hnd经济学2世界经济学.docx

1、hnd经济学2世界经济学Economics2: The World EconomyF86E 35Candidate Name: REN LUGrade and Class: 2013 BA1Introduction 21. Free trade 32. Absolute advantages and comparative advantages 33. The benefits of free trade 44. The purpose of carrying out trade protectionism 55One Mechanism of the World Trade Organiza

2、tion 66. One measure of European Union promotes economic integration 87. Balance of payments 98. The general trends in UK trade over the last 30 year 109. The balance of payments affected by exchange rates 1210. Advantages and disadvantages of fixed rate and floating rate 1311. Effects of fixed rate

3、 and floating rate on individuals and company 1512. The characteristics of the newly industrialized countries and the developing countries 1613. The issues of the newly industrialized countries and the developing countries 1714. The influences Multi-National Corporations bring to newly industrialize

4、d countries. 18Conclusion 19Reference 20IntroductionThis report has introduced the world economics simply. The content includes: International trade, free trade, Protectionism, the role of WTO and under-developed nation, UK absolute and comparative advantage, the protectionism and two recent example

5、s about demonstrate arguments which government may put forward for its use, two barriers of trade, a EU initiative about the role of the EU in promoting trade, the composition of the balance of payments, the general trends in UK trade over the last 30 years, the way which the balance of payments aff

6、ected by exchange rates, an analysis of two current issues that face LDCs, and the aid of recent examples about two impacts of multinationals on NICs and LDCs.I. Free trade(1). Free trade is a type of trade policy that allows traders to act and transact without interference from government. Thus, th

7、e policy permits trading partners mutual gains from trade, with goods and services produced according to the theory of comparative advantage. China-ASEAN free trade area was formally established in January 1, 2010, covering a population of 00. China-ASEAN free trade areas GDP amounted to $6 and trad

8、e amounted to $. It is the largest free trade zone among developing countries.After the establishment of CAFTA, more than 90% products are carried out for zero tariffs on both sides. Average tariffs from Chinese to ASEAN decrease from % to %, Average tariffs from ASEANs six old members to Chinese de

9、crease from % to %. Tariffs huge reduction promoted the rapid growth of bilateral trade.China and ASEAN countries trade investment grows, economic integration deepens, companies and people are widely benefit, realizing goals of mutual benefit and win-win cooperation and common development. China and

10、 ASEANs total quantity of bilateral trade grows rapidly. From January to October this year, the bilateral trade volume has reached to $0000, a year-on-year growth of %.(2). Absolute advantages and comparative advantagesAbsolute advantages is said to occur when one country can produce a good or servi

11、ce to pre-determined quality with less resources or more cheaply than another country.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 the comparative advantage

12、s. UK is a major importer of manufacturing goods such clothes, shoes, toys, electronic produces etc. as these labor oriented consumer goods will cost more in UK before 1980s. UK has the With the development of service, the advantage of trade is service trade. The goods that courtry import and export

13、 change over time as the goods in which they have a comparative advantage change over time. Before 1970s, manufacturing industry is its absolute advantage. After 1970s, service industry is more competitive for international trade such as computer software, business service and pharmaceuticals. These

14、 industry are seen to bring the possibility of long term growth, while the industries based on heavy capital investment or requiring relatively cheap labor will not be competitive with developing countries.2. The benefits of free trade(1). Goods and services produced at lower cost. Free trade can pr

15、omote the cooperation of different countries in the world. It can decrease the cost of producing goods.(2). Greater range of commodities for consumers, more choice. Any countries cannot produce all products, they all have products which are unable to produce. Trade allow us to buy all of them. Great

16、er range of commodities provide customers with more choice.(3). Increased world-wide output. Each country producing according to their respective advantages has high efficiency. Under the same resources, it has high yield. Therefore, international trade increased world-wide output. 3. Barriers to In

17、ternational TradeTrade barriers are government-induced restrictions on international trade. The barriers can take many forms, including the following tariffs and non tariffs.Non Tarriff Barriers-exchange controlsIn a real world, there is and should be a certain degree of government intervention on f

