商贸英语ppt2.pptVIP

c YOUR SITE HERE LOGO c c Business English Speaker 推荐 Review Reasons for the International Trade There are many reasons, including lower production costs in one region versus another, specialized industries, lack or surplus of natural resources and consumer tastes. Absolute Advantage (Adam Smith) Days of Labor Required to Produce Country Cloth (1 bolt) Wine (1 barrel) Scotland 30 120 Portugal 100 20 Country Wine Cloth Price Rations in Autarky Portugal 80hrs./bbl. 90hrs./yd. 1W:8/9C Scotland 120hrs./bbl. 100hrs./yd. 1W:6/5C Review Comparative Advantage (David Ricardo) Note: Price Ratios in Autarky refers to the price when the country has no international trade. Note: hrs-hours/bbl-barrel/yd-yard/c-cloth Questions for After-class Reading: According to David Smith, nations should allow free trade and abolish government intervention. Would you agree with him? There are a variety of goals of international trade policies (national security, stable employment, balance of payments considerations, economic development, etc. ), and these goals could not be all on the top of the agenda at the same time when international trade policies are formulated. How would government make their choices among these goals? What suggestions would you make for China’s foreign trade policy? International Trade– The international Trade Policy International Trade– The international Trade Policy Free Trade vs. Protectionism Questions: How does free trade benefit countries? It does so by enabling countries to specialize in producing those goods at which they are best. Specialization can take the form of either inter-industry or intra-industry specialization. What is inter-industry specialization? What is intra- industry specialization? Benefits of inter-industry specialization: a reduction in the prices of the goods and more efficient use of resources. Benefits of intra-industry specialization: gain bigger dynamic gains th