Unit 1 What is International Business.pptVIP

Unit 1 What is International Business The nature of International Business Words Mass-produce Mass production Equilibrium: Balance entrepreneur futures Cartel Monopoly The comparative advantage theory The basic theory David Ricardo (大卫 李嘉图)；John Stuard Mill（约翰·斯图亚特·穆勒 ） Differences in production possibilities lead to trading. Question: comparative advantage refers to the advantages based on the comparison between countries? Result of C.A Theory Specialization All win situation International Business Barriers Tariffs A tax on imported items, computed as a percentage of the import value; China imposes tariffs on automobiles, electronic equipment, cosmetics, etc; Nontariff barrier Import quota The maximum quantity of a product allowed into a country during a given period of time. Barriers Transportation Climate Stimulus : Colonialism Industrialization introduced; People educated; Dilemma; Business associations Cartel An association; To increase price; To limit production; To impose an embargo; OPEC; IBA;phosphate cartel; tin cartel, etc. The strength and drawback Protecting members’ interest; Losing foreign exchange; Promoting technology revolution; Harming free international trade; Hedge Commodity futures A contract to buy or sell a specified amount of a commodity or financial instrument at an agreed price at a set date in the future. ---/futures Why? Commodity future markets The London Metal Exchange; Commodity Exchange Inc; Chicago Board of Trade. * * The reasons for international trade The uneven distribution of natural resources International specialization Different Patterns of demand among nations Economies of scale Innovation or variety of style 比较利益论的进一步说明 1 2 6 4 小麦 W(蒲式尔/工时) 布C(码/ 工时) 英国 美国 表 4-2. 比较利益 分工前：美国在两种产品的生产上都处于绝对有利地位，英国在两种产品的生产上都处于绝对不利地位； 1 2 6 4 小麦 W(蒲式尔/工时) 布C(码/ 工时) 英国 美国 表 4-2. 比较利益 比较利益论的进一步说明 按比较利益分工：美国专业化生产小麦，英国专业化生产布；因为美国的小