Reported 8 months ago
On June 19, 2024, Dr. Dan Ji, Honorary Professor at National Central University and Member of the Asia Pacific Industry Analysis Professional Advancement Association (APIAA), discussed the significance of the Comparative Advantage theory and the Heckscher-Ohlin (H-O) model in international trade. However, the impact of technological advancement on production efficiency and capacity, through product and process innovation, challenges the traditional H-O model. The concept of creative destruction by Joseph Schumpeter explains how innovations like NVIDIA's GPUs can revolutionize markets. Markets are constantly reshaped by disruptive innovations, exemplified by the rise of electric vehicles from China in the automotive industry, amid high tariff barriers among nations. Whether the Overcapacity theory can withstand the winds of disruptive innovation forecasts the future of international trade dynamics.
Source: YAHOO