Wordl-Scholars-Cup复习资料!.docx

The Sounds of SpringAmanda Ellis Released on 7th April of 2011.Wind in the tree, busy bees, birds in the treesFundamentals of International TradeSupply and Demand determine price. As supply goes up, price goes down. As demand goes up, price goes up (if supply remains constant). Increased prices imply higher profits. Higher profits generally motivate other competitors to provide the same good. Supply goes up, prices go down. If prices go down enough, competitors will go out of business, and supply will go down. Prices will begin to rise. In the end, there tends to be enough supply, and enough suppliers, to meet demand at prices that guarantee some but not overly high profits. This magical equilibrium is Adam Smiths Invisible Hand (invisible hands are one reason economists are famous for and can get away with saying “on the one hand.). This equilibrium is the cornerstone of faith in liberal economics. Liberal in economics means belief in free trade and unregulated markets. Natural equilibrium of markets depends on two core assumptions. The first is that there are multiple suppliers. Lack of multiple suppliers erodes competition, raises prices, reduces efficiency, and is called oligopoly or monopoly. The second is that consumers have good information and can make informed decisions about products. Competition wouldnt work if you didnt know the same thing was available for cheaper around the corner.Why is trade beneficialDavid Ricardos Comparative Advantage: Comparative advantage works when goods are produced by the parties that will trade with different rates of productivity. This means that one party has a comparative advantage in producing one good, while another party can better produce another good. Here is an example: I make 2 bottles of wine or 1 cork per unit of labor You make 2 corks or 1 bottle of wine per unit of labor Thus we can make 2 corked bottles each for 4 units of labor each. BUT, if you make 6 corks and I make 6 bottles for 3 units of labor respectively, and IF we trade, then we can each end up with 3 corked bottles for the same labor. No trade: 2 bottle each. Trade: 3 bottle each. Trade essentially expands our production-possibility frontier Note that when trade is possible, it is never worth my time to make corks, and not worth your time to make wine. We Specialize. We become interdependent. Here is a neat comparative advantage trick: it can be worth my while to trade, even if I make both things better, if the price is right: I make 2 bottles of wine or 3 corks per unit of labor, but wine sells for 2 dollars and corks for .50. Per unit of labor I can make 4 dollars or 1.5 depending on what I produce. You make 2 corks per unit of labor and no wine. You can earn 1.00 per unit of labor. (ie youre the poor inefficient country, Im the rich productive one - sorry)A corked bottle of wine sells for 2.50. With five units of labor and without trade, I can make 6 bottles worth 15.00 (3 lab units to make 6 bottles; 2 units for 6 corks). You can make 10 corks worth 5.00. If I make only wine, and no corks, I can make 10 wines worth 20.00 for the same five units of labor. But I have no corks. Invent trade. Let me exchange 2 bottles for 8 corks (with equal values of 4.00). I now have 8 corked bottles worth 20.00 (instead of 15.00), for the same 5 units of labor. Meanwhile, you now have 2 corked bottles of wine (worth 5.00). I make $5, you at least have useable bottled wine. You could probably raise the price of corks and wed still profit. This sounds weird, but it helps explain a number of things: why economically advanced countries may no longer want to produce lower value items (textiles), why rich countries get richer (sometimes), and why attorneys might hire a secretary even if they can type faster than the secretary (they can earn more lawyerizing). Most importantly, this is the fundamental argument for free trade.Market imperfectionsIn addition to insufficient competition and incomplete or imperfect information, other market imperfections include: taxes, tariffs, regulations, quotas, sanctions, and so forth. These are “imperfections” because they affect the price of goods. “Imperfections” like taxes or environmental regulations may provide public goods. The cost of these goods is higher prices and perhaps reduced competitiveness.A Brief History of GlobalizationGlobalization involves the interplay of markets, technology and State, which are amongst the oldest and most distinctive human innovations. Exchange, the fundamental principle on which markets are organized, is known to exist in the most primitive human societies. Man is not the only living creature with the ability to store surpluses and live in complex societies controlled by chiefs consider the industrious ants and bees but he is unique in his ability to socially redistribute these surpluses through increasingly complex divisions of labor under the authority of the State.The saga of globalization is that of an unbound Prometheus, with surges in productivity and growth unparalleled in history as markets, technology and states are progressively freed from local demand and supply constraints. Although the term globalization has gained currency only recently, the forces driving this trend can be traced back to the end of the Middle Ages in Europe. Pre-modern societies, however, were above all else defined by localism and decentralization. Most people remained at their place of birth right through their lives. Migration was a one-way street to resettle in virgin territory in response to conquest, calamity or local demographic pressure. Religious experience was mostly limited to the local parish, with wider pilgrimages limited to a select few. Empires meant mostly march of armies over land, and were never transcontinental, with the notable exception of North Africa adjoining the Mediterranean. State power was a coalition of local power