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is preset and trade superfluous or shortfalls are a zero-sum game where a trading nation must win at the other nations cost. Smith disputes that the world's wealth is not permanent because when countries connect in international trade, global output augments. This happens because each country does what they do mainly well and pass on the gains from this competence to all trading nations. (Cullen, 2010).

Therefore, a nation possesses absolute advantage in the production of a good when it takes less units of labour to produce the good than another nation. According to Smith, for the globe to do good from absolute advantages, a nation should fabricate goods for which it possess absolute advantage and trade in those goods in which it has absolute disadvantage. (Cullen, 2010)

Complementing this, (Mmieh, 2010) mentions that a nation is supposed to have absolute advantage in the fabrication of given commodity when it is more proficient than another nation. Moreover, it means that country A can fabricate more of an exacting commodity with a given quantity of supply that the country B.

Comparative Advantage 比较优势
Within every meticulous country, the companies do some things better than they do other things. That means, a country may be twofold as good at manufacturing electronics as it is at growing vegetables. Another country may be superior at growing vegetables than at manufacturing electronics. The rule of comparative advantage explains how these virtual disparities amongst nations can pilot to advantageous trade between nations (Cullen, 2010).

The General Agreement on Tariffs and Trade (GATT)
(Howse, 1999) defines the prelude of GATT perpetrates member nations to penetrate into shared and equally beneficial arrangements focussed to the considerable diminution of tariffs and other obstacles to trade and to the exclusion of prejudiced treatment within global commerce.

The Heckscher-Ohlin theory
(HO) disputes that a country's comparative advantage emerges from the relative profusion of its factor bequests. Factor endowments are belongings that an organization makes use of to fabricate their products or services. There are two fundamental types of factor endowments. One of them is, where in trade theory refers to efforts that go into building a product or delivering a service, such as ground, energy, machines, buildings, or tools etc. The other factor is labour. Not all countries have equivalent factor endowments. For example, the US has plentiful provisions of natural resources such as land and energy. On the contrary, Japan has imperfect factor endowments in land and natural resources, namely coal. (Cullen, 2010).

International Business 国际商务
International business has been divided into two major branches which are namely international trade and international equities. Further down these two branches have been explained in details so as to have a better overview.

International Trade 国际贸易
International trade is one country permits other countries to swap goods and services with the exercise of money as an intermediate of exchange. In order to study international trade further, some advantages and disadvantages have been drawn further (Anonymous, 2010).

Advantages 优势
Superior choices of products are available for consumption - global trade brings in diverse varieties of a exacting produ