IEP-Chapter 1-1

Import&ExportPracticesLecturer:HanGuohuaE-mail:[e-mail]e:Homework:20%Classattendence:10%Finalexam.:70%ReferenceBooksTextbook:Import&ExportPracticesOtherreferencebooks:《国际贸易实务与案例》《国际经济导论》Import&ExportPracticesChapter1InternationalTradeChapter2TermsofDeliveryChapter3CargoPacking,Stowage&MarkingChapter4TransportChapter5ForeignExchangeRate,Offer&AcceptanceImport&ExportPracticesChapter6PaymentTermsChapter7OceanMarineInsuranceChapter8Inspection,ForceMajeure&ArbitrationChapter9DocumentationChapter10OutlineofImport&ExportProceduresChapter1InternationalTradeTopics1.ReasonsforInternationalTrade2.BenefitsofInternationalTrade3.ProblemsininternationaltradeObjectives:•Studentsshouldunderstandthegeneralframework,definitionsofinternationaltrade,reasonsforhavinginternationaltradefordifferentcountries,benefitsofinternationaltrade.Warm-upquestions:Warm-upquestionsforChapter1:Whatisinternationaltrade?Whycountriesareconductinginternationalbusinesseswithoneanother?Howmanyreasonscanyougivetoexplainthisphenomenon?Whatarebenefitsofinternationaltrade?1.Aboutinternationaltrade:•Internationaltrade,alsocalledforeigntrade,worldtradeoroverseastrade,inessence,isthefairanddeliberateexchangeofcommodityandserviceacrossnationalboundaries.Itincludesimportandexporttradeoperations.2.Theappearanceofinternationaltradearisesformanyreasons:1)Thedifferentdistributionoftheworld’sresourcesdeterminesthepatternsofworldtrade.2)Climateandterrainaffectthecultivationofsomeagriculturalproductsanationcanproduceandtradeinternationally.3)Theskilledworkersandcapitalresourceshelpdeterminewhatanationisabletoproduceandtradewithothernations.4)Withthedevelopmentofmanufacturingandtechnology,therearoseanothermotivation,economicbenefit,fornationstotrade.5)Politicalobjectivescansometimesoutweigheconomicconsiderationsbetweencountries,etc.3.ItsroleinthesystematizationofEconomics:MicroeconomicsECMacroeconomicsInternationaleconomicsInternationalTradeInternationalFinance4.WhatdoesITstudy?ØThegainfromtradeWhencountriessellgoodsandservicestooneanother,thisisalmostalwaystotheirmutualbenefit-thatistosay,therearegainsfromthetrade.ØThepatternoftradeCloth,machine,toy,tech.,oil,tulip,soybean,etc.ØPolicychoice:BalancebetweenfreetradeandprotectionismEraReasonChoice15－17cAccumulateProtectionism18cExpanseLiberalism1930sEconomicCrisisProtectionismWar-afterMutualbenefitLiberalism5.Usefulinformationsites:(中华人民共和国对外经济贸易合作部)://ecedweb.unomaha.edu/://://商务部老行者之家中国经济学教育科研网:A)Conception:InternationalTrade(fromthepointofviewofworld);Foreigntrade(fromthepointofviewofsinglecountry)B)ExportandImportImportsaregoodsandservicespurchasedfromforeignsources.E.g.TheU.S.importsover$1trillionworthofgoodsandservices.Totalimportsrepresent12%oftotalGDP.Exportsaregoodsandservicessoldtoforeignbuyers.E.g.Exportswerejustunder$700billionin2000.Exportsaccountforabout11%oftotaloutputA)Measurementa)Volume&Valueb)TradeBalanceImportsandexportsareseldomequal.(X=Export,M=Import)Thetradebalanceisthedifferencebetweenexportsandimports.nFavorablebalance(surplus):X-M0nTradesurplus—theamountbywhichthevalueofexportsexceedsthevalueofimportsinagiventimeperiod.nUnfavorablebalance(deficit):X-M0nTradedeficit—theamountbywhichthevalueofimportsexceedsthevalueofexportsinagiventimeperiodAnyimbalanceintradeintheworldmustbeoffsetbyreversebalanceselsewhereintheworld.8.BenefitsofInternationalTrade1)Cheapergoods,2)Greatervarietywhengoodscomefrommorecountries,3)Widermarketwithincreasingnumberoftradingpartners,4)Growthofeconomy.9.Absoluteadvantage,comparativeadvantage&tradebalanceAbsoluteadvantage:situationthatexistswhenonlyonecountrycanproduceacertainitem,orcanproduceitmuchmoreefficientlythananyothercountry.Comparativeadvantage:situationthatexistswhenacountrycanproduceaproductorprovideacertainserviceatmuchlowercostthananyothercountry.(Note:AskthestudentstolookatthetablesonP3~P5whenexplainingthesetwoterms)Tradebalance:thedifferencebetweenthevalueofmerchandiseexportsandthevalueofmerchandiseimportsforanationduringagivenperiodoftime.