克鲁格曼国际经济学第十版英文版第二章.pptVIP

Chapter 2 World Trade: An Overview Preview Largest trading partners of the United States Gravity model: influence of an economy’s size on trade distance and other factors that influence trade Borders and trade agreements Globalization: then and now Changing composition of trade Service outsourcing Who Trades with Whom? The 5 largest trading partners with the U.S. in 2008 were Canada, China, Mexico, Japan, and Germany. The total value of imports from and exports to Canada in 2008 was about $550 billion dollars. The largest 15 trading partners with the U.S. accounted for 69% of the value of U.S. trade in 2008. Fig. 2-1: Total U.S. Trade with Major Partners, 2008 Size Matters: The Gravity Model 3 of the top 10 trading partners with the U.S. in 2008 were also the 3 largest European economies: Germany, U.K., and France. These countries have the largest gross domestic product (GDP) in Europe. GDP measures the value of goods and services produced in an economy. Why does the U.S. trade most with these European countries and not other European countries? Size Matters: The Gravity Model (cont.) In fact, the size of an economy is directly related to the volume of imports and exports. Larger economies produce more goods and services, so they have more to sell in the export market. Larger economies generate more income from the goods and services sold, so they are able to buy more imports. Fig. 2-2: The Size of European Economies, and the Value of Their Trade with the United States The Gravity Model Other things besides size matter for trade: Distance between markets influences transportation costs and therefore the cost of imports and exports. Distance may also influence personal contact and communication, which may influence trade. Cultural affinity: if two countries have cultural ties, it is likely that they also have strong economic ties. Geography: ocean harbors and a lack of mountain barriers make transportation and trade easier. The Gravity Model (cont.) Multin