elites owing allegiance to a monarch who never had access to centralized administrative machinery. With near universal poverty a structural constraint on demand, markets were neighborhood-trading places, with long distance trade mostly limited to luxury goods for the small power elite. New ideas, information and technology spread slowly since transportation and communication were based on animal traction. Four distinct phases of globalization can be discerned in modern history. The first phase began in the sixteenth century with the passing of pre-modern localism, improvements in maritime technology leading to the great age of maritime exploration, discovery and mercantilism, the European Renaissance, centralizing tendencies associated with absolute monarchy and the emergence of modern nation states following the Peace of Westphalia of 1648, and the spread of the ideals of the American and French Revolutions from the eighteenth century. The second phase from the late eighteenth century was marked by the spread of the Industrial Revolution and vast improvements in human technology, inanimate traction, productivity and demand, which led to mass production and conveyance of merchandise goods and people, cross-border integration through bulk long-distance trade, colonial plunder, investment flows and empire during a phase of European imperial expansion which saw the flag follow trade across the globe. The Industrial Revolution opened up a rapidly widening income gap between Europe and America on the one hand, and the rest of the world on the other.The globalizing trend was halted by the two great wars of the twentieth century, and an autarchic anti-imperial nationalist interlude, which actually saw a decline in international trade and capital flows as a percentage of global GDP. Even as trade and flags disengaged, the per capita income between developed countries and the erstwhile colonies continued to diverge. During the third phase, merchandise trade resumed its triumphant march as the engine of hyper growth in East Asia from the 1970s. International trade/GDP ratios recovered to their late 19th century level by the last decade of the 20th century. But whereas the globalization thrust in the second phase in the nineteenth century involved, in the main, the export of mass-produced merchandise to the colonies, this time round the export dynamism came from the erstwhile colonies. This globalization thrust was led by transnational corporations (TNCs) that endeavored to disseminate international trade and modern technology to every flag on earth. Globalization arguably entered a frenetic fourth phase from the end of the twentieth century, in which developed and developing countries are becoming more equal partners in the flow of cross border trade and investment, as per capita income between the developed world and the developing world rapidly converge, galvanized by the awakening of the ancient sleeping giants, China and India. Merchandise trade is being swamped by invisible trade in services led by rapid technological advances in information technology, and volatile capital flows, that have become new engines of growth redefining human interface and old nation-state based economic, social, cultural and political paradigms. Contradictions between TNCs and sovereigns are growing in several areas such as trade, investment, labor, agriculture and infrastructure policies. Nation states, in the form they emerged in the early modern period, are losing their raison dtre as they are increasingly constrained in the conduct of foreign policy in a unipolar world where conventional war is yielding to stateless conflict and terror; resolving the intertwined energy-food-security crisis; freeing resources for the intertwined ageing-health-welfare crisis; further extending the welfare benefits of trade; and use of time-tested macro-economic fiscal and monetary tools to manage external shocks. The globalizing impulse can be seen as ever-widening circles trending towards greater homogeneity, from locality, to nation states to regional identities like pan European, pan-Asian, Pan-Arab and pan-American, the long-term logical corollary of which is a unified market, a unified culture, a unified language, a unified liberal-democratic state, or what V S Naipaul famously termed a universal civilization. Rapid strides in information technology are spawning new virtual relationships, cosmopolitan identities and communities that compete and conflict with those forged within the confines of the nation state. The interesting issue, however, is whether this process of cultural entropy would, over the long run, abate the clash of civilizations underscored by a long line of eminent historians from Herodotus to Arnold Toynbee to Samuel Huntington.MultinationalsA Multinational corporation (MNC) or multinational enterprise (MNE) is a corporation that is registered in more than one country or that has operations in more than one country. It is a large corporation which both produces and sells goods or services in various countries. It can also be referred to as an international corporation. They play an important role in globalization. The first multinational company was the British East India Company, founded in 1600. The second multinational corporation was the Dutch East India Company, founded March 20, 1602, which would become the largest company in the world for nearly 200 years. Special Economic Area & Free Trade AreasA free trade zone (FTZ) or export processing zone (EPZ), also called foreign-trade zone, formerly free port is an area within which goods may be landed, handled, manufactured or reconfigured, and reexported without the intervention of the customs authorities. