HND-EconomicsThe-World-Economy世界經濟學報告材料

1、實用標準文檔Economics 2: TheWorld Economy文案大全World Economy29tradingComparativeContentIn troducti on 3Secti on 1: Intern ati onal TradeThreegainsfrominternationally3FreeTrade3AbsoluteandAdvantage3ProtectionismBarrierstotrade-4WTOandEU5Secti on 2: Intern ati onal FinanceBala neeofPayme ntsandGen eraltre nds

2、in UKTrade6Relati on shipbetwee n the excha nge rate and the bala nee ofpayme nts 14Si ngleCurrency15Effects on in dividuals andbus in essof theEuro15Section 3: Less Developed Countries (LDCs)CharacteristicsofaLDC16Curre ntissuesthatfaceLDCs16The impacts ofmult in ati on alson LDCs andNlCs16Conclusi

3、on 16References 17In troducti on:As a member of the government of nation on the periphery of Europe, itis my obligati on to illustrate the ben efits of joi ning the EU to the Premier.In this report, I will analyze 15elements in next three parts to make a clear expla natio n of ben efits of jo ining

4、the EU.Secti on 1: Intern ati onal TradeThree gains from trad ing intern ati on ally:To beg in with, the intern ati onal trade could in crease world out-put. Thetendency of globalization brings the firms more opportunities to gain the labor, resources, con tracts and new tech no logy. The supply and

5、 dema nd will be improved with the improveme nt of compa ny s productivity.Once the supply has bee n improved, the goods ands were produced atlower cost and there are more and more competitio ns, the price of the product might fall which mea ns con sumers could get more choices and cheaper goods.In

6、addition, the most important gaining of international trade is it cangen erate econo mic growth. Free trade could in crease sales, profit margi ns, and market shares and the both dema nd and supply level has updated. Mean while, the producer n eeds more resources, labor and capital to produce more t

7、o satisfy the global market. It direct result in improvingthe material market, finance market, and may decline theun employme nt rate.Free tradeFree trade is a con cept that there is no barrier to goods ands excha ngedbetwee ncoun tries.Si nee differe ntcoun trieshave differe ntterrai n,weather, res

8、ources and tech no logy, the intern atio nal trade would bring the goods which are more valuable tha n the local people produce it by themselves.A good example for free trade is in Nov.18, 2004, Chin ese Preside nt andChilea n Preside nt declared the start of the FTA n egotiatio ns. Accordi ng to th

9、e agreeme nt, the two coun tries would start tariff reduct ion of goods trade from July 1,2006. Tariff of products acco unting for 97% of the total of the two countries would be zero in ten years. China and Chile would carry out free trade in educati on, scie nee & tech no logy, en vir onment protec

10、t ion, labor, social security, IPR, inv estme nt and promoti on, min eraland industry. This agreementhas promoted the free trade betweenChina and Chile successfully.Absolute and comparative adva ntageAbsolute advantage refers to the ability of a particular person or a country to produce a particular

11、 good with fewer resources tha n ano ther pers on or coun try. Absolute adva ntage is said to occur whe n one country can produce a good or to pre-determined quality more cheaply than anther country. It stands contrasted with the concept of comparative adva ntage which refers to the ability to produ

12、ce a particular good at a lower opportunity cost. Opportunity cost is defined as the cost of choos ing a good or measured in terms of the n ext best alter native give n up. A country has a comparative advantage in producing a good if the opport un ity cost of produc ing that good in term of other go

13、ods is lower in that country tha n it is in other coun tries.Example: Korea and Japa n have followi ng producti on possibilities for two commodities, mobilepho nesand computers; assume that all theresources owned by each country are same.Mobile phoneComputerJapa n200020000Korea100015000It is clear t

14、hat Japan has an Absolute advantage over Korea in bothcommodities. But the advantage it has is much greater for mobiles. Using the same resources as Korea it can make twice as many mobile phon es.For Japan the cost of 1 Mobile phone is 10 bales of Computers, i.e. 20000/2000For Korea it is 15, i.e. 1

15、5000/1000But if we look at the case of computers we will find that here for Japan the cost of a bale of computers is one-tenth of a Mobile phone while for Korea it is one fifteenth. In terms of the output of Mobilephoneforeg one (opport unity cost), computer is cheaper in Korea tha n Japa n.Korea ha

