skin beautyCHAPTER 1
*(Core Chapter)
INTRODUCTIONcharged
OUTLINE
1.1 Importance of International Economics
Ca Study 1-1: The Dell and Other PCs Sold in the United States Are All But American
Ca Study 1-2: What Is an "American" Car?
1.2 International Trade and The Nation's Standard of Living
Ca Study 1-3: Rising Importance of International Trade to the United States
1.3 The Major U.S. Trade Partners: The Gravity Model
this is怎么读1.4 The Subject Matter of International Economics
1.5 Purpo of International Economic Theories and Policies
1.6 Current International Economic Challenges
1.7 The Globalization Challenge
1.8 Organization and Methodology of the Book
Appendix: A1.1 Basic International Trade Data
A1.2 Sources of Additional International Data and Information
Key Terms
Interdependence Adjustment in the balance of payments
Gravity model Microeconomics
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International trade theory Macroeconomics
International trade policy Open economy macroeconomics
New protectionism International finance
Foreign exchange markets Globalization
Balance of payments Anti-globalization movement
Lecture Guide
1. As the first chapter of the book, the general aim here is simply to define the field of study of international economics and its importance in today's interdependent world.
The material in this chapter can be covered in two class. I would utilize one class to cover Sections 1 to 4 and the cond class to cover Sections 5 to 8. I would spend most of the cond class on Section 6 on the major current international economic challenges facing the United States and the world today and to show how international
economics can suggest ways to solve them. This should greatly enhance students' motivation.
Answer to Problems
1. a) International economic problems reported in our daily newspapers are likely to include:
∙trade controversies between the United States, Europe, Japan, and China;
∙great volatility of exchange rates;
∙Increasing international competition from China and fear of job loss in the United States and other advanced countries.
∙structural unemployment and slow growth in Europe, and stagnation in Japan;
∙financial cris in emerging market economies;
∙restructuring problems of transition economies;
∙deep poverty in many developing nations in the world.
b) Can result in trade restrictions or even a trade war, which reduce the volume and the gains from trade;
∙discourage foreign trade and investments, and thus reduce the benefits from trade;
∙Can result in trade restrictions or even a trade war, which reduce the volume and the gains from trade;
∙reduces European and Japane imports and the volume and the benefits from trade;
astray∙financial cris in emerging market economies could spread to the United States;
∙can lead to political instability, which will adverly affect the United States;dashboard
∙can lead to political instability in the countries - which also adverly affect the United States.
c) Can result in your paying higher prices for imported products;
∙lead to great fluctuations in the price of imported products and cost of foreign travel;
∙Can lead higher prices for imported products and increas the chances that you will have to change jobs;
∙can lead you to support demands for trade protection in the United States;老爸老妈浪漫史第二季
∙can reduce the value of your investments (such as a stocks) in the United States;
∙can lead to your paying higher taxes for the United States to respond to the threats;
∙can result in your paying higher taxes to help the nations.
2. a) Five industrial nations not mentioned are: Italy, France, Canada, Austria, and Ireland.
b) See Table 1A.
c) Smaller nations, such as Ireland and Austria, are more interdependent than the larger ones. Note that interdependence was measured by the percentage of the value of imports and exports (line 98c and 90c, respectively in IFS) to GDP (line 99b).
Table 1A |
prcEconomic Interdependence as Measured by Imports and Exports as a Percentage of GDP, 2004 |
Nation | Imports as a percent of GDP | Exports as a percent of GDP |
Italy | 25.8 | 26.6 |
France武汉理工大学网络教育学院 | 25.7 | cosplay什么意思25.9 |
Canada | 34 | 38.2 |
Austria | 46.1 | 51 |
Ireland | 63.7 | 79 |
| | |
*Source: International Financial Statistics
(Washington, D.C., IMF, March 2006).
3. a) Five developing nations not mentioned in the text are: Brazil, Pakistan, Colombia, Nepal, and Tunisia.