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to the prevailing customs duties. Free-trade zones are organized around major seaports, international airports, and national frontiersareas with many geographic advantages for trade. It is a region where a group of countries has agreed to reduce or eliminate trade barriers. Free trade zones can be defined as labor intensive manufacturing centers that involve the import of raw materials or components and the export of factory products. The worlds first Free Trade Zone was established in Shannon, County Clare, and Shannon Free Zone. This was an attempt by the Irish Government to promote employment within a rural area, make use of a small regional airport and generate revenue for the Irish economy. It was hugely successful, and is still in operation today. The number of worldwide free-trade zones proliferated in the late 20th century. In the United States free-trade zones were first authorized in 1934.Most FTZs located in developing countries: Brazil, Colombia, India, Indonesia, El Salvador, China, the Philippines, Malaysia, Bangladesh, Pakistan, Mexico, Costa Rica, Honduras, Guatemala, Kenya, Sri Lanka, and Madagascar have EPZ programs. In 1997, 93 countries had set up export processing zones employing 22.5 million people, and five years later, in 2003, EPZs in 116 countries employed 43 million people. Corporations setting up in a zone may be given tax breaks as an incentive. Usually, these zones are set up in underdeveloped parts of the host country; the rationale is that the zones will attract employers and thus reduce poverty and unemployment, and stimulate the areas economy. These zones are often used by multinational corporations to set up factories to produce goods (such as clothing or shoes).Free trade zones in Latin America date back to the early decades of the 20th century. The first free trade regulations in this region were enacted in Argentina and Uruguay in the 1920s. The Latin American Free Trade Association (LAFTA) was created in the 1960 Treaty of Montevideo by Argentina, Brazil, Chile, Mexico, Paraguay, Peru, and Uruguay. However, the rapid development of free trade zones across the region dates from the late 1960s and the early 1970s. Latin American Integration Association is a Latin American trade integration association, based in Montevideo.Free Trade Zones are also known as Special Economic Zones in some countries. Special Economic Zones (SEZs) have been established in many countries as testing grounds for the implementation of liberal market economy principles. SEZs are viewed as instruments to enhance the acceptability and the credibility of the transformation policies and to attract domestic and foreign investment.In 1999, there were 43 million people working in about 3000 FTZs spanning 116 countries producing clothes, shoes, sneakers, electronics, and toys. The basic objectives of EPZs are to enhance foreign exchange earnings, develop export-oriented industries and to generate employment opportunities.Many in the economic development community and real estate development field have heard much about how the Foreign-Trade Zone program attracts firms of all types to FTZ designated industrial parks and property. Many Foreign-Trade Zone projects have been started with the philosophy of “establish it, and they will come”. The reality is that for FTZ Grantees to receive the economic development benefits they desire, the right choices in many areas must be made. The Foreign-Trade Zone Corporation will guide Grantees and developers so that the best choices are made so that the FTZ project maximizes its potential by attracting prospective companies as well as providing an avenue to providing the maximum benefit to existing companies in the area. One choice that Grantees are faced with is whether or not to expand a Foreign-Trade Zone or reorganize it using the Alternative Site Framework (ASF).In January 2009, the Foreign-Trade Zones Board adopted a FTZ Board staff proposal to make what it called the Alternative Site Framework (ASF) as a means of designating and managing general-purpose FTZ sites through reorganization. The ASF provides Foreign-Trade Zone Grantees with greater flexibility to meet specific requests for zone status by utilizing the minor boundary modification process. The theory of the ASF is that by more closely linking the amount of FTZ designated space to the amount of space activated with Customs and Border Protection; Zone users would have better and quicker access to benefits. When a FTZ Grantee evaluates whether or not to expand its FTZ project in order to improve the ease in which the Zone may be utilized by existing companies, as well as how it attracts new prospective companies, the Alternative Site Framework (ASF) should be considered. The ASF may be an appropriate option for certain Foreign-Trade Zone projects, but the decision of whether to adopt the new framework and what the configuration of the sites should be will require careful analysis and planning. Regardless of the choice to expand the FTZ project, the sites should be selected and the application should be drafted in such a manner as to receive swift approval, while maximizing benefit to those that locate in the Zone. Successful zone projects are generally the result of a plan developed and implemented by individuals that understand all aspects of the FTZ program.Role of International OrganizationsInternational organizations provide a common platform wherein representatives from different parts of the world can discuss and evolve solutions for contemporary issues. In common parlance, it is well known as intergovernmental organizations. The World trade Organization, European Union and Council of Europe are international Organizations to name a fewEvolution Of International OrganizationsThere was need to have a neutral forum where countries could participate and discuss problems that were of significance the world over. This gave rise to international OrganizationsRole Of International OrganizationsThe participating countries define the function of the International Organiz