商务英语unit过程稿.pptVIP

Unit 6 An Overview of International Business In this unit, we will learn, Trading Theories; Trading Policies What is International Trade International trade is the buying and selling of goods and services between different nations. It involves the exporting of goods and services from sellers/exporters of one nation to the buyers /importers of those goods and services of another nation. Trade Surplus and Trade Deficit China has become United States’ third-largest trading partner. Between 1998 and 2007, US imports from China rose from $71billion to $321billion, while US exports to China climbed from $14 billion to $65 billion. US has a larger and larger trade deficit with China and United States Congress wrestles over the proper tactics to shape US-China relations. World Trade History International trade has been in existence for thousands of years. After the Industrial Revolution, trade started to boom. After the 2nd world war , the establishment of GATT (General agreement on tariffs and trade). In 1995, WTO was founded, which greatly stimulated the development of international trade. In 2001, China became a member of WTO. Why Inter-Trade ? Common-sense Reasons for international trade: Diversity in conditions of production; Decreasing costs; Differences in tastes. Lower price ……………………………… Trading Theories Absolute Advantage Comparative Advantage Assumption: Each country will specialize in the production and export of those goods that it can produce at relatively low cost; conversely, each country will import those goods which it produces at relatively high cost. Absolute Advantage (Adam Smith) Product In America In Europe Comparative Advantage (David Ricardo) Product In America In Europe Factor Endowment The pattern of international trade is determined by differences in factor endowments. It predicts that countries will export those goods that make intensive use of locally abundant factors and will import goods that make i