经济相互依存性.ppt

The International Economy Chapter 1 Key Concepts and Terms Economic interdependence 经济相互依存性 Law of comparative advantage 比较优势原理 I. Ever-increasing Degree of  Economic Interdependence Reflects the historical evolution of the world’s economic and political order; Has become much more sophisticated in recent years; Has uneven effects on different countries and different economic sectors within a country. II. Driving Forces behind Globalization Technological change Trade liberalization Financial liberalization Global production Case: the U.S as an Open Economy The U.S. economy has become increasingly integrated into the world economy. Such integration involves a number of dimensions, including trade of goods and services, financial markets, the labor force, ownership of production facilities, and dependence on imported materials. Table 1.1 Exports of Goods and Services as a percentage of Gross Domestic Product (GDP), 1999 Table 1.2 Leading Trading Partners of the United States, 1998 III. Why is International Trade Important According to the law of Comparative Advantage, the citizens of each nation can gain by spending more of their time and resources doing those things where they have a relative advantage. International trade also results in gains from the competitive process. IV. Common Fallacies of  International Trade Trade is a zero-sum activity—if one trade party gains, the other must lose. Imports reduce employment and act as a drag on the economy. Tariffs, quotas, and other import restrictions will save jobs and promote a higher level of employment. V. Consequences of  Increased Openness curtail inflationary pressures at home; places constraints on wages for domestic workers; reduce or eliminate the crowding-out of private investment; make the domestic economy vulnerable to disturbances initiated overseas; affects fiscal policy. VI. Is Business Cycle Disappearing in