经济学考试.doc

Benefits for trading internationallyTakes advantage of international trade technology Knowledge and technology has become the worlds current economic growth is the most important driving force. In international trade, technology trade and service trade is growing rapidly, goods trade in high-tech products the share of larger and larger.Increase sales and profits Through the international trade can increase sales and profits of all countries, both developed and developing countries can get the national wealth growth, are the beneficiaries of economic globalizationIncrease people life level and quality Through international trade, we can get the resources and commodities native lack, also, we can output native surplus products to have need country. Thus improving productivity, improve the peoples income, improving living standards and quality of life. Q2: Free trade Free trade is a system of trade policy that allows traders to trade across national boundaries without interference from the respective governments. According to the law of comparative advantage the policy permits trading partners mutual gains from trade of goods and services.Example of free trade For example APEC, APEC s mission is to first, for the common interests of the people in this region and maintain a economic growth and development. Second, promote economic interdependence between members. Third, strengthen open multilateral trading system. Fourth, reduce regional trade and investment barriers.Q3: Absolute and comparative advantage Absolute advantage: The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service. comparative advantage: The name for the ability of one business entity to engage in production at a lower opportunity cost than another entity. Example for Absolute and comparative advantage Example for Absolute advantage Costa Rica absolute advantage produce coffee, France absolute advantage produce pharmaceuticals. Costa Rica may have enjoy an absolute advantage in coffee, and France in pharmaceuticals. Therefore, it would be sensible France import coffer from, and export pharmaceuticals to , Costa Rica.琰茞TractorsWoolCountry A1001000Country B50 750Opportunity cost ratio For country A the cost of 1 Tractor is 10 bales of wools,i.e. 1000/100For country B the it is 15, i.e.750/50 Tractor, Country A is cheaper than in Country B, Country A has a comparative advantage in Tactor.Wool is cheaper in Country B than in Country A, Country B has a comparative advantage in wool.Q4: Protectionism Protectionism is the policy of protecting domestic industries at the expense of global trade, by means of tariffs, subsidies, import quotas, or other restrictions or handicaps placed on the imports of foreign competitors.Example for Protectionism (a) The European Union has announced that it would impose duties of up to 19.4 percent and 16.8 percent for imports of Chinese and Vietnamese leather shoes, considering the move as a trade protection measure for shoemakers in East and South Europe. Protectionism (b) 201 Steel case in March 2002, the United States to the European Union, Japan and other G8 exports of steel products damaged the U.S. steel industry on the grounds, the use of 201 , announced to levy a variety of 3-year steel import tax rate The total level of 30%. Why ues it protectionism is that it promotes development of the basic capabilities of countries to produce goods and services efficiently by providing them with a protected market during the period when they are developing. Secondly, use protectionism can protect national enterprise and national industry. Q5: Two barriers Specific Tariffs - A fixed fee levied on one unit of an imported good is referred to as a specific tariff. This tariff can vary according to the type of good imported. For example, a country could levy a $15 tariff on each pair of shoes imported, but levy a $300 tariff on each computer importedVoluntary Export Restraints (VER) - This type of trade barrier is voluntary in that it is created by the exporting country rather than the importing one. A voluntary export restraint is usually levied at the behest of the importing country, and could be accompanied by a reciprocal VER. For example,Brazil could place a VER on the exportation of sugar to Canada, based on a request by Canada.Canada could then place a VER on the exportation of coal to Brazil. This increases the price of both coal and sugar, but protects the domestic industries.Q6: World Trade Organization The role of WTO is to ensure that there is peaceful and mutually benefiting business atmosphere. Trading amongst each other can cause minor unwanted rifts between parties concerned and if left to sizzle can cause major problems on the International front. In the event such problems are detected or voiced, the WTO can step in and take precedence over the disputes by holding talks, discussions and finding ways of solving the International trading problems amicably For example, the iron and steel industry in the United States malicious import duty, harm to the European Union, Japan and seven other national interests. Countries in the WTO to resolve trade disputes. WTO against U.S. trade protectionism, and