Foreign Trade and Exchange - International Business Essay

Foreign Trade and Exchange - International Business - Essay Example The international foreign trade and exchange has developed to constitute free trade policies, guided by reduction of tariffs and quotas in trade and exchange transactions (Justin 425). In other words, the contribution and evolution of the concepts of Mercantilism, Adam Smith, and Ricardo among others have shaped international business today. Apple, Inc. is primary competitive firm globally. It enjoys an absolute advantage in creating product quality and pricing policies that capture the interests of the market in both domestic and global contexts. This follows the idea that Apple manufactures its products at a competitive low production cost relative to rival firms in the industry. Apple’s comparative advantage emanates from its collaboration with other firms like Google in offering its products and services. In other words, Apple understands that it cannot be self-sufficient in business, thus collaborating with other firms in business terms. Comparative advantage in this regard is more important due to the complementarity it provides, through trade and exchange as opposed to being at an advantage that is based on operational costs off trade and exchange in the market (Justin