16、s a Comparativeadvantagein computer while Japan hascomparative adva ntage in mobile pho ne.Protectio nismProtectionism is the economic policy of restraining trade between nations,through methods such as high tariffs on imported goods,restrictive quotas, a variety of restrictive governmentregulations

17、designed to discourage imports and anti-dumping laws in an attempt to protect domestic in dustries in a particular n atio n from foreig n take-over or competiti on.Here are two examples of protecti oni sm:1: Britain imports bananas from its ex-colonies in South America whileUSA owns huge banana plan

18、tations in South America. In 1999 Britain refused to import bananas from South America, so the US gover nment slapped tariffs on some British-made goods. The most serious one was a punitive tariff of 100% on Scottish wool products in order to limit the import from Brita in.2: Another example of prot

19、ectionismis in January, 2009, Americangovernment settled a policy that only the American steel can be used inAmerica. The America n gover nment ten ded to use this policy to reduce the loss in financial crisis and it helps the steel workers to keep their jobs.In this example, protecti onism protects

20、 the domestic lower-skilled labor and domestic in dustries.Barriers to tradeTo protect a country s own industries, the country which in adverse side need to find some ways to be barriers to limit the import products, usually, the two methods are tariff and non tariffs.Tariff is taxes or customs duti

21、es placed on foreign products to artificiallyraise their prices and this hopefully, suppresses domestic dema nd for them. This tax may be ad value, that is, a perce ntage of the price of the goods or specific, that is, a tax per unit of weight or physical quantity.For example, in January 12, 2009 th

22、e Russian governmentraised theexpropriati on tariff (up to 30 perce nt) for the cars import in the next nine mon ths. The import car s price will be in creased to be WP (price for the whole world) adds the tariff, since the price is in creas ing, the sales of the import cars must fall down. The cust

23、omers might choose the Russian car in stead of import cars since it is cheaper.Non-tariffbarrierstraditi on allyhave bee nacti onssuch Quotas,embargoes, exchange control and import deposits. Probably the best known of these is the quota. This is a physical limitati on on the qua ntity of import. Quo

24、ta is a physical limitation on the quantity of imports which had bee n ack no wledged by local laws. Usually the importersn eed toapply to pay for a lice nse to sell goods.For instanee, Russia uses another method to limit foreign car import since 2008 to limit the quantity of import; only a few comp

25、anies which have the import license could import cars and have a selling upper limit.Russia uses these methods to restrict the import qua ntity, and duri ng the gover nment limited foreig n goods import, it can promote the domestic in dustries.WTO and EUIn 1948, the Ge neral Agreeme nt on Tariffs an

26、d Trade (GATT) was established by the developed countries. In 1 Jan 1995, the GATT was supplantedby a new institution, the World Trade Organization (WTO)and aims to improve trade and inv estme nt flows around the world. It is an intern ati onal body seek ing to promote free trade by ope ning markets

27、 through the elimination of import tariffs. The organizationadministerstrade agreements,monitors internationaltrade policy and acts as aforum for trade n egotiati ons. The four main goals of WTO are: free ing global trade through uni versally lowered tariffs, impos ing the same ruleson all members i

28、n order to homogenizethe trade process, spurringcompetition through lowered subsidies, and ensuring the same trade concessions for all member nations. The WTO also provides technical assistanee and training for developingcountries. WTO aims for equalrepresentationamong members by granting each membe

29、r countrymost-favored n ati on status; whe n a member country bestows a trade privilege on ano ther n ati on, the privilege must be exte nded to all other membercoun tries.Ano thertenet is n ati onaltreatme nt, whichbehooves coun tries to treat foreig n imports equally with those produced domestical

30、ly.The best example for joining the WTO is the join of China in 2007, after that, China achieves lots of ben efits from the decrease of tariff, limitations and the simplification of trading procedures.EU sta nds for Europea n Un io n and is an econo mic union, which aims toabolish tariffs and quotas

31、 among members, com mon tariff and quota system, restrictio ns on factor moveme ntsand harm oni zati on andun ificati on of econo mic policies and in stituti on s. It draws out regulati ons, mon itors member states, solves disputes and problems among member states and negotiates with other countries

