Economics 2: The World Economy
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红河漂流
Content
Introduction----------------------------------------------------------------3
Section 1: International Trade
Three gains from trading internationally---------------------------------------3
Free Trade--------------------------------------------------------------------------3
Absolute and Comparative Advantage-----------------------------------------3
Protectionism----------------------------------------------------------------------4
Barriers to trade-------------------------------------------------------------------4
WTO and EU----------------------------------------------------------------------5
Section 2: International Finance
Balance of Payments and General trends in UK Trade----------------------6
Relationship between the exchange rate and the balance of payments—14防身术
Single Currency------------------------------------------------------------------15
Effects on individuals and business of the Euro-----------------------------15
Section 3: Less Developed Countries (LDCs)
Characteristics of a LDC--------------------------------------------------------16
Current issues that face LDCs--------------------------------------------------16
The impacts of multinationals on LDCs and NICs--------------------------16
Conclusion-----------------------------------------------------------------16
References------------------------------------------------------------------17
Introduction:
As a member of the government of nation on the periphery of Europe, it is my obligation to illustrate the benefits of joining the EU to the Premier. In this report, I will analyze 15elements in next three parts to make a clear explanation of benefits of joining the EU.
Section 1: International Trade
Three gains from trading internationally:
To begin with, the international trade could increa world out-put. The tendency of globalization brings the firms more opportunities to gain the labor, resources, contracts and new technology. The supply and demand will be improved with the improvement of company如厕文明’s productivity.
Once the supply has been improved, the goods and rvices were produced at lower cost and there are more and more competitions, the price of the product might fall which means consumers could get more choices and cheaper goods.
In addition, the most important gaining of international trade is it can generate economic growth. Free trade could increa sales, profit margins, and market shares and the both demand and supply level has updated. Meanwhile, the producer needs more resources, labor and capital to produce more to satisfy the global market. 哺乳期十大禁忌水果It direct result in improving the material market, finance market, and may decline the unemployment rate.
感慨什么意思Free trade
Free trade is a concept that there is no barrier to goods and rvices exchanged between countries. Since 山东省科技馆different countries have different terrain, weather, resources and technology, the international trade would bring the goods which are more valuable than the local people produce it by themlves.
A good example for free trade is in Nov.18, 2004, Chine President and Chilean President declared the start of the FTA negotiations. According to the agreement, the two countries would start tariff reduction of goods trade from July 1, 2006. Tariff of products accounting for 97% of the total of the two countries would be zero in ten years. China and Chile would carry out free trade in education, science & technology, environment protection, labor, social curity, IPR, investment and promotion, mineral and industry. This agreement has promoted the free trade between China and Chile 烧茄子图片successfully.
Absolute and comparative advantage
Absolute advantage refers to the ability of a particular person or a country to produce a particular good with fewer resources than another person or country. Absolute advantage is said to occur when one country can produce a good or rvice to pre-determined quality more cheaply than anther country. It stands contrasted with the concept of comparative advantage which refers to the ability to produce a particular good at a lower opportunity cost. Opportunity cost is defined as the cost of choosing a good or rvice me
asured in terms of the next best alternative given up. A country has a comparative advantage in producing a good if the opportunity cost of producing that good in term of other goods is lower in that country than it is in other countries.
Example: Korea and Japan have following production possibilities for two commodities, mobile phones英烈的故事 and computers; assume that all the resources owned by each country are same.
