A global company is a company that markets a standardized product worldwide and allows only minimum adaptations to local conditions and tastes from country to country. Its financial, marketing and advertising strategies are global with little differentiation among countries or areas as to product. A multidomestic company is an organization with multi-country affiliates, each o which formulates its own business strategy based on perceived market differences. Both global and multidomestic companies are considered to be international companies. Ricardo’s theory of comparative advantage states that unless a country has the same absolute advantage in producing all goods and services, there would be some goods and services in which it had less relative advantage. It would gain by importing those and exporting the ones in which it had an absolute advantage or the greatest relative advantage. Smith’s theory of absolute advantage is the one that is most enjoyed by a country because it can produce a product at a lower cost than it can other countries. Smith claimed that market forces, not government controls, should determine the direction, volume and composition of international trade. Heckscher-Ohlin’s factor endowment theory states that a country is or is not endowed with one or more of the factors of production, capital, labor, and natural resources. This relates to Ricardo and Smith’s theories in that they all state how it is very important to import and export. The country I am researching is France. I believe that it follows the trade theories of both Ricardo and Smith. France’s trade pattern falls in the category of the theory of absolute advantage and the theory of comparative advantage. Adam Smith claims that market forces rather than governmentt controls should determine the reaction, volume and composition of international trade. Each nation should specialize