32、 or international organizations on the behalf of EU members. The Europea n Union aims to promote and smooth free trade among internal European Union and initiatives forsimplify ing n ati onal and com munity rules in elude simpler legislati on for the in ternalmarket (SLIM) and Europea n Busin ess Te

33、st Pan el. Forexample, in Oct 16, 2009, EU and Korea n gover nment sig ned a free trade agreeme nt of 100 billio n US dollars after two years n egotiati on and EUwill can cel the tariffs on imports of textile and cars from Korea in the n ext three years. This will promote the free trade of EU and ha

34、ve positive impact on the economy.Secti on 2: Intern ati onal FinanceBala nee of Payme nts and Gen eral trends in UK TradeBala nee of payme nt is the n ame give n to the record of tran sacti ons between the residents of the country and the rest of the world over a period of time. It is a key econo m

35、ic statistics and UK s Bala nee of Payme nts is comprises by the curre nt acco unt, the capital acco unt, the finan cial acco unt which deals with flow of direct portfolio and in vestme nts and reserve assets and the Intern ati onal Inv estme nt Positi on which shows the Stock of External Financial

36、Assets and Liabilities. The chart below shows the compositi on if Bala nee of Payme nts in 2008:Summary of b麗ne of payments in 2M81. Cunvft*ocu 噌A 3bind xrrmI Goos3 Sevcw21. E22. il Cor 2.4.沏 二三- g二寶：TerajcneH工eJmb and TtraDcra2.11. Gwflrmtft4Z1 31251 102 1TJ3WX曲*1蟲95E2EZ5 乂 宀葦I41 7二凹5甕 B 黑sss5 Fws

37、njCOTrCTn narnC1.1 DtiKt Kwanert22FWRIC rKWVWHl2 icoierrwm: ncuirxi wn rF t rwrf k(tc QurtrtmK游価1 02昜tw12E卿152HhCV pWERCt1 Z+TTKCn7otii ounwit Mxurt2- cjcfta jnd Tirun 出 KooumA f KOUT.Z*3tt3 rwThn1 ,忙2*忙 rwl wniri ml ft Waneda narrs mejtLLTKt rAEtiWTlAxwd1.1. M HU 1.LRcntA：d cxnrfl：in LrtEdKnjmi1.1.

38、 昌 qJ 彳 rlts1.1 ervKted *amn(pX =TtECCtvrwmertssez4/ Ta 341 ar-： 4.2CjreriCj- y-j oc; iiOtTcaaet：LA 1W4.1.1S 3Etrti4. Linersj.i.-u/rvKywoe 44.cre-jfan. Peer出 kz-szE 1. fKinr?輕5 二ecoi 734 ng5 3.Dtttar hbic MFF 4 Rjreij- mlT(pTcM Mpftal And Armb moui*ma wmnt odpm andnnjKMb m:err舊 nn m cm: ot:TUb&n5:16

39、37 0835U 130MAtF*制血*31血W t3S;沁201s.2 1ras272P1莫仆12=17Jf遵匚厘1Z4T-19Z3宓二“72 E廠1 Cter cx4bl tTsxr-T 偵 Jicct iiresrxn xtmo prwerte :p 飛 orr 于 fl jIec rlrTylLeL mlk lk Do -xm infers-2 Citer Kb nDacop on a-rz e L n e Luted 斷吐xn b=- jtz d tec u zlreci-asters LiBtk mi 玄三ta) The currentaccount can be divided

40、into four categories: trade ingoods, trade in, in come and curre nt tran sfers. Positive net in come from abroad corresp onds to a curre nt acco unt surplus; n egative net in come from abroad corresp onds to a curre nt acco unt deficit.Here are the trade figures of rece nt years:Here are the Curre n

41、t Acco unt Bala nee Chart and the Chart of trade in Goods ands of UK in last 20 years.Current account balance tiillionThe curre nt bala nee has usually bee n in deficit over the last 30 years.TheUK has recorded a current account deficit in every year since 1984. Priorto 1984, the curre nt accou nt r

42、ecorded a surplus in 1980 to 1983. From 1984 to 1989, the curre nt acco unt deficit in creased steadily to reach ahigh of 25.5 billi on pounds in 1989, equivale nt to -4.9 per cent of Gross Domestic Product (GDP). From 1990 un til 1997, the curre nt accou nt deficit decli ned to a low of 1.0 billio

