Chapter 1
Introduction
Copyright ? 2003 Pearson Education,Inc,Slide 1-2
Introduction
? What is International Economics About?
? International Economics,Trade and Money
Copyright ? 2003 Pearson Education,Inc,Slide 1-3
? International economics deals with economic
interactions that occur between independent nations.
? The role of governments in regulating international trade
and investment is substantial,
? Analytically,international markets allow governments to
discriminate against a subgroup of companies.
? Governments also control the supply of currency.
? There are several issues that recur throughout the study
of international economics.
What is
International Economics About?
Copyright ? 2003 Pearson Education,Inc,Slide 1-4
? The Gains from Trade
? Many people are skeptical about importing goods that a country could produce
for itself.
? When countries sell goods and services to one another,all countries benefit.
? Trade and income distribution
– International trade might hurt some groups within nations.
– Trade,technology,and wages of high and low-skilled workers.
What is
International Economics About?
Copyright ? 2003 Pearson Education,Inc,Slide 1-5
What is International Economics About?
– The Pattern of Trade (who sells what to whom?)
– Climate and resources determine the trade pattern of several goods.
– In manufacturing and services the pattern of trade is more subtle.
-International difference in labor productivity.
-The relative supplies of national resources such as capital,labor,and
land on one side and the relative use of these factors in the production
of different goods on the other.
-A substantial random component.
– There are two types of trade:
? Interindustry trade depends on differences across countries.
? Intraindustry trade depends on market size and occurs among
similar countries.
Copyright ? 2003 Pearson Education,Inc,Slide 1-6
? Protectionism?
? Many governments are trying to shield certain industries
from international competition.
? This has created the debate dealing with the costs and
benefits of protection relative to free trade.
– Advanced countries’ policies engage in industrial targeting.
– Developing countries’ policies promote industrialization:
– Import substitutionversus export promotion industrialization.
What is
International Economics About?
Copyright ? 2003 Pearson Education,Inc,Slide 1-7
? The Balance of Payments
? Some countries run large trade surpluses.
– For example,in 1998 both China and South Korea ran
trade surpluses of about $40 billion each.
? Is it good to run a trade surplus and bad to run a trade
deficit?
? Exchange Rate Determination
? The role of changing (floating)exchange rates is at the
center of international economics.
What is
International Economics About?
Copyright ? 2003 Pearson Education,Inc,Slide 1-8
What is
International Economics About?
? International Policy Coordination
? A fundamental problem in international economics is how to
produce an acceptable degree of harmony among the
international trade and monetary policies of different countries
without a world government that tells countries what to do.
? The International Capital Market
? There are risks associated with international capital markets:
– Currency depreciation
– National default
Copyright ? 2003 Pearson Education,Inc,Slide 1-9
International Economics:
Trade and Money
? International trade analysis focuses primarily on the
real transactions in the international economy.
? These transactions involve a physical movement of
goods or a tangible commitment of economic
resources.
–Example,The conflict between the United States and
Europe over Europe’s subsidized exports of agricultural
products
Copyright ? 2003 Pearson Education,Inc,Slide 1-10
? International monetary analysis focuses on the
monetary side of the international economy,
? That is,financial transactions such as foreign
purchases of U.S,dollars.
– Example,The dispute over whether the foreign
exchange value of the dollar should be allowed to float
freely or be stabilized by government action
International Economics:
Trade and Money
Copyright ? 2003 Pearson Education,Inc,Slide 1-11
? International trade issues
? Part I,International Trade Theory
? Part II,International Trade Policy
? International monetary issues
? Part III,Exchange Rates and Open-Economy
Macroeconomics
? Part IV,International Macroeconomic Policy
International Economics:
Trade and Money
Copyright ? 2003 Pearson Education,Inc,Slide 1-12
参考文献：
? （美）熊彼特，经济分析史，第一卷，商务印书
馆,2001年，北京
? （美）约翰戈登，伟大的博弈，中信出版社，
2005年
? 厉以宁，资本主义的起源，商务印书馆,2003年
? 中华人民共和国国家统计局网站：
www.states.gov.cn
? 中国经济信息网,www.cei.gov.cn
Introduction
Copyright ? 2003 Pearson Education,Inc,Slide 1-2
Introduction
? What is International Economics About?
