,*,单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,International Business Topics,International Business Topics,Unit 1.,International Trade Theory,Goals of the Lecture:,Identify those major theories of international trade,Understand the implications of the theories to businesses,Unit 1.International Trade,Warming-up Questions,Can you list some international trade theories?What do you know about them?,Why do we learn trade theories?What benefits can we get by learning these theories?,Warming-up QuestionsCan you li,What do trade theories tell us?,Benefits of international trade,show why countries should trade for products/services even when they can produce them domestically,Patterns of international trade,show why countries specialize the way they do,Role of government,help articulate the role of government policy,What do trade theories tell us,An overview of trade theory development,Early thinking:Mercantilism,mid-16th century,Adam Smith:The theory of absolute advantage,1776,Ricardo:The theory of comparative advantage,1817,Heckscher-Olin theory:1950s,Product Life Cycle Effects,mid-1960s,“,New,”,Trade Theories,1970s,Porter,s Diamond:national competitive advantage,1990,An overview of trade theory de,1.Mercantilism,(mid-16,th,17,th,),重商主义,Basic doctrine:,A trade surplus,will benefit a country,increasing its national wealth(gold&silver as currency)&prestige.,Government intervention,:,Policies which maximize exports and minimize imports,subsidies,tariffs,&,quotas,What is its argument?,1.Mercantilism(mid-16th 17t,David Hume(1752)Critique on mercantilism,L,ong-run surplus is impossible.,Fundamental weakness:Trade is seen as,a zero-sum game,(a gain by one country results in a loss by another),If England had a trade surplus with France,Inflation,Expensive goods,Export decreased,Contraction,Cheaper goods,Export increased,Englands trade balance would deteriorate,while,Frances trade balance would improve.,Result:,David Hume(1752)Critique on,Although discredited as a theory,mercantilist thinking is still very much alive,so called,neo-mercantilism:,A phenomenon at the Uruguay Round of negotiations on GATT and Doha Round in WTO:,The approach of individual negotiation countries,both industrialized and developing,has been to press for trade liberalization in areas where their own comparative competitive advantages are the strongest,and to resist liberalization in areas where they are less competitive and fear that imports would replace domestic production.,Although discredited as a theo,Logic,Economic,power,Political,Power,A Balance-of,-trade surplus,Logic Economic Political A Ba,Instruments of Trade Policy,Tariffs,Subsidies,Import quotas(and“voluntary”export restraints),Local content requirements,Administrative trade policies(bureaucratic hurdles,eg.Trade ban,standards),TBT,:Technical Barriers to trade,SPS,:Agreement On The Application Of Sanitary And Phytosanitary Measures,Instruments of Trade PolicyTar,2.Absolute Advantage Theory,Adam Smith(1776)attacked mercantilism:,Countries differ in their ability to produce goods efficiently.Thus,a country has,an absolute advantage,in the production of a product when it is more efficient than any other country in producing it.,Countries should,specialize in,the production of goods for which they have an AA,then trade these goods for the goods produced by other countries.,Both countries benefit from international trade(,a,positive-sum game),.,Adam Smith advocated:,specialization,&,free trade,The Wealth of Nations,2.Absolute Advantage Th,David Ricardo:,Question:,What might happen when one country has an absolute advantage in the production of all goods?,Answer:,It still makes sense for such a country to involve in international trade.,Principles of,Political Economy,David Ricardo:Question:What m,3.Comparative Advantage Theory,David Richardo(1817):,Assertion:Countries should specialize in the production of those goods that it produces,most,efficiently,and to buy the goods that it produces,less,efficiently from other countries.,Free trade:,a positive-sum game.,It leads to greater potential world production.Consumers in all nations can consume more if there are no restrictions on trade.This occurs even in the case of countries that lack an AA in the production of any good.,David Richardo advocated:,specialization,&,free trade,3.Comparative Advantage Theor,Adam Smith vs.David Ricardo,Smith,believes that trade occurs when a nation can sell items at a lower cost.,Ricardo,argues that trade occurs when nations can sell items with different costs.,Adam Smith vs.David RicardoSm,Extensions of the Richardian Model,Two assumptions to be relaxed:,The assumption of constant returns to specialization,The static assumption that trade does not change a countrys stock of resources or the efficiency with which it utilizes those resources.,Extensions of the Richardian M,1.Diminishing Returns,Assumption of,constant returns to specialization:,the units of resources requi