海事大学经济贸易特色英语班1whywetrade.ppt

International Trade English -Why we trade? By Zhu Haixia 1 Why We Trade Organization lPart One: Theories and basic knowledge of international trade lPart Two: Environment of international trade lPart Three: International marketing lPart Four: Import to put it on is a peculiar business, to whiten the pins is another; it is even a trade by itself to put them into the paper. 13 Why We Trade Part 1 Text The wonders of division of labor (3) lSmith observed that by dividing the work to be done in this way, each worker became quite skilled in a particular specialty, and the productivity of the group of workers as a whole was greatly enhanced. lThrough the miracle of division of labor and specialization, the workers accomplished what might otherwise have required thousands. This was one of the secrets of the Industrial Revolution, which helped lift humanity out the abject poverty that had been its lot for centuries. 14 Why We Trade Part 1 Text The amazing principle of comparative advantage (1) lBut specialization in production fosters efficiency in an even more profound sense, Adam Smith noticed that how goods are produced can make a huge difference to productivity. But so can which goods are produced. The reason is that people( and businesses, and nations) have different abilities. Some can repair automobiles, whereas others are wizards with numbers. Some are handy with computers, and others can cook. 15 Why We Trade Part 1 Text The amazing principle of comparative advantage (2) lAn economy will be most efficient if people specialize in doing what they do best and then trade with one another, so that the accountant gets her car repaired and the computer programmer gets to eat tasty an nutritious meals. This much is obvious. What is less obvious-and is one of the great ideas of economics-is that two people (or two businesses, or two countries) can generally gain from trade even if one of them is more efficient than the other in producing everything. A simple example will help explain why. 16 Why We Trade Part 1 Text The amazing principle of comparative advantage (3) lSome lawyer can type better than their administrative assistants. Should such a lawyer fire her assistant and do her own typing? Not likely. Even though the lawyer may type better than the assistant, good judgment tells her to concentrate on practicing law and leave the typing to a lower- paid assistant. Why? Because the opportunity cost of an hour devoted to typing is an hour less time spent with clients, which is a far more lucrative activity. 17 Why We Trade Part 1 Text The amazing principle of comparative advantage (4) lThis example illustrates the principle of comparative advantage at work. The lawyer specializes in arguing cases despite her advantage as a typist because she has a still greater advantage as an attorney. She suffers some direct loss by leaving the typing to a less-efficient employee, but she makes up more than that loss by the income she earns selling her legal services to clients. 18 Why We Trade Part 1 Text The amazing principle of comparative advantage (5) lPrecisely the same principle applies to nations. Comparative advantage underlies the economic analysis of international trade patterns. A country that is particularly adept at producing certain items- such as aircraft manufacturing in the United States, coffee growing in Brazil, and oil extraction in Saudi Arabia-should specialize in those activities, producing more than it wants for its own use. The country can then take the money it earns from its export and purchase from other nations items that it does not make for itself. 19 Why We Trade Part 1 Text The amazing principle of comparative advantage (6) lThe underlying logic is precisely the same as in our lawyer- typist example. The United States might, for example, be better than Japan at manufacturing both computers and television sets. But if the United States is vastly more efficient at producing computers, but only slightly more efficient at making TV sets, it pays for the United States to specialize in computer manufacture, for Japan to specialize in TV production, an for the two countries to trade. This principle, called the law of comparative advantage, was discovered by David Ricardo, one of the giants in the history of economic analysis, almost 200 years ago. 20 Why We Trade Part 1 Text Specification leads to exchange (1) lThe gains from specialization are welcome, but they create a problem: with specialization, people no longer produce only what they want to consume themselves. The workers in Adam Smiths pin factory had no use for the thousands of pins they produced each day; they wanted to trade them for things like food, clothing, an shelter. Similarly, the administrative assistant has no personal use for the legal briefs she types. 21 Why We Trade Part 1 Text Specification leads to exchange (2) lThus, specialization requires some mechanism by which workers producing pins can exchange their wares with workers producing such things as cloth and potatoes, and office workers can turn their typing skills into things they want to consume. Without a system of exchange, the productivity miracle achieved by comparative advantage and the division of labor would do society little good. With it, standards of living have risen enormously 22 Why We Trade Part 1 Text Specification leads to exchange (3) lAlthough people can an do trade goods for other goods, a system of exchange works better when everyone agrees to use some common item (such as pieces of paper with unique markings printed on them) for buying and selling things. Then workers in pin factories, for example, can be paid in money rather than in pins, and they can use this money to purchase cloth an potatoes. Textile workers an farmers can do the same. 23 Why We Trade Part 2 Exercises lQuestions for critical thinking lWhat are the three basic questions that every economic system must find a way to answer? lIf you were to leave college, what things would change in your life? What, then, is the opportunity cost of your education? l“A country neednt trade with others if it is inferior at producing everything.” Do you agree with this opinion? lHow would you counter the argument that the United States needs to restrict textile imports in order to save American jobs ？ 