International Economics

Chapter 1 Introduction Introduction What is International Economics About? International Economics: Trade and Money

The study of international economics has never been as important as it is now. At the beginning of the 21st century, nations are more closely linked through trade in goods and services, through flows of money, and through investment in each others’ economies than ever before.

Globalization

Economic Globalization International Trade Liberation

International Production Integration

International Financial Market Integration

Better or worse?

1-1 What is International Economics About? International economics deals with economic interactions that occur between independent nations. The role of governments in regulating international trade and investment is substantial. Analytically, international markets allow governments to discriminate against a subgroup of companies. Governments also control the supply of currency. There are several issues that recur throughout the study of international economics.

Balance between liberalism and Protectionism Exporter Importer Government Free Trade Protection

国际经济学的主要问题 1、学科性质：从成本和收益角度研究国家之间经济的相互依存关系，分析各国间要素流动的状况和原因，探讨国际经济政策的效应和作用。 2、学科内容： 1）International trade theory——研究为什么要进行国际贸易，贸易基础和所得 (1-7章） 2) International trade policy——考察贸易限制和新贸易保护主义的原因和效果(8-11) 3) Exchange rates and open-economy macroeconomics——汇率决定，汇率制度和政策，外汇市场的运行（12－17） 4）International macroeconomic policy——国际货币体系，经济一体化和货币一体化 （18－22）

Its role in the systematization of Economics Microeconomics Macroeconomics EC International Trade International Economics International Finance

When countries sell goods to one another, all countries benefit. The gain from trade Many people are skeptical about importing goods that a country could produce for itself.(P3) When countries sell goods to one another, all countries benefit. Trade and income distribution International trade might hurt some groups within nations. Trade, technology, and wages of high and low-skilled workers.

The Pattern of Trade (who sells what to whom?) Climate and resources determine the trade pattern of several goods. In manufacturing and services the pattern of trade is more subtle. There are two types of trade: Interindustry trade depends on differences across countries. Intraindustry trade depends on market size and occurs among similar countries.

pattern of trade Cloth Soybean IT Tulip Machine Oil Toy Tech

How Much Trade? Many governments are trying to shield certain industries from international competition. This has created the debate dealing with the costs and benefits of protection relative to free trade. Advanced countries’ policies engage in industrial targeting. Developing countries’ policies promote industrialization: Import substitution versus export promotion industrialization.

The Balance of Payments Some countries run large trade surpluses. For example, in 1998 both China and South Korea ran trade surpluses of about $40 billion each. Is it good to run a trade surplus and bad to run a trade deficit? Exchange Rate Determination The role of changing exchange rates is at the center of international economics.

International Policy Coordination A fundamental problem in international economics is how to produce an acceptable degree of harmony among the international trade and monetary policies of different countries without a world government that tells countries what to do. The International Capital Market There are risks associated with international capital markets: Currency depreciation National default

1-2 International Economics: Trade and Money International trade analysis focuses primarily on the real transactions in the international economy. These transactions involve a physical movement of goods or a tangible commitment of economic resources. Example: The conflict between the United States and Europe over Europe’s subsidized exports of agricultural products

International monetary analysis focuses on the monetary side of the international economy. That is, financial transactions such as foreign purchases of U.S. dollars. Example: The dispute over whether the foreign exchange value of the dollar should be allowed to float freely or be stabilized by government action

International trade issues Part I: International Trade Theory Part II: International Trade Policy International monetary issues Part III: Exchange Rates and Open-Economy Macroeconomics Part IV: International Macroeconomic Policy

五、本书的结构和学习方法 1、 结构 2、 学习安排 1）主要以学习正文为主，若要得到进一步的证明，深化讨论，可看附录 1、 结构 2、 学习安排 1）主要以学习正文为主，若要得到进一步的证明，深化讨论，可看附录 2）文中的例子和案例是为加强理解而设，需阅读，在讲授中还有中国的相关案例提供 3）关键词表中英文必须掌握，考试中概念题就在这范围内。 4）结合每章的小结做复习题，以掌握重点内容。 5）练习题的目的是提高应用能力，是考试的重点部分 6）要预习。

六、中文参考文献 本书中译本，2006，中国人民大学出版社 保罗。克鲁格曼,2001,克鲁格曼国际贸易新理论,2001,中国社会科学出版社 赵春明,2003:国际贸易学,石油工业出版社 蒙代尔,2003:蒙代尔经济学文集（第一卷）,中国金融出版社 杂志：经济研究，管理世界，世界经济,国际贸易问题，国际贸易，世界经济研究，世界经济文汇等。 主要网址：WWW.WTO.ORG. WWW.IMF.ORG. WWW.OECD.ORG. WWW.UNCTAD.ORG. WWW.BIS.ORG.

《国际经济学》教学基本要求 至少读两本书和一份专业期刊 写一篇文章 理论性文章 案例分析 文献综述 读书笔记 参加课堂讨论

Contact Me fangxia@zjgsu.edu.cn fangxia0715@tom.com Office Hours: Monday 10:00 – 12:00 in room 1849 and by appointment

Topic Financial Crisis

Low-income countries gain or lose in a globalized world?