to ask the U.S. to reduce import tax, equal to trade.Q7: The role of the EU in promoting trade Firstly, In international trade relations, the EU will eventually as important a extremely appeared in future multipolar world as European integration, the EU continues to advance the role in world affairs will be more prominent, and will become the multipolar world with strong poleSecondly, promote economic development. The construction of a large market for the economic development of member countries expanded market size, provides a good market environment, the formation of the great driving force of economic development, thus preparing the conditions for economic integration .Q8: The balance of payments The main components of the balance of international payments are:the current account;the capital account; the financial account; Q10: The balance of payments affected by exchange rates The Balance of Payments: This is a measure of the extent of trade between the United Kingdom (UK) and the rest of the world. This trade is referred to as imports and exports, which in balance of payments accounting is looked at in terms of the change of ownership of resources linked to the payment for the change of ownership. In theory, if the exchange rate weakens, this would be a boost to UK exports whereas import prices rising would dampen demand for imports. As a result the trade deficit would narrow. But we need to distinguish between the amount traded (volume) and the payments or earnings from trade. If the price elasticity of demand for imports was inelastic, then an apparent rise in the price of imports of, say 10%, would lead to a fall in demand of less than 10%, total expenditure on imports would actually rise, and assuming other things remained equal, the trade deficit would get worse not better! The activity will try to help you make sense of some of these relationships.Q11: Advantage and disadvantage of the single currency for the UK Two advantages: Firstly，because the European economy and the UK economy is very close links between, joining the euro, economically speaking, is very beneficial to Britain .Secondly，If Britain joining the euro, such as London whole financial transactions with euros to settlement, all NaYingGuo London will have may soon become the worlds first big financial center, may soon more than New York, so the British economic and financial speaking is huge ascensio . Two disadvantage: First British is very proud. Sterling was once the worlds most important currency, the symbol of Britains global hegemony from emotional, they dont too willing to give up pounds . In the second place, from British governor speaking, give up pounds, then the eurozone join the euro will soon more than dollars area to become the worlds largest currency. The dollar is a huge threat area.Q12: Effects on individuals and businesses of the single currency Two effects on individuals : Benefits is that the British people will get extra subsidies, but they dont have to exchange money cost! Harm is, Ireland would many people not to work in Britain, because the base salary, 1 pound = 1.15 euros, such Irish people would back to their country. Two effects on businesses: On the one hand, some company will gain from monetary unification huge and other enterprise will encounter more difficult. To be engaged in the software, financial and market advertising companies would be in a product and business a lot on growth. On the other hand, all of the enterprise must pay these one-time conversion cost, including conversion computer system, financial account, update published euros, establish a legal contract euro price list, check cash management procedures, training employees, and payment processing euro business euro salary. Q13: Two characteristics of LDCsEducation problem, public education is growing rapidly, but cost remains low per capita possession, developing countries to education development though a lot of effort, but havent fundamentally change the basic condition of education backward. Bangladesh has very serious education problem. Bangladesh the obligation education of fixed number of year just to grade school ,and the unemployment rate will exceed 50%.the employment problem, torture is a developing economies of large-scale human resource is subjective. Because the subjective idle, the importance and the seriousness of the employment problem on development economics as a central proposition of economic development to study. According to the Mail news reported in 2009, the world the oecd says: for many developing countries, where the unemployment rate will exceed 10%Q14: Two current issues face LDCsFirst least-developed countries with economic development exists serious environmental problems, such as economic development very outstanding Bangladesh, because of land degradation caused by the cultivated land is still very serious, causing many new problems, such as automobile pollution, etc. The second is some underdeveloped countries fast population growth in this problem, such as India, India in the world as the second most populous countries, economically and very undeveloped, population pressure already visible. Owing to the