Absolute Advantage：the greater efficiency that one nation may have over another in the production of a commodity.
Comparative Advantage:乌姜A country has a comparative advantage in producing a goods if the opportunity cost of producing that goods in terms of other goods is lower in that country than it is in other countries.
The terms of trade is the relative price at which two countries trade goods. Terms of trade =export price index/ import price index
Small Country Effect
If a small nation trade with a very large nation according to its comparative advantage, the small nation can achieve complete labor specialization in production, and the large nation can not. The terms of trade must be the relative price of the large nation in autarky. Becau the small nation is very small, it can’t affect the supply and demand for any product of the large nation. As such, the small nation gets all the gains from trade and the large nation gets no gains from trade.
Distribution of the gains from trade
Export-prompting measuresExport subsidies(出口补贴）Export credit (出口信贷）
半斤八两的意思Export Credit Guarantee System（出口信贷担保）Foreign exchange dumping (外汇倾销）
Free trade areas
Assignment mechanisms of import quotas
车定位public auction-system 公开拍卖
constant preference-system 固定的受惠
application-procedure system 使用申请程序
Export subsidies and its’ economic effectThe implication of export subsidesA quota is a direct quantitative restriction on the amount of a commodity allowed to be imported or exported (in the form of voluntary export restraints). 形容日出的词语
As tariffs were negotiated down during the postwar period, then import quotas have been widely ud by developed nations to protect their agriculture and by developing nations to stimulate import substitution of manufactured products and for balance-of-payments reasons.
Other non-tariff barriers Industrial policy ,Government procurement Dumping and anti-dumping
Technical barriers to tradeLabor and environmental standards场景描写的作用,Transportation costs and trade
The Theory of Protective Trade 1.Merchantilism 2. The optimum tariff theory
3.The infant industry argument 4. Keynes’ protective trade theory
5. Strategic trade policy 6. The political economy of protectionism
幼稚产业论a national economy can be divided into five stages. In an early stage of industrialization required tariff protection to stimulate development.
Infant industries are tho that are not strong enough to survive open competition and have the growth potential. How toJudge。。
1.Mill’s test (穆勒标准）2.Bastable’s test（巴斯塔布尔标准）3.Kemp’s test (坎普标准）
Main ideas of Keynes’ theory:There is deficiency of the domestic effective demand in free trade. So in open economy, the government should encourage export and limit import.
While this theory realized that the surplus can’t increa without limitation.
Post-Keynes’ multiplier theory
Strategic trade policy is bad on the incomplete competitive market, especially in the oligopoly market.The government should protect domestic industries by using the export subsides or import protection to change the market structure and gain the international competition.
The political economy of protectionism Given that a country as a whole gains from trade, one would expect free trade to dominate most countries’ international trade policy. While the fact is not so.The interaction between the gains from trade for the country and the gains from trade barriers for producers explains the existence of trade barriers.
Protectionism and public choiceEconomists have developed the theory of public choice to describe political behavior.The premi underlying the theory of public choice is that politicians, like all individuals, attempt to maximize their utility. In most cas, utility maximization for a politician means maximizing the number of votes he or she will receive in the next election.This implies the politicians tend to favor programs having immediate and clear-cut benefits combined with vague, difficult to measure, or deferred costs.中国陆军军衔
读书的图片大全Introduction to regional economic arrangementsRegional economic integration refers to agreements between countries to reduce tariff and non-tariff barriers to the free flow of goods, rvices, and factors of production between each other.
Regional trade agreements are trade agreements between two or more countries that reduce trade barriers only for tho countries that are members of the agreements
Trade creation effects: Trade creation occurs when some domestic production in a nation is replaced by lower-cost imports from another member nation after the establishment of a customs union. This is a positive effect and can increa the welfare of member nations as a whole, becau it leads to greater specialization in production bad on comparative advantage.
Trade diversion effect: Trade diversion occurs when lower-cost producers from outside the customs union are replaced by higher-cost producers from a union member after the establishment of a customs union becau of the preferential trade treatment given to member nations. This is a negative effect and may reduce the welfare of the customs union as a whole, becau it shifts production from more efficient producers outside the customs union to less efficient producers inside the customs union.
