國(guó)際貿(mào)易學(xué)Chap00131-課件1

1、1The International Economy and Globalization1The International Economy anIntroductionEconomic InterdependenceCaused due to increased integration of market economiesReflects the evolution of global economic and political orderUS dominance post World War IIFormation of European Community (1950s)Rising

2、 importance of MNCs (1960s) Market power of OPEC (1970s) Creation of the euro IntroductionEconomic InterdepeGlobalization of Economic ActivityGlobalizationGreater interdependence among countries and their citizensConsists of increased integration of products and markets across nations Includes nonec

3、onomic elements such as culture and the environmentGlobalization of Economic ActForces Driving GlobalizationTechnological changeShrinks the influence of time and geographyGreater tradability of goods and servicesLiberalization of trade and investmentsLower trade barriersDevelopment of international

4、financial marketsSignificance of global production sharingAccounts for 30 percent of world tradeForces Driving GlobalizationTeWaves of GlobalizationFirst wave: 1870-1914 Decrease in tariff barriers and introduction of new technologiesLargely driven by Europe and America Exports as a share of world i

5、ncome nearly doubled to about 8 percentPer capita incomes rose by an annual average of 1.3 percent as against 0.5 percent earlierGreat Depression and increase in protectionismExports as a share of national income fell to about 5 percentWaves of GlobalizationFirst waWaves of GlobalizationSecond wave:

6、 1945-1980Decrease in transportation costs Government cooperation to decrease trade barriersDiscriminated both in terms of which countries participated and which products were includedDeveloping countries faced sizable barriers in manufactured goods Developed countries registered productivity gains

7、through agglomeration economiesDeveloping countries did not participateContinuedWaves of GlobalizationSecond wWaves of GlobalizationLatest wave: began in 1980Developing countries focus on manufacturingTariff cuts by developed countriesLiberalized foreign investment policiesIncreasing marginalization

8、 of some developing countries Significant international capital movementsLess globalized labor flowsForeign outsourcing (Table 1.2)Example: Manufacturing at HP (Table 1.1)ContinuedWaves of GlobalizationLatest wBackBackBackBackUnited States: An Open EconomyUS economy has become increasingly integrate

9、d into the world economyTrade of goods and servicesFinancial marketsLabor forceOwnership of production facilitiesDependence on imported materialUnited States: An Open EconomTrade PatternsGlobalization of US economy (Table 1.3)Increased imports as well as exportsUS ranks as the worlds greatest export

10、erOpenness: The nations exports and imports expressed as a percentage of its GDP (Table 1.4)Trade PatternsGlobalization ofBackBackBackBackTrade PatternsOpenness of US economy (Figure 1.1)Late 1800s: Relatively high due to rise in world trade Between 1890 and 1950: Less open to world trade Post World

11、 War II: Increasing openness due to technological advances and reduction in barriersRelative importance of international trade has increased by 50 percent during the past centuryShift in trade patternsFrom raw materials and agricultural products (1890s) to manufactured goods and services (today)Lead

12、ing trade partners of U.S (Table 1.5)ContinuedTrade PatternsOpenness of US eBackBackBackBackLabor and CapitalLabor mobility Has not increased in the US in the past 100 years due to restrictions on immigration 1960s: Restrictions were liberalized Capital flowsForeign ownership of U.S. financial asset

13、s has risen since the 1960sBy the late 1980s, the United States became a net borrower Labor and CapitalLabor mobilitLabor and CapitalCapital flowsIncreased international banking Unbroken 24-hr cycle of Foreign-exchange markets Commercial banking Worldwide branch networks of U.S. banksIncreased prese

14、nce of foreign banks in the U.S.Globalized operations of securities firmsContinuedLabor and CapitalCapital flowsImportance of GlobalizationCompetitive advantageGain by focusing on doing those things where there is a relative advantageGain from competitive processesInnovation and efficient production

15、Weakening of monopoliesHigher firm turnoverStability for producersVulnerability to disturbances initiated overseasImportance of GlobalizationComFallacies of International TradeTrade is a zero-sum activityImports reduce employment and act as a drag on the economy; exports promote growth and employmen

16、tTariffs, quotas, and other import restrictions will save jobs and promote a higher level of employmentFallacies of International TraFree Trade: CigarettesControversies underlying the decision on free trade of cigarettesHealth concern: Tobacco should be treated as an exception to trade rulesManufact

17、urers view: There is no basis for creating new regulations that weaken the principle of open trade protected by the WTOCurrent trade rules permit countries to enact measures to protect the health and safety of their citizensFree Trade: CigarettesControveInternational CompetitivenessCompetitiveness:

18、The extent to which goods of a firm or industry can compete in the marketplaceDepends on the relative price and quality of productsAssessing the competitiveness of a nation:What criteria underlie a nations international competitiveness?Must all of its firms and industries be competitive?Does a natio

19、n have to export more than it imports to be competitive?International CompetitivenessCInternational CompetitivenessPrimary economic objective of a nation:Generate a high and increasing standard of living for its peopleDepends on achieving high productivity of its employed resourcesChannel resources

20、from low-productivity uses to high-productivity usesBoth imports and exports are necessary for rising productivityContinuedInternational CompetitivenessPCompetition, Productivity, and Economic GrowthMcKinsey research provides evidence that the surest path to high productivity is to: Open markets to

21、trade, investment, and ideas from the most advanced nationsPermit vigorous competition with firms that have implemented leading-edge technologiesEconomists agree that growth rates are closely related to:Openness to trade, education, and communications infrastructure (Figure 1.2)Competition, Producti

22、vity, andBackBackInternational Trade: An OpportunityInternational trade benefits many workersEnables them to shop for consumption goods that are cheapestPermits employers to purchase the technologies and equipment that best complement their workers skillsAllows workers to become more productive as t

23、he goods they produce increase in valueProducing goods for export generates jobs and income for domestic workersInternational Trade: An OpporInternational Trade: A ThreatNot all workers gain from international tradeRise in unemployment and wage inequalityLoss of jobs because of cheap exports produce

24、d by lower-cost, foreign workersRelocation of firms abroad in search of low wages and lax environmental standardsWages tend to:Increase for workers whose skills are more scarce internationally than at home Decrease for workers who face increased competition from foreign workersInternational Trade: A

25、 ThreatInternational Trade: An Opportunity or Threat to Workers?International trade is just another kind of technologyIf international trade is squeezing the wages of the less skilled, so are other kinds of advancing technologyInternational Trade: An OpportBacklash Against GlobalizationCritics: U.S.

26、 policies primarily benefit large corporationsEnvironmentalists: Elitist trade organizations make undemocratic decisions undermining national sovereignty on environmental regulationUnions: Unfettered trade permits unfair competition from nations lacking labor standardsHuman rights activists: Trade o

27、rganizations support governments that allow sweatshops and pursue policies that bail out governmental officials at the expense of local economiesBacklash Against GlobalizationBacklash Against GlobalizationNoneconomic aspects: Political and military dominance of the U.S.Influence of foreign culturePerceptions appear to be closely related to the labor-market pressures Americans consider costs to be more than benefitsLess-skilled workers are much more likely to oppose free