1、1,International Trade Theories,International Economics By Mordecai E. Kreinin, 9th Edition,2,Chapter 1,Introduction to World Trade,3,OVERVIEW,International Trade, Defined What is Unique about International Trade? International TransactionsAn Empirical Glimpse Foreign Trade in the National Economy Fo
2、rums for Trade and Monetary Issues,4,Important Concepts,Specialization Exchange rate Export subsidy Tariff Import quota Voluntary export restraint,Relatively closed economy Nontraded goods Export industries Import-competing industries Exchange control,5,6,Whats Unique About International Trade?,Spec
3、ialization Exchange Rates Commercial Policies Tariff Import quota Voluntary export restraint VER Export subsidy Exchange control Different Domestic Policies Statistical Data Relative Immobility of Productive Factors Marketing Considerations,7,International TransactionsEmpirical Glimpse,Uninterrupted
4、 trade expansion, 1958 1999 ($108 billion to $5.6 trillion) Manufactured products showed greatest increase; service transactions also rising ($1.35 trillion in 1999) U.S., Germany, Japan, largest exporters; one-third world trade among European countries Real volume of trade accounts for price increa
5、ses; increase in private capital flows Globalizationglobal marketplace for most goods and services Political shifts toward market economies raising development status of many countries.,8,Foreign Trade in the National Economy,Aggregate Measures U.S. GDP comprises over global output, U.S. leading tra
6、ding nation Relatively closed economy, not reliant upon foreign trade Disaggregation Nontraded goods Export- and import-competing industries Qualitative Considerations,9,Forums for Trade Issues,World Trade Organization (WTO) The European Union (EU) Group of Ten (G-10) United Nations Conference on tr
7、ade and Development (UNCTAD) Organization of Economic Cooperation and Development (OCED),10,Summary,International trade concerns movement of goods and servicesacross national boundaries. Conduct of trade, rather than reasons or benefits, distinguish international from domestic transactions. International transactions have grown faster than global output. Though U.S. engages in smaller share of foreign trade, it plays a significant role in certain industries.,
