HND经济学2报告.doc

IntroductionIm an Export Brand Manager, in this report I will analyze 15elements of the external environment in order that Board of Directors can, with my assistance in the future, develop a marketing plan for the launch of a new product.Three gains from world tradeFirstly, the world out-put will be increased. The supply and demand will be improved the companys productivity. The tendency of globalization brings the firms more opportunities to gain the labor, resources, contracts and new technology. Such as some international express company, they have many departments all over the world, and they need lots of staffs to work. And some international airline company, they are constantly researching new technology to reduce the cost and increase the profit.Then there are so more and more competitions that the price of the product might fall, the consumers could get more choices and cheaper goods. Such as McDonalds and KFC, the services are better and better, more convenient and quick; Apple and Nokia, new product constantly made, and cheaper price.In addition, the most important is the international trade can generate economic growth. Companies will aggrandize its sales and profit by free trade. For satisfying the global market, the producers need more resource, labor and capital. It direct result in improving the material market, finance market, and may decline the unemployment rate. Such as Carrefour market, it is famous for providing lots jobs in china; and security companies, need more capital and make much money.Free tradeFree trade, also called international trade, is defined that no barrier to goods and services exchanged between counties. Then international trade would bring more goods and better services to the place where need it. And the selling price would be the economists price, above the cost, not dumping. For example, China and South Africas countries have free trade in education, science & technology, environment protection, labor, social security, IPR, investment and promotion, mineral and industry. This agreement has promoted the free trade successful between China and the countries.Absolute and Comparative AdvantageAbsolute advantage means the ability of a particular person or a country to produce a particular good with fewer resources than another person or country. Each country has an absolute advantage in producing these single commodities. Comparative advantage refers to the ability to produce a particular good at a lower opportunity cost. Opportunity cost is defined as the cost of choosing a good or service measured in terms of the next best alternative given up. A country has a comparative advantage in producing a good if the opportunity cost of producing that good in term of other goods is lower in that country than it is in other countries. Example: China and Japan have following production possibilities for two commodities, cars and computers; assume that all the resources owned by each country are same.ComputerCarsJapan20000200000China10000150000By the table we can see that Japan has an Absolute advantage in both commodities. And it has much greater for cars. But we can find that we can buy two computers in China and we can only buy one computer with the same cost in Japan, so China has a comparative advantage in computer. (Japan has the opportunity cost of tractor is 200000/20000, China has 150000/10000)ProtectionismProtectionism is the economic policy of restraining trade between nations. For protecting domestic employment, the countries have a duty to maintain employment in domestic industries and try to move expenditure from foreign to domestic products; for protecting industries, countries need to nurture an industry which is showing promise of growth and to become a major player, while it grows to become large enough and competitive enough to match foreign firms which are already enjoying economies of scale. Example: In June.2004, the United States government in its foreign economic and trade activities through the new agricultural bill, will be in the next 8 years a large increase in the agricultural product export subsidiesIn January, 2009, American government settled a policy that only the American steel can be used in America. The American government tended to use this policy to reduce the loss in financial crisis and it helps the steel workers to keep their jobs. In this example, protectionism protects the domestic lower-skilled labor and domestic industries.Barriers to tradeIt is defined as protecting a countrys own industries, the country which in adverse side needs to find some ways to be barriers to limit the import products. It has two methods - tariff and non-tariff barriers.Non-tariff barriers have been actions such Quotas, embargoes, exchange control and import deposits. Probably the best known of these is the quota. This is a physical limitation on the quantity of import. Quota is a physical limitation on the quantity of imports which had been acknowledged by local laws. Usually the importers need to apply to pay for a license to sell goods. For instance, in recent years, our country each year about 40 billion dollars by foreign export all kinds of technical barriers to trade restrictions, of which a large part has clearly trade protectionism properties. Chinas entry into the WTO, foreign all kinds of technical barriers to trade is on. Can say, technical barriers to trade in our country had the trade barriers is one of the most. Among them, the most is the developed countries with its advanced technology advantage; improve the technology threshold, to limit developing countries products into their marketTariff barriers is to use high import duties on various kinds of imported and to the surtax, to limit and prevent foreign goods imported a method. For example, in October 1, 2010 the Russian government raised the expropriation tariff for the cars import in the next nine months. The import cars price will be increased to be WP adds the tariff, since the price is increasing, the sales of the import cars must fall down. The customers might choose the Russian car instead of import cars since it is cheaper.The role of the WTO in free tradeThe World Trading Organization (WTO), which was established as a Multilateral Trade Organization covering goods, services and intellectual property rights. The world trade organizations function including management function, the organizational function, coordinating functions, provide function, regulatory function. The world trade organization aims to establish a complete, more energetic and permanent multilateral trading system. And the world trade organization has the legal person status, and its members in mediation have higher authority dispute and effectiveness. For example, the United States and the European Union subsidies their farmers to the tune of some 300 billion Uk dollars annually of which