自考国际商务英语lesson5.pptVIP

International Business English Lesson 5 International Trade I Business Knowledge The definition of international trade (2) Two reasons for international trade A. The uneven distribution of natural resources among countries B. International specialization (3) Two theories for international specialization A. The theory of absolute advantage B. The theory of comparative advantage a. Contents of the theory b. Not a static concept c. The cornerstone of modern thinking on international trade d. David Ricardo, the economist who introduced the theory Trade Terms 1. Services 服务 2. Primary commodities 初级产品 3. Specialization 专业化: To restrict one’s economic activities to certain particular fields. 4. Absolute advantage 绝对利益: It holds that a commodity will be produced in the country where it costs least in terms of resources (capital, land and labor) 5. Comparative advantage 比较利益: It holds that even if a country is less efficient than another in the production of both commodities, i.e. it has absolute disadvantage in production both commodities, there is still a basis for mutually beneficial trade. 6. Capital 资本 7. Land and labor 土地和劳动力 8. International trade 国际贸易: The exchange of goods and services produced in one country with those produced in another sufficient. 9. Farm produce 农产品 10. Scarce resources 稀缺资源 In the complex economic world, no country can be completely self-sufficient. With the development of manufacturing and technology, there arose another incentive for trade, i.e. international specialization. According to the theory of Comparative advantage, both trade partners can benefit from trade. Comparative advantage is not a static concept. A country may develop a particular comparative advantage purely through its own actions The idea of comparative advantage has become the cornerstone of modern thinking on international trade. * *