24 Why We Trade Translations(1) lSecond, it must decide which of the possible combinations of goods to produce-how many missiles, automobiles, and so on, meaning to select one specific point on the production possibilities frontier. lBut specialization in production fosters efficiency in an even more profound sense, Adam Smith noticed that how goods are produced can make a huge difference to productivity. But so can which goods are produced. 25 Why We Trade Translations(2) l3. This example illustrates the principle of comparative advantage at work. The lawyer specializes in arguing cases despite her advantage as a typist because she has a still greater advantage as an attorney. She suffers some direct loss by leaving the typing to a less-efficient employee, but she makes up more than that loss by the income she earns selling her legal services to clients. 26 Why We Trade Translations(3) l4. But if the United States is vastly more efficient at producing computers, but only slightly more efficient at making TV sets, it pays for the United States to specialize in computer manufacture, for Japan to specialize in TV production, an for the two countries to trade. l5. Without a system of exchange, the productivity miracle achieved by comparative advantage and the division of labor would do society little good. With it, standards of living have risen enormously 27 Why We Trade Translations(4) l美国在小麦和布匹的生产上相对于英国具有绝对优 势，但是由于美国在小麦生产上的绝对优势要大于 在布匹生产上的优势，因而美国在小麦生产上具有 比较优势。 l为了证明比较优势法则，我们必须说明，通过各自 专门生产和出口，其具有比较优势的产品，两个贸 易合作伙伴国都能够从中获益。 l一个国家生产某个产品具有较低的机会成本，那么 它具有该商品的比较优势，而在第二种商品上具有 比较劣势。 28 Why We Trade C-E -1 l美国在小麦和布匹的生产上相对于英国具有绝对优 势，但是由于美国在小麦生产上的绝对优势要大于 在布匹生产上的优势，因而美国在小麦生产上具有 比较优势。 lThe United States has an absolute advantage in both wheat and cloth with respect to the United Kingdom, but since its absolute advantage is greater in wheat than in cloth, the United States has a comparative advantage in wheat. 29 Why We Trade C-E-2 l为了证明比较优势法则，我们必须说明，通 过各自专门生产和出口，其具有比较优势的 产品，两个贸易合作伙伴国都能够从中获益. lTo prove the law of comparative advantage, we must be able to show that trading partners can both gain by each specializing in the production and exporting the commodity of its comparative advantage. 30 Why We Trade C-E-3 l一个国家生产某个产品具有较低的机会成本 ，那么它具有该商品的比较优势，而在第二 种商品上具有比较劣势. lThe nation with the lower opportunity cost in the production of a commodity has a comparative advantage in that commodity, and a comparative disadvantage in the second commodity. 31 Why We Trade Adam Smith- the wealth of nations lEconomics, as an organized science, originated with the publication of The Wealth of Nations in 1776 by Adam Smith. According to Adam Smith, trade between two nations is based on absolute advantage. When one nation is more efficient than (or has an absolute advantage over) another in the production of one commodity but is less efficient than (or has an absolute disadvantage with respect to) the other nation in producing a second commodity, then both nations can gain by each specializing in the production of the commodity of its absolute disadvantage. Absolute advantage, however, can explain only a very small part of world trade today, especially trade among developed countries, cannot be explained by absolute advantage. 32 Why We Trade David Ricardo- the law of comparative advantages lIn 1817 Ricardo published his Principles of Political Economy and Taxation, in which he presented the law of comparative advantage. This is one of the most important and unchallenged laws of economics, with man practical applications. According to the law of comparative advantage, even if one nation is less efficient than (has absolute disadvantage with respect to) the other nation in the production of both commodities, there is still a basis for mutually beneficial trade. 33 Why We Trade Part 1 Text- 1 lTo hear most politicians talk, youd think that exports are the key to a countrys prosperity and that imports are a threat to its way of life. Trade deficitsimporting more than we exportare portrayed as the road to ruin. U.S. presidential hopefuls(乐观的,有前途的) Hillary Clinton and Barack Obama want to get tough with China because of “unfair” trading practices that help China sell products cheaply. lRepublican candidate Mitt Romney argues that trade is good because exports benefit the average American. Politicians are always talking about the necessity of other countries opening their markets to American products. They never mention the virtues of opening U.S. markets to foreign products. 34 Why We Trade Part 1 Text- 2 lThis perspective on imports and exports is called mercantilism （重商主义）. It goes back to the 14th century and has about as much intellectual rigor as alchemy(魔力), another landmark of the pre -Enlightenment era. lThe logic of “exports, goodimports, bad” seems straightforward at firstafter all, when a factory closes because of foreign competition, there seem to be fewer jobs than there otherwise would be. Dont imports cause factories to close? Dont exports build factories? 