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Олон улсын худалдаа
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Олон улсын худалдаа

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  • Transcript

    • 1. International Trade
    • 2. The Gains from Trade
      • The law of comparative advantage
        • specialisation as the basis for trade
        • absolute advantage
        • comparative advantage
        • the gains from trade based on comparative advantage
    • 3. Production possibilities for two countries Pre-trade exchange ratios Less developed country: 2 wheat for 1 cloth Developed country: 1 wheat for 2 cloth International trade exchange ratios Less developed country: 1 wheat for 1 cloth Developed country: 1 wheat for 1 cloth (LDC exports wheat: DC exports cloth)
    • 4. Production possibilities for two countries Pre-trade exchange ratios Less developed country: 2 wheat for 1 cloth Developed country: 1 wheat for 2 cloth International trade exchange ratios Less developed country: 1 wheat for 1 cloth Developed country: 1 wheat for 1 cloth (LDC exports wheat: DC exports cloth)
    • 5. Production possibilities for two countries Pre-trade exchange ratios Less developed country: 2 wheat for 1 cloth Developed country: 1 wheat for 2 cloth International trade exchange ratios Less developed country: 1 wheat for 1 cloth Developed country: 1 wheat for 1 cloth (LDC exports wheat: DC exports cloth)
    • 6. Production possibilities for two countries Pre-trade exchange ratios Less developed country: 2 wheat for 1 cloth Developed country: 1 wheat for 2 cloth International trade exchange ratios Less developed country: 1 wheat for 1 cloth Developed country: 1 wheat for 1 cloth (LDC exports wheat: DC exports cloth)
    • 7. The Gains from Trade
      • The limits to specialisation and trade
      • The terms of trade
        • P X / P M
      • Other reasons for gains from trade
        • decreasing costs
        • differences in demand
        • increased competition
        • trade as an ‘engine of growth’
        • non-economic advantages
    • 8. Arguments for Restricting Trade
      • Methods of restricting trade
        • tariffs
        • quotas
        • administrative barriers
        • other
      • Arguments for restricting trade
        • infant industry argument
        • changing comparative advantage
        • to prevent dumping
    • 9. Arguments for Restricting Trade
      • Arguments for restricting trade (cont.)
        • to prevent establishment of a foreign-based monopoly
        • to spread risks
        • externalities
        • pursuing national interests (but against world interests)
          • exploiting monopoly power
          • protecting declining industries
        • non-economic arguments
    • 10. Arguments for Restricting Trade
      • Problems with protection
        • protection as ‘second best’
        • world multiplier effects
        • retaliation
        • cushions inefficiency
        • bureaucracy
      • Measuring the efficiency loss from protection
    • 11. The cost of protection O P Q S dom (= MC ) Q 1 Q 2 S world P W D dom
    • 12. The cost of protection O P Q S dom (= MC ) S world + tariff S world a Q 1 Q 2 P W + t P W D dom Area edbc equals loss of consumer surplus d e c b Q 3 Q 4 Tariff
    • 13. The cost of protection O P Q S dom (= MC ) S world + tariff S world a Q 1 Q 2 Q 3 Q 4 P W + t P W D dom Area 3 equals gain in tariff revenue Area 1 equals gain in producer surplus d e c b 1 2 3 4 Tariff
    • 14. The cost of protection O P Q S dom (= MC ) S world + tariff S world a 1 2 3 4 Q 1 Q 2 Q 3 Q 4 P W + t P W D dom Areas 2 + 4 equals net loss d e c b Tariff
    • 15.
      • History of protection
        • Pre-war growth in protection
        • Post-war reduction in protection and the role of GATT
          • the growth in world trade
      World Attitudes towards Trade and Protection
    • 16. Growth in world real GDP and world merchandise exports Source: Trade Statistics , WTO (www.wto.org)
    • 17. Growth in world real GDP and world merchandise exports Growth in real GDP Source: Trade Statistics , WTO (www.wto.org)
    • 18. Growth in world real GDP and world merchandise exports Growth in real GDP Growth in merchandise exports Source: Trade Statistics , WTO (www.wto.org)
    • 19.
      • Re-emergence of protectionism in 1980s
        • the increasing use of non-tariff barriers
      • The Uruguay Round
        • aims of the negotiations
        • problems in reaching agreement
        • the agreement
        • assessing the agreement
      World Attitudes towards Trade and Protection
    • 20.
