Report of Economics 2: The World Economy
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Student Number:
Unit Name:Economics 2: The World Economy
Class:GT&B-1
Word Count:2454
Date:July 6 2015
Content
Introduction (3)无论的英文
1 Free trade (3)
4 P rotectionism’ and Barriers to trade (4)
5 The role of the WTO in the development of free trade. (5)
6 The role of one of EU (5)
7 The composition of the UK balance of payments. (6)
8 The general trends in UK trade (6)
9 How is the balance of payments affected by exchange rates? (6)
10 Three advantages and three disadvantages of exchange rates (7)
淘宝是什么
11 Three effects on individuals and three effects on business f (8)
12 Two characteristics of LDCs (8)
13 One issue facing NICs, and one issue facing LDCs (9)
14 The impact of transnational firms on NICs or LDCs. (9)
Conclusion (10)
< 错误！未定义书签。Appendixes. (11)
Introduction唐李治
This report discuss some economic phenomenon in UK, and explain some economic situation and role of some economic organization in world.
这件事我做对了作文1 Free trade
Free trade is a policy in international markets in which governments do not restrict imports or exports. Goods and rvices could be exchanged freely between countries with no barriers to this exchange. The most significant feather of the free trade agreement is that it will lead to the elimination of all categories of trade barriers on imports from foreign countries. For example, the North American Free Trade Agreement is an agreement signed by Canada, Mexico, and the United States, creating a trilateral rules-bad trade bloc in North America.
2 The United Kingdom’s absolute and comparative advantages
Absolute advantage is said to occur when one country can produce a good or rvice to a pre-deter
mined quality with less resource than another country. For example, UK may be able to produce cars with less resources than Brazil. But Brazil can produce excellent coffee far more efficiently than UK. UK have absolute advantage in cars.
The theory of comparative advantage is an economic theory about the potential gains from trade for individuals, firms, or nations that ari from differences in their factor endowments or technological progress. Even when a country has an absolute advantage over another country in terms of commodities they wish to trade it will still be to their mutual advantage to trade providing each country has a comparative cost advantage. For example, Ricardo considers a world economy consisting of two countries, Portugal and England, which produce two goods of identical quality. In Portugal, the a priori more efficient country, it is possible to produce wine and cloth with less labor than it would take to produce the same quantities in England. However, the relative costs of producing tho two goods differ between the countries.
In following chart, England could commit 100 hours of labor to produce one unit of cloth, or
produce \frac 56 units of wine. Meanwhile, in comparison, Portugal could commit 90 hours of labor to produce one unit of cloth, or produce \frac 9 8 units of wine. So, Portugal posss an absolute adv
antage in producing cloth due to fewer labor hours, and England has a comparative advantage due to lower opportunity cost.
Hours of work necessary to produce one unit
Country Cloth Wine
England100120
Portugal9080
No matter the absolute advantage or the comparative advantage, they all make trade better and more efficient.不伦不什么
3 Three gains from trading internationally.
1. Increa fiscal revenue and improve national welfare level. Becau the government can get
a lot of revenue from goods tariffs
远程桌面端口号2. Goods and rvices’price will decrea. Becau consumers will have more choice for greater ran
校徽征集ge of commodities.
3. Employment will increa. Becau enterpri, producers can obtain benefits of economies of scale.
4 P rotectionism’ and Barriers to trade.
Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow fair competition between imports and goods and rvices produced domestically.
Trade barriers are government-induced restrictions on international trade. Barriers to International Trade are obstacles that make it difficult to enter a given market. To protect a country’s own industries, the country which in adver side need to find some ways to be barriers to limit the import products.
Tariff is taxes or customs duties placed on foreign products to artificially rai their
prices and this hopefully, suppress domestic demand for them. Non-tariff barriers traditionally have been actions . Probably the best known of the is the quota
Reason:(1)Protect domestic industries (2)National curity (3)Protect domestic employment (4)Rai revenue (5)Balance of payment argument (6)Prevent ‘Dumping’ (7)Cheap foreign labour argument
5 The role of the WTO in the development of free trade.
带水的网名Role: Policing body, Forum for trade negotiations, Administering/Monitoring WTO trade agreements, Handling trade disputes, Technical assistance and training for developing countries , Cooperation with other international organizations. It overes the implementation, administration and operation of the covered agreements. It provides a forum for negotiations and for ttling disputes. WTO can make each member cuts tariff, eliminates trade barriers and discrimination treatment on the basis of mutual benefit.
For example the Boeing and Airbus companies have been at loggerheads for years over subsidies. Boeing argues Airbus is subsidid by France while Airbus argues Boeing is indirectly subsidid by the US Defence Spending and could not survive without it.
6 The role of one of EU
EU’s aim: elimination of customers duties and quotas on imports and exports of goods between member states, establishment of a common customs tariff and commercial policy towards non member states, abolition of obstacles to the free movement of persons, rvices and capital between member state, establishment of common policies for agriculture and transport, the prohibition of business pratices which restrict or distort competition within the common market, the association of overas countries and territories to increa trade and development, the creation of economic and monetary union, the development of a common foreign curity ad defence policy.
