INTERNATIONAL ECONOMICS Carl Liedholm Professor Economics INTERNATIONAL TRADE
- Slides: 34
INTERNATIONAL ECONOMICS
Carl Liedholm Professor, Economics
INTERNATIONAL TRADE BASIC FACTS
Which of the following is true about the United States and its international trade role? a. The world’s largest exporter in absolute terms b. A relatively “closed” economy (X/GDP low) c. Its largest trading partner is China d. Imports more gasoline than it exports e. None of the above
WORLD EXPORTS – 2011 MERCHANDISE 1) 2) 3) 4) 5) U. S. GERMANY JAPAN NETHERLANDS $ 1. 48 Trillion $ 1. 47 Trillion $ 0. 82 Trillion $ 0. 66 Trillion
OPENNNESS MEASURE EXPORTS/GROSS DOMESTIC PRODUCT
EXPORTS/GDP 2011 THAILAND KOREA GERMANY CHINA 31% WORLD AVERAGE JAPAN 77% 56% 50% 29% 15%
U. S TRADING PARTNERS
U. S TRADING PARTNERS (Percent of US Exports) 2011 1)_______ MEXICO CHINA JAPAN U. K. GERMANY 13 % 7% 5% 4% 3%
WHAT GOODS? Exports Imports
WHAT GOODS? UNITED STATES EXPORTS –BOTH MANUFACTURED AND PRIMARY IMPORTS – BOTH MANUFACTURED AND PRIMARY JAPAN EXPORTS – MANUFACTURED IMPORTS - PRIMARY PRODUCTS CANADA EXPORTS – PRIMARY PRODUCTS IMPORTS – MANUFACTURED PRODUCTS
Which of the following is true about the United States and its international trade role? a. The world’s largest exporter in absolute terms b. A relatively “closed” economy (X/GDP low) c. Largest trading partner is China d. Largest trading partner is Mexico e. None of the above
GLOBALIZATION *
Exports GDP
GROWTH SINCE 1950 WORLD TRADE 25 X WORLD OUTPUT 8 X
Recent Period 2007 2008 2009 2010 2011 2012 6% 2% -12 % +13. 8 % + 5. 0 % + 3. 8 % (World Bank)
GLOBALIZATION NOT A NEW PHENOMENON Expansion of Roman Empire Voyages of Discovery End of Napoleonic Wars
PRIMARY DRIVING FORCES OF RECENT WAVE OF GLOBALIZATION 1. REDUCTION OF TRADE BARRIERS *
Trade and welfare slide 19
Effect on U. S. Household $1 Trillion/year $10, 000/ household per year
2. TECHNOLOGICAL CHANGE
3. EMERGENCE OF NEW COUNTRIES 1) 2) 3)
EFFECT ON JOBS
EFFECT ON TRADE BALANCE IMPORTS NOW GREATLY EXCEED EXPORTS
U. S. FOREIGN TRADE DEFICIT 2011 CURRENT ACCOUNT DEFICIT - $ 465. 9 Billion 3. 1 % of GDP
INTERNATIONAL ACCOUNTING • • CURRENT ACCOUNT • -$465 Billion + • FINANCIAL ACCOUNT +$465 Billion (Liability to Foreigners) = 0
PROBLEM ? • • FINANCE OR TRADE? JOINTLY DETERMINED CAPITAL SAVINGS GLUT? 5% GDP RED FLAG
5% 2011 3. 1% 2012(3) 2. 7%
INTERNATIONAL FINANCE *
The coins used in colonial America were primarily: : a. b. c. d. e. British (Shillings and Pounds) Spanish (Pieces of Eight) German (Thalers) French (Ecus) Dutch ( Ducatoons)
EXCHANGE RATE PRICE (RATIO)OF ONE CURRENCY IN TERMS OF ANOTHER L/$ CURRENCY ON BOTTOM KEY
EFFECT OF FALLING DOLLAR MAKES U. S. FIRMS MORE COMPETITIVE INTERNATIONALLY LOWERS PRICE OF U. S. GOODS ABROAD INCREASES PRICE OF IMPORTED GOODS
- Richard liedholm proff
- Promotion from assistant to associate professor
- Trade diversion and trade creation
- Trade diversion and trade creation
- Trade diversion and trade creation
- The trade in the trade-to-gdp ratio
- Fair trade not free trade
- Trade diversion and trade creation
- Tramp shipping and liner shipping
- Triangular trade video
- Trade off and opportunity cost
- What is trade off in economics
- What is ipe
- International specialization and trade
- International trade and foreign exchange
- Mercantilism and triangular trade
- Current theory of international trade adalah
- International trade theory
- International trade theory
- International trade theory
- Firm based trade theory
- Modern theory of trade
- Importance of international trade
- Dynamic environment of international trade
- Certificate in international trade and finance citf
- Embargo definition
- Chapter 4 global analysis
- Kravis theory
- Local guide program
- Nature of international trade
- Disadvantages of international trade
- Credit risk in international trade
- Trade ingredients
- Advantages of international trade
- Trade vocabulary