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Chapter 1 An Introduction to International Trade
The exchange of goods and services arises simply because countries differ in their demand for goods and services and in their ability to supply them. There are some special problems in international trade including cultural problems, monetary conversion, etc. International trade has played an important role in the world history as well as in sustaining and modernizing the Chinese economy.
§ 1.1 The Need for International Trade
国际贸易的产生
I . Why does international trade take place? 国际贸易进行的原因
Definition:
International trade refers to the exchange of goods and services between nations.
It is also known as foreign trade or overseas trade. Why does international trade take place? There are many reasons.
Resources reasons 资源匮乏
No nation has all of the commodities that it needs. 没有一个国家拥有需要的全部产品。
Some countries are abundant in certain resources, while other nations may be lack of them. For example, Colombia and Brazil have the ideal climate for growing coffee beans. The United States is a major consumer of coffee, yet it doesn’t have the climate to grow any of its own. Consequently, this has made Colombia and Brazil big coffee exporters, and the United States big coffee importer. Raw materials are scattered around the world. Large deposits of copper are mined in Peru and Zaire, diamonds are mined in South Africa, and petroleum is recovered in the Middle East. Countries that do not have these resources within their own boundaries must buy from countries that export them. In short, the uneven distribution of resources around the world is one of the most basic reasons why nations trade with each other.
2. Economic reasons 经济原因
With the development of manufacturing and technology, there arose another incentive for nations to trade, i.e. economic benefits. In addition to getting the products they need, countries also wish to gain economically by trading with each other. China has been able to exp
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