清华国际贸易学双语讲义newchap7.pdfVIP

Chapter 7 The Theory o f Protective Trade 7.1 The theory of protective tariff Alexander Hamilton (1755 -1804) Report on Manufactures - submitted to Congress 1791 He recommended specific policies to encourage manufactures: protective duties prohibitions on rival imports exemption of domestic manufactures f rom duties encouragement of new inventions . . . particularl y those, which relate to machinery. 7.2 The theor y of protecting infant industr y List, (Georg) Friedrich ( 1789 1846) ( German-U.S. economist His best-known work was The National System of Political Economy (1841). Political Economy (1827) He first gained prominence as the founder of an association of German industrialists that favored abolishi ng tariff barriers between the German states He maintained that a national economy in an early stage of industrialization requir ed tariff protection to stimulate development 7.3 The theor y of foreign trade multiplier John Maynard Keynes (1883 1946) The General Theory of Employment, Interest and Money 7.3.1 Determination of the equilibrium national income in a closed economy Gross National Product (GNP) Total final value of goods and services produced in a national economy over a particular period of time,usually one year. National income (Y) The sum of all payments made to sum factors of production. Equilibrium of National economy GNP = Y GNP = C + I C Total consumption I Total investment Y = C + S S Total saving C + I = C + S I = S 7.3.2 The Multiplier in a Closed Economy Y = K x I Y = C + S I = S Y = I + C I = Y C K = Y = Y = 1 I Y