China World 美国摩根斯坦利银行首席经济学家史迪芬.罗奇认为中国对世界经济增量的贡献远高于中国经济占世界GDP比重，原因是中国经济增长对世界经济增长有某种乘数效应，其原因是中国经济的对外开放程度非常高。他从两个方面来判断中国的经济开放度：一是中国的外贸依存度，目前已高达70%以上，远远超过日本(25%)、美国(20%)；二是外资利用度，除一些战略性领域外，中国基本都对外国实行开放，目前已累计利用外资6000亿美元，成为世界上对外资最开放的国家之一。目前美国经济增量的比率为30%，罗奇形象地将中国和美国比喻为波音747飞机的两个发动机。 世界贸易组织的相关研究表明，上世纪90年代，中国贸易增长度是5.7%，超过了日本的5.1%，仅低于美国的18.5%和欧盟扩大前的15国总体的12.2%。世界银行认为，中国经济快速发展对世界的最大贡献是促进了贫困人口的大幅度下降，如果不包括中国，1987年至1998年全球贫困人口增加8200万，而中国则减少800万。

China World

China gain or lose in a globalized world?

2.17万亿 2.56亿美元 年份 进出口总额（亿美元） 世界排名 GDP（人民币） 1950 11亿美元 1977 148 1978 206.4 32 1997 2696.7 10 2002 6208 5 102398亿 2003 8512 4 116693.6亿 2004 1.15万亿 3 136515亿 2005 1.42万亿 182321亿 2006 1.76万亿 210871亿 2007 2.17万亿 246637亿 2008 2.56亿美元 300670亿元

Figure 1-1: Exports and Imports as a Percentage of U. S Figure 1-1: Exports and Imports as a Percentage of U.S. National Income

Figure 1-2: Exports and Imports as Percentages of National Income in 1994

Exports and Imports as Percentages of National Income in 2007

International trade for World

World merchandise exports by major product group and region, 2006 Agricultural products Fuels and mining products Manufactures Total Fuels Iron and steel Chemicals Office and telecom equipment Automotive products Textiles Clothing World 944.5 2277.1 1770.5 8256.8 374 1247.8 1451.4 1015.9 218.6 311.4 Share in total exports 8 19.3 15 70.1 3.2 10.6 12.3 8.6 1.9 2.6 North America 151.6 221.5 151.2 1233.2 23.2 173.7 198.1 204.3 17.2 13 9 13.2 73.5 1.4 10.4 11.8 12.2 1 0.8 South and Central America 102.4 182.2 110.5 134.9 17.3 24.5 6.4 19.1 2.9 12.8 23.8 42.4 25.7 31.4 4 5.7 1.5 4.4 0.7 3 Europe 436 534 361.6 3890.3 177.1 743.2 427.1 549.8 82.8 107.1 8.8 10.8 7.3 78.4 3.6 11.1 1.7 2.2 Africa 32 249 225.1 71.2 7 11.3 2.4 5.4 1.6 9.8 68.5 62 19.6 3.1 0.4 2.7 Middle East 13.8 480.8 468.9 138.2 4.7 37.1 14.8 8.4 4.3 2.1 74.5 72.7 21.4 2.3 1.3 1.2 Asia 179.1 334.7 215.3 2683.2 105.8 235.8 801.4 223.5 104.4 162.8 5.5 10.2 6.6 81.9 7.2 24.4 6.8 5

International trade for the world Import Export

Appendix: A review of International Trade Before 15 century 15 century- 16 century 16 century- 19 century 1945－

Before 15 century Phonenica (Mediterranean Sea ) Rome Han Dynasty Kushan Empire Crusades

15 century- 16 century Age of Discovery Portugal Spain Netherlands France England

16 century- 19 century Industrial Revolution the Age of Machines

Appendix:International Trade Theory before the Ricardian Model Mercantilist: keep the state prosperous by economic regulation David Hume Francios Quesnay Adam Smith

David Hume（ 1711-1776） deny the the inflow of gold specie could be sustainable——the Price-Specie-Flow Mechanism

Francios Quesnay (1694-1774) The leader of ‘ Physiocrats’（重农学派）

ABSOLUTE ADVANTAGE Adam Smith Absolute Advantage A country has an absolute advantage in a production of a good if it has a lower unit labor requirement than the foreign country in this good.(P15) A Numerical Example

Assume that we are dealing with an economy (which we call Home) Assume that we are dealing with an economy (which we call Home). In this economy: Labor is the only factor of production. Only two goods (say wine and cheese) are produced. The supply of labor is fixed in each country. The productivity of labor in each good is fixed. Perfect competition prevails in all markets.

The following table describes the technology of the two counties: A Numerical Example The following table describes the technology of the two counties: Country Cheese Wine A 1 hour per pound 2 hours per gallon B 2 hours per pound 1 hour per gallon

Gain Cheese Wine P C A 1 B 如果cheese产品和wine产品以1：1的比率交换 A国 3 2 B国