International Economics 复习材料.doc

International Economics Review MaterialEdited By: Mr. YoungInternational Economics The final exam includes four Parts: multiple choices (1.5x15=30), glossary (5x4=20), brief answer: (3x10=30) and reading graph (2 questions, each worth 10).Note: There are still some errors in this material, so you should compare it with your book, finding out them in case of the errors happening in your exam! Some answers which are not given request you to find them.Suggestion: Before the final examination, briefly reading the book is necessary rather than just scanning and skimming!Part Ⅰ (Glossary) 5 x 4=20Absolute advantage: the greater efficiency that one nation may have over another in the production of a commodity. This is the basis for trade for Adam Smith.Balance of payments: a summary statement of all the international transaction of the residents of a nation with the rest of the world during a particular period of time, usually a year. (Multiple Choices)Balanced growth: equal rates of factor growth and technological progress in the production of both commodities. Factor-price equalization (H-S-O) theorem: the part of the H-O theory that predicts, under highly restrictive assumptions, that international trade will bring about equalization in relative and absolute returns to homogeneous factors across nations.Forward discount: the percentage per year by which the forward rate on the foreign currency in below its spot rate.Heckscher-Ohlin(H-O) theorem: the part of the H-O theory that postulates that a nation will export the commodity intensive in its relatively abundant and cheap factor and import the commodity intensive in its relatively scarce and expensive factor.Heckscher-Ohlin(H-O) theory: the theory that postulates that (1) a nation exports commodities intensive in its relatively abundant and cheap factor and (2) international trade brings about equalization in return to homogeneous factors across countries.Immiserizing growth: the situation where a nation’s terms of t