35 Why We Trade Part 1 Text- 3 lBut is the logic really so clear? As a thought experiment, take what would seem to be the ideal situation for a mercantilist. Suppose we only export and import nothing. The ultimate trade surplus. So we work and use raw materials and effort and creativity to produce stuff for others without getting anything in return. Theres another name for that. Its called slavery. How can a country get rich working for others? lShip of fools: Mercantilist thinking ought to have died out along with schooners, frigates, and clipper ships 36 Why We Trade Part 1 Text- 4 lThen theres the mercantilist（重商主义） nightmare: We import from abroad, but foreigners buy nothing from us. What would the world be like if every morning you woke up and found a Japanese car in your driveway, Chinese clothing in your closet, and French wine in your cellar? All at no cost. Does that sound like heaven or hell? The only analogy I can think of is Santa Claus. How can a country get poor from free stuff? Or cheap stuff? How do imports hurt us? 37 Why We Trade Part 1 Text- 5 lWe dont export to create jobs. We export so we can have money to buy the stuff thats hard for us to makeor at least hard for us to make as cheaply. We export because thats the only way to get imports. If people would just give us stuff, then we wouldnt have to export. But the world doesnt work that way. 38 Why We Trade Part 1 Text- 6 lIts the same in our daily lives. Its great when people give us presentsa loaf of banana bread or a few tomatoes from the garden. But a new car would be better. Or even just a cheaper car. But the people who bring us cars and clothes and watches and shoes expect something in return. Thats OK. Thats the way the world works. But lets not fool ourselves into thinking the goal of life is to turn away bargains from outside our house or outside our country because wed rather make everything ourselves. Self-sufficiency is the road to poverty. 39 Why We Trade Part 1 Text -7 lAnd imports dont destroy jobs. They destroy jobs in certain industries. But because trade allows us to buy goods more cheaply than we otherwise could, resources are freed up to expand existing opportunities and to create new ones. Thats why we tradeto leverage(影响,杠杆作用) the skills of others who can produce things more effectively than we can, freeing us to make things we otherwise wouldnt be able to afford. 40 Why We Trade Part 1 Text -8 lThe United States has run a merchandise trade deficit（赤字） every year since 1976. It has also added more than 50 million jobs during that time. Per capita income, corrected for inflation, is up more than 50 percent since 1976. The scaremongers who worry about trade deficits talk about stagnant wages, but they ignore fringe benefits (an increasingly important part of worker compensation福利) and fail to measure inflation（ 通货膨胀） properly. 41 Why We Trade Part 1 Text -9 lIn a recent Republican presidential debate, one of the moderators said that since 1989, the United States has lost 5 million jobs to foreign trade. He wanted to know what the candidates were going to do about it. lI have no idea how you measure that number, but the implication was that 5 million lost jobs over 18 years is a big number. Five million is a large number if were talking about the number of pennies I have to carry in my pockets. Its a big number if were talking about the number of people coming to my kids birthday party. But its a very small number when youre talking about job destruction and the job creation that follows in a dynamic economy. 42 Why We Trade Part 1 Text -10 lOn the first Friday of every month, the U.S. Bureau of Labor Statistics produces an estimate of how many new jobs are added to the U.S. economy. Thats the net change, the gains minus the losses. The bureau also estimates quarterly gross job changes, the absolute number of jobs created and destroyed. In the fourth quarter of 2006, there were 7.7 million jobs created and 7.2 million jobs lost. That happens every quarter when there isnt a recessionthats how you add 50 million jobs over three decades. 43 Why We Trade Part 1 Text 11 lFive million jobs lost over 18 years? Every three months, the U.S. job market more than makes up for those losses. lTrade is just one economic force that creates and destroys jobs. Tastes change. Innovation makes workers more productive. Some industries shrink. Others expand. Some disappear. New industries get created. Joseph Schumpeter called it creative destruction. He understood that it is the underlying mechanism that transforms our standard of living for the better. 44 Why We Trade Part 1 Text 12 lLets stop trying to scare people with the Chinese threat to our economy. The world would be a better and more peaceful place if we stopped measuring the trade deficit. But if were going to measure it, the least we can do is talk about it sensibly. lRussell Roberts is professor of economics at George Mason University and a research fellow at Stanford Universitys Hoover Institution. He is the host of the weekly podcast EconTalk at EconT and the author of The Choice: A Fable of Free Trade and Protectionism (Upper Saddle River, NJ: Prentice Hall, 2006), a primer on trade issues written in the form of a novel. 45 Why We Trade Part 1 Text 13 lThe Heckscher-Ohlin theory explains why countries trade goods and services with each other. One condition for trade between two countries is that the countries differ with respect to the availability of the factors of production. They differ if one country, for example, has many machines (capital) but few workers, while another country has a lot of workers but few machines. 46 Why We Trade Part 1 Text 14 lAccording to the Heckscher-Ohlin theory, a country specializes in the production of goods that it is particularly suited to produce. Countries in which capital is abundant and workers are few, therefore, specialize in production of goods that, in particular, require capital. Specialization in production and trade between countries generates, according to this theory, a higher standard-of- living for the countries involved. 47 Why We Trade Part 1 Text 15 lFrom Cakes to a Gold Medal lBetween 1944 and 1967, Bertil Ohlin was the leader of the Swedish Liberal Party, and between 1944 and 1945 he was also the Secretary of Trade of the Swedish Government. Bertil Ohlin died in 1979. 48 Why We Trade Part 1 Text 16 lBertil Ohlin was born in 1899. At the age of five, Bertil was very fond of calculating the cost of the various cakes his mother baked. Because mathematics was his favorite subject in school, he dec