Resume
Summary / lectures TPIT
- Cours
- Établissement
All 6 lectures in one document. This document together with learning the tutorials is enough to pass the course. No need to read the book. Grade obtained 8.7/10
[Montrer plus]
Vendeur
S'abonner
fjansen23
Aperçu du contenu
Lecture 1 Introduction and Empirical Pattern of TradeTopics within international economics
● International Economics: study of the interdependencies between countries
○ Exchanges between independent countries, which have different objectives
○ Markets have their own specificities (culture, preferences etc.)
○ Costs of exchanges specific to inter-countries exchanges: barriers to trade
● International exchanges can take several forms:
○ Exchanges of goods and services ⇒ International Trade
○ Exchanges of financial assets ⇒ International Macroeconomics
○ Migrations
Real or goods transactions: “Theory and Practice of International Trade” (this course)
➢ Exchange of goods and services between residents of different countries, i.e. imports
and exports of goods and services
➢ Theories on international trade: Classical and Neo-classical theories (Smith, Ricardo,
Heckscher-Ohlin-Samuelson) and modern theories
Why do you think countries trade with each other?
One country has something that the other doesn’t.
One country is more efficient in making one product than the other, competitive advantage.
Economies of scale, exporting.
Practice of international trade:
➢ Trade policy (trade policy = wide array of government policies that are designed to
influence the size of trade flows): tariffs, export subsidies, production subsidies,
industrial policy
➢ Trade policy in developing countries
➢ Trade policy in developed countries
➢ Globalization (and the critiques thereon)
➢ Regional economic integration
Do you think we should encourage international trade or decrease it?
Positive side:
- create efficiencies, lower costs
- better products for lower prices
- creates welfare
- more varieties of products
Negative side:
- high dependency on other countries (political problems, i.e. gas from Russia)
- not sustainable (transporting, emissions)
- expensive (transporting costs)
- inequalities, the’re gonna be losers from international trade; job losses, wage
decreases
1
,Empirical Patterns of Trade
Evolution of international trade over time
● Globalization is not a new phenomenon:
➢ some trade already in 16th century
➢ 20th century = major increase in trade, but discontinued
➢ increase before World War I
➢ decrease from 1914 to 1945
➢ openness regained 1914 levels only in the 1970s
● To assess magnitude of international trade, we should compare it to the size of the
economy:
→ Trade typically grows at a quicker pace than world GDP
(= a measure of the market value of all the final goods and services produced in a
specific time period by countries / standard measure of the value added created
through the production of goods and services in a country during a certain period)
Also equal to: the income earned from that production, or the total amount spent on
final goods and services (less imports).
● Openness to trade of countries is still quite diverse, but generally is increasing
● Open countries tend to grow faster than relatively closed countries
The Netherlands
- 70% share of its GDP is imported (we don’t produce many different products, therefore we
have to import most of our products)
- 80% share of its GDP is exported (what we do produce is way too much for our country
and is exported)
World exports of goods and services, % of world GDP, 1965-2010
2
,World merchandise exports, % of world GDP, 1500-2010
Why the recent increase in international trade?
Technological reasons:
- Communication technologies: Internet etc. (decrease in communication costs)
- Transport technologies: planes, containers etc. (decrease in transport costs)
Policy reasons:
- Free trade agreements
- Decrease in tariffs
- …
But also, higher demand in developing countries, political stability and more peace.
3
, Which countries trade? With whom?
❖ International trade dominated by developed countries
❖ Most trade takes place between countries that are similar
❖ International trade dominated by exchanges between developed countries
Geography of International Trade over time:
Geographic concentration of International Trade:
According to you, what can be determinants of trade flows between countries?
● Economic size of countries
● Distance between the countries: geographical distance, cultural distance
● Transport: roads, airports
● Production factors: resources in some countries and not in others, production costs
● Political factors: barriers to trade (tariffs), preferential trade agreements (customs
union), common currency
The gravity model
The reason for the name is the analogy to Newton’s law of gravity: Just as the gravitational
attraction between any two objects is proportional to the product of their masses and
diminishes with distance, the trade between any two countries is, other things equal,
proportional to the product of their GDPs and diminishes with distance.
4
Les avantages d'acheter des résumés chez Stuvia:
Qualité garantie par les avis des clients
Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.
L’achat facile et rapide
Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.
Focus sur l’essentiel
Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.
Foire aux questions
Qu'est-ce que j'obtiens en achetant ce document ?
Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.
Garantie de remboursement : comment ça marche ?
Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.
Auprès de qui est-ce que j'achète ce résumé ?
Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur fjansen23. Stuvia facilite les paiements au vendeur.
Est-ce que j'aurai un abonnement?
Non, vous n'achetez ce résumé que pour €9,99. Vous n'êtes lié à rien après votre achat.
Peut-on faire confiance à Stuvia ?
4.6 étoiles sur Google & Trustpilot (+1000 avis)
77988 résumés ont été vendus ces 30 derniers jours
Fondée en 2010, la référence pour acheter des résumés depuis déjà 14 ans