Chapt 2-theory of international trade.pptVIP

 Traditional theory of international trade Adam Smith’s Theory of Absolute Advantage Main views When one nation is more efficient than (or has an absolute advantage over) another in the production of one product but less efficient than (or has an absolute disadvantage with respect to) the other nation in producing a second product, then both nations can gain by each specializing in the production of product of its absolute advantage and exchanging part of its output with the other nation for product of its absolute disadvantage. By this process, resources are utilized in the most efficient way and output of both products will increase. A policy of laissez-faire and free trade is strongly advocated. Illustration of absolute advantage But if one nation has absolute advantage for both commodities, how to do? The theory of comparative advantage Background Corn Laws Main belief Law of Comparative Advantage--- Even if one nation is less efficient than (has an absolute disadvantage with respect to ) the other nation in production of both products, there is still a basis for mutually beneficial trade. The first nation should specialize in production of and export the product in which its absolute disadvantage is smaller( comparative advantage) and import the product in which its absolute disadvantage is greater (comparative disadvantage) Illustration of comparative advantage John Stuart Mill,1806—1873 对比较优势理论进行补充，用两国商品交换的比例的上下限解释互惠贸易的范围，用贸易条件说明贸易所得的分配。 比较成本（优势）确定互惠贸易的范围 国际市场的商品交换比例越接近于对方国内市场，对本国越有利，反之亦然。 Infant Industry Augment Background and representatives Alexander Hamilton the first Secretary of the Treasury after independence and then played a pivotal role in defining the governmental mechanisms for managing the national economy Report on Manufactures (December 5, 1791) 1816年通过了第一个保护性关税法案 南北战争后，汉的思想得到了采纳，美国从此走上了高关税保护工业的道路（直至二战）。1890年《麦金利关税法》将整体关税率从38％提高到49.5%。 高关税有力地保护了美国工业的发展。内战以前，美国还是个农业国，农产品占全部商品生产的一半以上。但内战结束后的不到半个世纪里，美国工业产值超过农业产值。到1900年时，美