43、n pou nds in 1997. Between 1998 and 2006, the current account deficit widened sharply, peaking at 43.8 billion pounds in 2006. This was the highest recorded in cash terms but onlyin 2008 it currently stands atequated to -3.3 per cent of GDP. In the past two years, there has been a reduction in the c

44、urrent account deficit 25.1 billio n, equivale nt to -1.7 per cen t of GDP.Trade in goods and servicesCredits less debitsIt is obvious that UK had a large deficit in trade of goods in the last 30 years and the deficit becomes lager and in creases greatly from 1998 to 2008 while the surplus of trade

45、in grows smoothly but not as markedly asandthe goods deficit. The trade in goods account recorded net surpluses in the years 1980 to 1982, largely as a result of growth in exports of North Sea oil. Since then however, the trade in goods account has remained in deficit. The deficit grew significantly

46、 in the late 1980s to reach a peak of 24.7 billion in 1989, before narrowing in the 1990s to levels of around 10 billion to 14 billion. In 1998 the deficit jumped by over 9 billion, and it has continued to rise sin ce, reach ing a cash record of 92.9 billio n in 2008.There are two differe nt of In c

47、ome Direct In vestme ntIn comePortfolio In vestme nt In come. The Direct Inv estme nt In come means the profits earned by UK compa nies from overseas bran ches and associated compa ny. And the Portfolio Inv estme nt In come is the in terest on bonds and divide nds, held abroad by UK compa nies and r

48、eside nts.Here are charts of in come over the 10 years:Direct investment incomeE billionThe in come sect ion has show n positive growth from 2006 to 2008 and is very much in surplus rece ntly.As for the current transfer, it also has two different parts:The taxes, payments and receipts to the EU, Soc

49、ial Security Payments abroad, and military expenditure abroad is the Central GovernmentTran sfer. And for Other Sector Tran sfers, it in cludes receipts from the EUSocial Fund, taxes on in come and wealth paid by UK workers and bus in esses to foreig n gover nmen ts, in sura nee premiums and claims.

50、There is the Chart of Current transfer in last 10 yearsCurrent transfersCredits less debitsThe transfers account has shown a deficit in every year since 1960. The deficit in creased steadily to reach 4.8 billio n in 1990. In 1991, the deficitreduced to 1.0 billio n, reflect ing 2.1 billi on receipts

51、 from other coun tries towards the UK s cost of the first Gulf conflict. The deficit has since in creased, to reach a record 13.6 billio n in 2008.b) Compared with Curre nt Acco un ts, the compositi on of theCapital andFinan cial Acco untis more complicate.Capital Acco unt has two categories:Capital

52、 transfer: It is investmentgrants by the governmentand debts which the gover nment has agreed with the creditor do not n eed to be met.Acquisiti on and disposal of non produced/nonfinan cial assets: Purchaseor sales of property by foreig n embassy or pate nts, copyrights, trademarks, fran chises and

53、 leases.Capital account billionThe capital acco unt has show n strong steady surplus growth especially from the year of 2006 to 2008.The finan cial acco unt has four categories and here are the charts of thefour categories over the last ten years:Direct investmentPortfolio investmentReserve assetsCe

54、ntral government sectorNCt debitsEmiionme価9ZH0Q29QD1ZKLZzmjiton200323U7Ncri4Tjiry-jnaoi3工-B93-7B?6B-4.Special Oramrigi P otits-EBOy-1838-73-2236-2-34-efl-SO-2+Rwerw 戶軸圖 ir lire Fum711枠出73esc憎i am漳Ckrrswy and depentts HVinbaniiSiVMnoche* barks-EBPC-11 6227332332112-3M aC9KB5463-76-BK233(7斗C323,10TbCd

55、il Qirrmty anc dtpco- ii-EBFE-2555.2. &51-J63-13343站-W-溯iliea*mariF-t mTkiiTP-nts-FBPF21*-33?3 419244-10f1卿 -2 M3-32IW107379 14&5V1 3f32 IK-?6S胡GW-ewlUii的碼725卻屮口2 Ci 空237-4521伽1網-EB?-18W-WI-2W1C-1WtZZXC21 4SI FPPI-1K-11w-a 1iDldl-W”2-1 StIM4M111-1 ZMAccord ing to these graphs, in vestme nt in creased dramatically from the mid-1990s, reflect ing the in creased globalizati on of the wor