? International Economics,Trade and Money
Copyright ? 2003 Pearson Education,Inc,Slide 1-3
? International economics deals with economic
interactions that occur between independent nations.
? The role of governments in regulating international trade
and investment is substantial,
? Analytically,international markets allow governments to
discriminate against a subgroup of companies.
? Governments also control the supply of currency.
? There are several issues that recur throughout the study
of international economics.
What is
International Economics About?
Copyright ? 2003 Pearson Education,Inc,Slide 1-4
? The Gains from Trade
? Many people are skeptical about importing goods that a country could produce
for itself.
? When countries sell goods and services to one another,all countries benefit.
? Trade and income distribution
– International trade might hurt some groups within nations.
– Trade,technology,and wages of high and low-skilled workers.
What is
International Economics About?
Copyright ? 2003 Pearson Education,Inc,Slide 1-5
What is International Economics About?
– The Pattern of Trade (who sells what to whom?)
– Climate and resources determine the trade pattern of several goods.
– In manufacturing and services the pattern of trade is more subtle.
-International difference in labor productivity.
-The relative supplies of national resources such as capital,labor,and
land on one side and the relative use of these factors in the production
of different goods on the other.
-A substantial random component.
– There are two types of trade:
? Interindustry trade depends on differences across countries.
? Intraindustry trade depends on market size and occurs among
similar countries.
Copyright ? 2003 Pearson Education,Inc,Slide 1-6
? Protectionism?
? Many governments are trying to shield certain industries
from international competition.
? This has created the debate dealing with the costs and
benefits of protection relative to free trade.
– Advanced countries’ policies engage in industrial targeting.
– Developing countries’ policies promote industrialization:
– Import substitutionversus export promotion industrialization.
What is
International Economics About?
Copyright ? 2003 Pearson Education,Inc,Slide 1-7
? The Balance of Payments
? Some countries run large trade surpluses.
– For example,in 1998 both China and South Korea ran
trade surpluses of about $40 billion each.
? Is it good to run a trade surplus and bad to run a trade
deficit?
? Exchange Rate Determination
? The role of changing (floating)exchange rates is at the
center of international economics.
What is
International Economics About?
Copyright ? 2003 Pearson Education,Inc,Slide 1-8
What is
International Economics About?
? International Policy Coordination
? A fundamental problem in international economics is how to
produce an acceptable degree of harmony among the
international trade and monetary policies of different countries
without a world government that tells countries what to do.
? The International Capital Market
? There are risks associated with international capital markets:
– Currency depreciation
– National default
Copyright ? 2003 Pearson Education,Inc,Slide 1-9
International Economics:
Trade and Money
? International trade analysis focuses primarily on the
real transactions in the international economy.
? These transactions involve a physical movement of
goods or a tangible commitment of economic
resources.
–Example,The conflict between the United States and
Europe over Europe’s subsidized exports of agricultural
products
Copyright ? 2003 Pearson Education,Inc,Slide 1-10
? International monetary analysis focuses on the
monetary side of the international economy,
? That is,financial transactions such as foreign
purchases of U.S,dollars.
– Example,The dispute over whether the foreign
exchange value of the dollar should be allowed to float
freely or be stabilized by government action
International Economics:
Trade and Money
Copyright ? 2003 Pearson Education,Inc,Slide 1-11
? International trade issues
? Part I,International Trade Theory
? Part II,International Trade Policy
? International monetary issues
? Part III,Exchange Rates and Open-Economy
Macroeconomics
? Part IV,International Macroeconomic Policy
International Economics:
Trade and Money
Copyright ? 2003 Pearson Education,Inc,Slide 1-12
参考文献：
? （美）熊彼特，经济分析史，第一卷，商务印书
馆,2001年，北京
? （美）约翰戈登，伟大的博弈，中信出版社，
2005年
? 厉以宁，资本主义的起源，商务印书馆,2003年
? 中华人民共和国国家统计局网站：
www.states.gov.cn
? 中国经济信息网,www.cei.gov.cn
