1-An overview and introduction.pptVIP

Exercises I. Answer the following questions. 5. List three main international trade theories. What are their main arguments? I. the Absolute Advantage: In economics, absolute advantage refers to the ability of a particular person or a country to produce a particular good with less resource than another person or country. II. the Comparative Advantage refers to the ability of a person or a country to produce a particular good at a lower opportunity cost than another person or country. III. the Heckscher-Ohlin Theory refers to the belief that a country should choose what to produce and trade on the basis of the relative scarcity of labor, land, and capital. Exercises II. Case study. Unit cost calculated in terms of labor Britain Portugal Carpet 5 7 Wine 8 10 Question: The absolute costs of both products in Britain is lower than that in Portugal, why is there still trade between these two countries? LOGO Unit 1 Brief Introduction toInternational Trade International Trade Practice Learning Objectives Define international trade Understand the reasons, benefits and some basic concepts of international trade Review briefly the main international trade policy and theory Warming-up Listening Practice (5:05) Keeping good China-US trade relations ______. It’s _________ to strengthen US-China economic and trade ties. According to Miss Liao, _________ benefits from US-China trade _______ than China. Good and cheap Chinese commodities have not only ________of American people but also improved ________. The trade problems should be properly resolved by ________. Contents Related concept Barter Bilateral trade Multilateral trade Free trade Brainstorm: Provide your own definition of international trade. International trade, also known as world trade, foreign trade, overseas trade, import and export trade, is the fair and deliberate exchange of goods and services across international or territories. It concern