Samenvatting
International Trade full summary
These are all slides of the lessons of the international trade course, together with additional explanations of the book.
[Meer zien]Voorbeeld 4 van de 86 pagina's
Voorbeeld 4 van de 86 pagina's
In winkelwagenGekoppeld boek
Titel boek:
Auteur(s):
- Uitgave:
- ISBN:
- Druk:
2 beoordelingen
Door: MVDorpe • 1 jaar geleden
Door: maljurf • 1 jaar geleden
Voorbeeld van de inhoud
2021 - 2022International Trade
Vrije Universiteit Brussel
, 1st Master International Business
International Trade
What is international trade about?
Trade theory
Countries engage in international trade for two basic reasons, each of which contributes to their
gains from trade:
1) Countries trade because they are different from each other countries differ in resources,
productivity levels, available technology,.. and they can benefit from these differences by
reaching an arrangement in which each does the things that they do relatively well. Countries
will specialize in what they do well.
2) Countries trade to achieve economies of scale in production if a country produces only a
limited range of goods, they can produce each of these goods at a larger scale, larger
quantities so it can be more efficiently than trying to produce everything.
There is always interaction between both, it’s not just one or the other, they often work
simultaneously.
World trade: an overview (Chapter 2)
Countries trade because they are different from each other:
o Ricardian model (Chapter 3)
o Specific factors model (Chapter 4)
o Heckscher-Ohlin model (Chapter 5)
o Standard Trade model (Chapter 6)
Countries trade to achieve economies of scale in production:
o External – industry (Chapter 7)
o Internal – firm (Chapter 8)
Trade Policy
▪ Instruments of trade policy (Chapter 9)
▪ Trade policy: theory and practice (Chapters 10 and 11)
▪ Controversies in trade policy (Chapter 12)
Page | 2
, 1st Master International Business
Chapter 2 : World trade: an overview
Let’s explore
• Imports (value + as % of GDP)
• Exports (value + as % of GDP)
• Top 5 trading partners (for export and for import)
• Top 5 traded products (for export and for import)
• History: evolution for past 70 years? Important shifts/events?
• Is the country member of an international trade agreement? Since?
Distance will have an influence on these aspects. Top trading partners will usually not be too far from
each other.
Trade agreements have an influence on these aspects.
Size matters: the gravity model
The value of trade between any two countries is proportional, other things equal, to the product of
the two countries’ GDPs and diminishes with the distance between the two countries:
This is a model that economist often use, what is the difference between
these 2? The second equation says that the free things that determine
the volume of trade between 2 countries are the size of the 2 countries
GDP and the distance between the 2 countries without specifically
assuming that trade is proportional to the products of the 2 GDP’s.
instead of that, there are these exponents (a,b and c) who are chosen to
fit the actual data as closely as possible. In this equation we assume that a,b and c are equal to 1.
Why does the gravity model work? Broadly speaking, large economies tend to spend large amounts
on imports because they have large incomes. They also tend to attract large shares of other
countries’ spending because they produce a wide range of products. So, other things equal, the trade
between any two economies is larger—the larger is either economy.
Impediments to trade
• Distance : Why does the United States do so much more trade with its North American neighbors
than with its European partners? One main reason is the simple fact that Canada and Mexico are
much closer.
Less tangible factors also play a crucial role.
• Barriers : In addition to being U.S. neighbors, Canada and Mexico are part of a trade agreement
with the United States, the North American Free Trade Agreement, or NAFTA, which ensures that
most goods shipped among the three countries are not subject to tariffs or other barriers to
international trade.
• Borders : It’s important to note, however, that although trade agreements often end all formal
barriers to trade between countries, they rarely make national borders irrelevant. Even when
most goods and services shipped across a national border pay no tariffs and face few legal
Page | 3
, 1st Master International Business
restrictions, there is much more trade between regions of the same country than between
equivalently situated regions in different countries.
Discuss the following: history: evolution for past 70 years? Important shifts/ events?
Discuss the following: Top 5 traded products (for export and import)
What do we trade?
The Composition of World Trade, 2015: Most world trade is in manufactured goods, but minerals—
mainly oil— remain important.
We see that the majority are manufacturing goods, also services have become more and more
important.
In case of the UK, the imports were much lower +- 24% than now where it is +- 74%. There has been
a shift from more primary goods (mining goods) to these manufacturing products.
• Over the past 50 years, the exports of developing countries have shifted toward manufactures.
• For developing countries, the dominance for manufacturing goods is relatively recent.
Page | 4
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
√ Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, Bancontact of creditcard voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper sarahh00. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €6,47. Je zit daarna nergens aan vast.
Is Stuvia te vertrouwen?
4,6 sterren op Google & Trustpilot (+1000 reviews)
Afgelopen 30 dagen zijn er 56326 samenvattingen verkocht
Opgericht in 2010, al 14 jaar dé plek om samenvattingen te kopen