the European Unions share is some 54 billion dollars annually. And since China joined in WTO, it had developed very fast and its economic level is improving.The role of the EU in promotingThe European Union, hereinafter referred to as the European Union, headquartered in Brussels, Belgium, EU stands for European Union and is an economic union, which aims to abolish tariffs and quotas among members, common tariff and quota system, restrictions on factor movements and harmonization and unification of economic policies and institutions. It draws out regulations, monitors member states, solves disputes and problems among member states and negotiates with other countries or international organizations on the behalf of EU members. For example, The European Union promote economic and trade cooperation with China, according to statistics, in 1997, Chinas trade with the EU countries amounted to $ 43 billion, whereas in 1999 amounted to $ 55.7 billion.The balance of PaymentsIt is the record of all financial transactions between a country and the international economy. It consists of three parts, current account (measuring trade in goods and services), capital account (measuring capital flows into and out of the country) and financial accountThe general trends in UKThe current balance deficit is usually in the past 30 years. British recorded current-account deficit in every year since 1984. From 1984 to 1989, the current account deficit steadily increasing reached a high of 25.5 billion pounds, equivalent to-4.9% of the gross domestic product (GDP). From 1990 to 1997, the current account deficit down to a low of 1 billion pounds. Between 1998 and 2006, the current account deficit widened sharply, peaking at 43.8 billion pounds. This is when a record cash use only equal to the gross domestic product (GDP)-3.3%. In the past two years, have a reduce the current account deficit-in 2008 it has now reached 25.1 billion, equivalent to 1.7% of GDP.The relationship between exchange rates and the balance of paymentsTrade balance refers to a country in a particular year, domestic and foreign trade into total export of basically equilibrium. Exchange rate is the price of one currency in terms of other currencies. The influence of it will depend on the balance of international payments, the relation between the how and the value of other currencies will change. As appreciation (devaluation) will become more cheap exports abroad, but the state had to spend more money to imports, but the goods and services will be the international cheap, lead to more goods acquired business. If the exchange rate to rise and then national goods and services needs may suffer from overseas may fall. If demand remains the same but then the value of exports will rise and current account balance to be strengthened.Under other things being equal, price drop of the pound, the United Kingdoms exports will increase, on the contrary, Sterling price increases, the United Kingdoms exports will be reduced.Advantages and disadvantages of the single currencyFor there are both advantages and disadvantages to join EU, so the UK is still not one members of EU. Advantages: the single currency reduces the exchange rate uncertainty because people dont have to convert money from one currency to another when purchase goods. It may produce a great transparency.Disadvantages: After the single currency has been used, the countrys monetary policy will determined by the supranational central bank and not by the domestic central bank. A country may lose the independent monetary policy if it joins the single currency.Effects on individuals and business of the EuroThe single currencys impact on companies: one of the main benefits is cancelled bank transactions costs that companies reducing transaction costs and reduce debt level. At last the company gets a bigger profit. The other hand, a single currency will affect national differences in price levels will be reduced. Because the price differences will lead to carry these low flow regions of high commodity prices, prices in the cross-regional euro-line. This will also result in increased competition between enterprises, greater pressure on enterprises.From the individuals point of view, Britain and some other countrys consumption level is high, cheap Labor force could lead to enterprise outsourcing, the surplus labor force, reduce employment, go against the British.Characteristics of a LDCDeveloping countries refers to the original backward economy, is in from the traditional to the modern economic development process of economic excessive in the country. There are characteristics of a LDC below:1. Low standard of living, in developing countries, most peoples living level is very low.2. Population growth and heavy support burden3. High levels of unemployment and low employmentAccording to the world development report 2003, the income groups according to 2002 gross national income per capita division, use the world bank chart and calculation method. 2003 year Chinas gross national income per capita $1100, now, China still belong to LDC.Problems facing a LDCThere are two fundamental problems result in less developed countries poverty. Less developed countries inadequate system of Government, administrative loose and low administrative efficiency, leading to Central Government policies, laws cannot be implemented effectively, thus affecting the modernization of the State. For example the indebtedness of Angola keeps increasing year on year. This makes Angola almost impossible to borrow more. They borrow a huge amount of money to develop their economy, purchase foreign goods and service. However, the high interest or other factors make debts become a great stress on LDCs. They are in the trip of debts, which prevent the development of their economy.And there is a long war, the countries can not be developed. For example, the countries in the Middle East are LDC. Impacts of multinationals on LDCs and NICsMultinational company, the beginning of the 70 s, the United Nations economic and social council formed by the famous people attend group, a comprehensive survey of the multinational companys various standards and definitions in 1974 after a resolution, decided to the United Nations the unity multinational company the name. Multinational companies in developed countries the influence of foreign tradeThe development of multinationals to the post-war developed country foreign trade played a great role. These effects in performance, that the developed countries of the products can be through foreign direct investment in the host country and way of production sales, thus bypass the barriers to trade and improved its product competitive ability; From the point of view of raw materials, energy, reduce the developed country to developing country depend on; Also makes the developed countries of the product smoothly into and using