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Unit 9 Import and export 9.1 Reasons for international trade 1. Unevenly distributed natural resources 2. Climate and terrain 3. Skilled workers and capital resources 4. Economic benefit (theory of comparative advantage) 5. Insufficient domestic production and political reasons 6. Specializing in some services shipment ; insurance; tourism; immigrant remittance In his example , David Ricardo imagined two countries, England and Portugal producing two kinds of goods, cloth and wine, using labor as the sole input in production. He assumed that the productivity of labor (i.e., the quantity of output produced per worker) varied between industries and across countries. Ricardo assumed that Portugal was more productive in both goods. Theory of comparative advantage Reasons of Trade barriers 1) To correct a balance-of-payments deficit favorable balance of trade trade surplus Unfavorable balance trade deficit 2) For reasons of national security 3) To protect their own industries against the competition of foreign goods. Means of Trade Barriers Tariff ad valorem tariff (从价关税) specific duty(从量关税) compound duty (混合税) alternative duty (选择税) Non-tariff import licenses (进口许可证) import quotas (进口配额) technical barriers to trade(技术贸易壁垒 ) export subsidy (出口补贴) foreign exchange control (外汇管制): import tariff / duty export protectionist control quota International trade is the exchange of goods and services between different countries. Depending on what a country produces and needs, it can __________( send goods to another country) and ___________(bring in goods from another country. Government can __________ international trade. The most common measures are tariffs or duties and quotas. A ___________ is a tax on imported goods, and a _________ is the maximum quantity of a product allowed into a country during a certain period of time. These measures are ___________ as th
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