      • The World Trade Organisation
        • WTO more powerful than GATT
        • WTO rules
          • non-discrimination
          • reciprocity
          • general prohibition of quotas
          • fair competition
          • binding tariffs
        • attitudes of the WTO
        • WTO activity in recent years
          • resistance from various groups to unfettered trade
      World Attitudes towards Trade and Protection
    • 21. Trading Blocs
      • Types of preferential trading arrangement
        • free trade areas
        • customs unions
        • common markets
          • features of a full common market
      • Direct effects of a customs union
        • trade creation
        • trade diversion
    • 22. Trading Blocs
      • Long-term effects of a customs union
        • longer-term advantages
          • internal economies of scale
          • external economies of scale
          • better terms of trade
          • increased competition between members
        • longer-term disadvantages
          • certain regions of the union may suffer
          • possibility of oligopolistic collusion
          • administrative costs
    • 23. Preferential Trading in Practice
      • Preferential trading in practice
        • the EU
        • the EEA
        • NAFTA
          • the advent of NAFTA
          • experience to date
          • proposals to extent to an all Americas free trade area
        • the Asia-Pacific Economic Co-operation forum (APEC)
        • other free trade areas / customs unions
    • 24. The European Union
      • Historical background
      • The economic nature of the EU
      • Development of common EU policies
        • Common Agricultural Policy
        • regional policy
        • competition policy
        • tax harmonisation
        • social policy
        • trade policy
    • 25. The European Union
      • The single market
        • historical background
        • the Single European Act
        • completing the single market
      • The benefits of the single market
        • trade creation
        • reduction in the direct costs of barriers
        • economies of scale
        • greater competition
    • 26. The European Union
      • Criticisms of the single market
        • radical economic change is costly
        • adverse regional effects
        • development of monopoly / oligopoly power
        • trade diversion
        • political objections: loss of sovereignty
      • Developments of the single market
        • evidence of economic benefits
        • eliminating remaining barriers
          • Internal Market scoreboard
        • effects of expansion of the EU
    • 27. Trade and Developing Countries
      • Trade strategies
        • primary outward looking
        • secondary inward looking
          • import-substituting industrialisation (ISI)
        • secondary outward looking
          • possibly complemented by primary inward looking
    • 28. Trade and Developing Countries
      • Approach 1: exporting primaries
        • justification for exporting primaries
          • exploits comparative advantage
          • a 'vent for surplus'
          • an 'engine for growth'
        • problems with traditional trade theory
          • comparative costs change over time
          • benefits may not flow to nationals
          • trade my lead to greater inequality
          • externalities from mines and plantations
    • 29. Trade and Developing Countries
      • Exporting primaries (cont.)
        • long-term problems for primary exporting countries
          • low income elasticity of demand
          • protection in advanced countries
          • technological developments
            • synthetic substitutes
            • miniaturisation
          • rapid growth in imports
          • adverse movements in terms of trade
    • 30. World primary commodity prices (1990 = 100)
    • 31. World primary commodity prices (1990 = 100)
    • 32. World primary commodity prices (1990 = 100)
    • 33. World primary commodity prices (1990 = 100)
    • 34. Average annual changes in prices of various products
    • 35. Average annual changes in prices of various products
    • 36. Trade and Developing Countries
      • Approach 2: ISI
        • justifications
          • problems of primary exporting
          • dynamic potential in manufacturing
            • infant industries
            • rapid technological advance
        • patterns of protection
          • selecting industries for protection
          • tariff and quota escalation
          • attracting multinational investment
    • 37. Trade and Developing Countries
      • Approach 2: ISI (cont.)
        • adverse effects of ISI
          • often counter to comparative advantage
          • tends to cushion inefficiency
            • encourages establishment of monopolies
          • artificially low interest rates
            • use of capital-intensive techniques
          • encourages rural–urban migration
          • adverse effects on rural sector
          • leads to greater inequality
          • environmental problems
          • limit to home market
    • 38. Trade and Developing Countries
      • Approach 3: exporting manufactures
        • transition from inward-looking to outward-looking industrialisation
          • a neutral trade approach
          • active promotion of manufactured exports
        • benefits from exporting manufactures
          • conforms more closely with comparative advantage
          • increased competition
          • increased investment
          • more employment and greater equality
    • 39. Growth rates and export performance of selected secondary outward-looking countries
    • 40. Growth rates and export performance of selected secondary outward-looking countries
    • 41. Growth rates and export performance of selected secondary outward-looking countries
    • 42. Growth rates and export performance of selected secondary outward-looking countries
    • 43. Growth rates and export performance of selected secondary outward-looking countries
    • 44. Trade and Developing Countries
      • Approach 3: exporting manufactures (cont.)
        • drawbacks of exporting manufactures
          • possible retaliation from advanced countries
            • but attitudes of WTO
          • competition from other developing countries
          • vulnerability to world fluctuations
            • world recessions
            • speculation
        • trade between developing countries
          • trade blocs of developing countries