction costs as well as the half measure of professional decision-making by individuals in reexamining international trade theories. They all have significant influence on the microcosmic research into international trade. Therefore, the latest international trade theories are introduced in this book to enrich the framework of GPN research and help explain the main characteristics of GPNs and how they work on the microlevel and look at how enterprises use global resources and networks to enhance their international competitiveness and share the fruits of globalization in a better way.
Explanation:
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