18、oreign exchange. Imports need foreign currencies to buy gooods and services from must apply to the cenytal bank for the currency they need to purchase goods in that country, The Central bank can erxert control over the variety and volume of both imports and exports by controlling the quantity of for

19、eign cuurency it will issue to exporters and importers.Non Tarriff Barriers-Import DepoitsGovernment requires importers to lodge a non-interest bearing deposit in advance with its Central Bank before they can buy goods and services from abroad. Besides, the deposit is usually in an amount equal to a

20、ll or part of the cost of imported goods. This is time consuming and obviously expensive since it reduces the liquidity of the importing firms, which tend to hinder their importing activities. Before 1984, the Nigerian advanced import deposit ranged from 50% to 200% of the value of a list of import

21、items.Give a example about tariffs, 35% tariffs on Chinese tyres imposed on the United States on 11th September in 2009. It make Chinese tyres firms have to increase price if sales in America.For example, t non tariffs in Russia to Ukraine for embargoes which suspension of Ukraine imports of juice o

22、n 29th July in 2014. It make Ukraines juice not allow sale in Russia.4. The purpose of raising barriers to International Trade(1) The purpose is to protect employment. Footwear manufactureers associations of Italy, Spain ad Portugal are reported to have field applications to the EU to curb footwear

23、imports from China. Local shoemarkers in Elche, the capital of Spains once flourishing footwear industry, argue that “made in China” is taking away their jobs by that Chinese shoes have been booming in Spain just because of good quality and reasonable prices.(2) The purpose is to anti-dumping. In Ju

24、ly 2012, SolarWorld AG, a German giant, led a consortium of around 25 EU solar panel producers to file a complaint to the EU Commission to investigate whether there has been distortion of competition by Chinese counterparts due to dumping. Soon Germany against China low price.5The Role of WTOTheWorl

25、d Trade Organization(WTO) is anorganizationthat intends to supervise andliberalize international trade. The organization officially commenced on 1 January 1995 under theMarrakech Agreement, signed by 123 nations on 15 April 1994, replacing theGeneral Agreement on Tariffs and Trade(GATT), which comme

26、nced in The organization deals with regulation of trade between participating countries by providing a framework for negotiating and formalizing trade agreements and a dispute resolution process aimed at enforcing participants adherence to WTO agreements, which are signed by representatives of membe

27、r governments and ratified by their parliaments.The WTO dispute settlement mechanism is measures of dealing with trade disputes between is the effective way for countries especially the developing countries to resolve the economic friction and safeguard their legitimate rights and is very unfavorabl

28、e for the developing countries to resolve trade disputes especially trade disputes with the developed countries through bilateral channels. The bilateral approach pursues strength doctrine. Involved in trade disputes among developing countries, the WTO dispute settlement mechanism ruling is comparat

29、ively fair and reasonable. As either the complainant or respondent, the legitimate interests of the developing countries have been effectively protected. It is because the WTO dispute adjudication has very strong fairness, developing countries generally have a high enthusiasm to use the WTO dispute

30、settlement mechanism. Some larger economic scale developing countries is more active in the use of WTO dispute settlement helps to reduce the economic friction between countries, and promote friendly relations among nations. TheUruguay Roundwas the 8th round ofmultilateral trade negotiations(MTN) co

31、nducted within the framework of theGeneral Agreement on Tariffs and Trade(GATT), spanning from 1986 to 1994 and embracing 123 countries as contracting parties. The Round led to the creation of theWorld Trade Organization, withGATTremaining as an integral part of the WTO agreements. The broad mandate

32、 of the Round had been to extend GATT trade rules to areas previously exempted as too difficult to liberalize (agriculture,textiles) and increasingly important new areas previously not included (trade inservices,intellectual property,investment policytrade distortions)Here are some others areas the WTO has dealt with in attempts to establish itself as the policing body promoting free trade. The Banana Dispute. The WTO ruled that the European Union discriminated unfairly against the US with its banana import rules. The WTO allowed the US to slap a $