International trade Theory and policy School of Economics, Yunnan University Zhang Jianhua and zhang Lin
International Trade Theory and Policy School of Economics, Yunnan University Zhang Jianhua and Zhang Lin
Chap 1 Introduction One, Course Outline Basic theory in Economics(Analysis of commodity and factor mobility in open Macro economy by tools Microeconomics Contents: 1. Pure Theory in International Trade( reason and Influence of International Trade) 2. Policy of International Trade Policies aiming at limiting imports while encouraging exports 3. Institutions for International Trade (wto Institutions
Chap. 1 Introduction ◼ One. Course Outline ◼ Basic theory in Economics ( Analysis of commodity and factor mobility in open Macro economy by tools Microeconomics ◼ Contents: 1. Pure Theory in International Trade ( Reason and Influence of International Trade) 2. Policy of International Trade （Policies aiming at limiting imports while encouraging exports） 3. Institutions for International Trade（WTO Institutions ）
Two Basic Concepts balance of trade 1. Trade Surplus(Exports>ImpOrte Favorahle Balancaof Trade) 2004、2005年 2. Trade Deficit( Exports< Imports中国的贸易收支 of Trade) 3. Trade Balance (Exports= Imports) Trade structure 2005年中国主要进出口商品 1. Commodity Structure 2. Geographical Structure Dependency of frade 2004年中国对外贸易依存度 接近70%
Two Basic Concepts ◼ balance of trade 1. Trade Surplus（Exports＞Imports，Favorable Balance of Trade） 2. Trade Deficit （Exports＜Imports，Unfavorable Balance of Trade） 3. Trade Balance （Exports ＝ Imports） ◼ Trade Structure 1. Commodity Structure 2. Geographical Structure ◼ Dependency of Trade 2004、2005年 中国的贸易收支 2004年中国对外贸易依存度 接近70% 2005年中国主要进出口商品
Chap 3 Comparative Cost and Classical Trade Theorem In this chapter, we introduce theorem of international trade We start such introduction looking at causes of international trade and its influences in the economy( in Chap 3, 4, 5 and 6), then we will analyze the influences of economics in trade One, Theory of Absolute Cost Theory of absolute cost It is a theoretical explanation to the cause of international trade Introduced by Adam Smith in his " Wealth of Nations
Chap. 3 Comparative Cost and Classical Trade Theorem ◼ In this chapter, we introduce theorem of international trade. We start such introduction looking at causes of international trade and its influences in the economy ( in Chap 3, 4, 5 and 6), then we will analyze the influences of economics in trade. One, Theory of Absolute Cost Theory of absolute cost It is a theoretical explanation to the cause of international trade Introduced by Adam Smith in his “ Wealth of Nations
Graph of absolute Cost Unit Cost Calculated in terms of labor UK Portugal Carpet 4 6 Wine 3 Each country produces Trade based goods absolutely low in Could on division cost, in exchange for countries Of abor have other countries goods trade absolutely low in cost without absolute Reason of trade is because of difference differences in absolute cost in cost?
Graph of Absolute Cost Unit Cost Calculated in terms of labor UK Portugal Carpet Wine 4 8 6 3 Each country produces goods absolutely low in cost, in exchange for other countries’ goods absolutely low in cost Trade based on division o f l a b o r Reason of trade is because of differences in absolute cost Could countries have trade without absolute difference s in cost?