XI-International Trade-5

Question 1

terms of trade

Answer 1

贸易条件

ratio of price of exports to the price of imports

index number normalized to 100

如果出口价格相对进口价格增长，贸易条件就改善

Question 2

autarky

Answer 2

自给自足，封闭经济

Question 3

world price

Answer 3

the price of goods and services in a country

with no restriction on trade

Question 4

FDI

Answer 4

foreign direct investment

by a firm in source country invest

in productive assets in a host country

Question 5

FPI

Answer 5

foreign portfolio investment

short term investment

by individual, firm or insititutional investors

of foreign stocks and foreign gov bonds

Question 6

MNC

Answer 6

跨国公司

multinational coropration

when a firm engages in a FDI

Question 7

pro international trade

5 arguments

Answer 7

gain from exchange/specialization (比较优势)

greater economies of scale

greater productivity

increased competition

better resource allocation

Question 8

against international trade

2 arguements

Answer 8

potential greater income inequality

loss of job by import competition

Question 9

explain

comparative advantage

in table

Answer 9

注意用机会成本解释

“牺牲多少。。换来多少。。”

Question 10

comparative advantage:

Ricadian Model

Answer 10

1. labor (productivity)是生产的唯一变量
2. 劳动力生产率，即实际上的科技因素，是决定一国比较优势的决定因素
3. free trade中，小国完全分工，比较优势产业产量仍然无法满足总需求，因此大国不完全分工，仍生产部分非比较优势产业产品。

Question 11

comparative advantage:

Heckscher-Ohlin Model

Answer 11

1. capital and labor两个变量
2. 每个国家两个因素的相对量不同，产生比较优势，资本密集的国家加大出口资本密集行业产品，劳动密集国家加大出口劳动密集行业产品
3. 模型可以解释贸易产生的收入再分配：如资本密集国家，资本密集行业产品出口增加，价格上升，对资本的回报更多 ——哪种要素有比较优势，哪种要素价格就将上升

Question 12

restrictions on foreign flows

Answer 12

trade restriction: tariffs, import quotas,

voluntary export restrains (VER), export subsidies, embargos,

domestic content requirements (components of domestic origin)

capital restriction

Question 13

tariff in chart

gain and loss

Answer 13

loss of cosumer surplus: ABCD

local producers gain: A

gov gain: C

national welfare DWL: B+D

Question 14

explain

comparative advantage

in chart

Answer 14

autarkic price - equilibrium

world price - new equilibrium

export - import

indifference curve raises

Question 15

大国可通过加关税获得益处的条件（2+1）

Answer 15

1. 贸易对手不retaliate
2. DWL比terms of trade的增长要小

但：总体是有DWL的，即使大国gain，因为小国损失更多

Question 16

effects of trade restrictions I

Answer 16

小国：world price taker

大国：加征关税时，进口商品为了抢占市场可能降低价格，带来大国welfare rise

Question 17

effects of trade restrictions II

Answer 17

Question 18

forms Trading Blocs

depending on degree of integration

Answer 18

Free Trade Areas (FTA， 成员间自由贸易，对外各自为政)

customs union (成员间自由贸易，对外统一关税)

common market （统一海关，要素自由流动）

economic/(统一经济政策/机构)

monetary union （统一货币）

Question 19

地区贸易协议带来的两个影响

Answer 19

Trade Creation

Trade Diversion

Question 20

地区贸易协议的好与坏

Answer 20

spill over of both goods and bads

Question 21

4 purposes of

capital control

Answer 21

1. maitain currency exchange rate
2. protect domestic interest rates from external forces
3. protect domestic (liquid and fixed) asset price
4. protect strategic industries

Question 22

current account

Answer 22

1. Merchandise trade (commodities & goods)

2. Services

3. Income receipts (股票分红、债券利息)

4. Unilateral Transfers (worker transmit, foreign grant)

Question 23

capital account

Answer 23

1. capital transfers: 债务豁免、因移民引起的商品和金融资产移动（移入或移出）、固定资产所有权转移，买卖固定资产所得款项，遗产

2. sales and purchases of non-produced, non-financial assets: 自然资源所有权+无形资产（专利、版权、特许经营权等）

Question 24

financial account

Answer 24

1. assets abroad: （个人及政府）黄金、外汇、外国证券、IMF头寸、对外直接投资、

2. foreign assets in the reporting country: 本国国内的外国官方资产，本国政府企业债券、外来直接投资，本国银行对外国债务

Question 25

financial account + capital account 合并概念

Answer 25

"capital account": = FPI+ FDI

Question 26

current account deficit 的实质

Answer 26

inter-temporal trade importing present consumption (when it borrows to fund current expentidure) and exporting future consumption (when it repays loans)

Question 27

CA = Y - (C + I + G) 来源及 含义

Answer 27

Y = C + I + G + CA ## Footnote 贸易赤字表示国内经济（C+I+G）高于国内产出（Y），需要净进口外国商品和服务 如果国内生产的东西多余国内需要的，就用于出口

Question 28

Sp + Sg = I + CA 1. 推导 2. 意义

Answer 28

1. 从 S-I=(G-T)+(X-M)得来，Sg=T-G 2. 一国可以不用通过增加国内存款来补养国内投资，而通过减少CA（trade deficit）来实现

Question 29

Sp = I + CA - Sg 含义

Answer 29

S = I + (G-T) + (X-M) private savings can be used in 3 ways: 1. domestic investment 2. financing gov deficit 3. 增加对外债权和资产

Question 30

CA = Sp + Sg - I 含义

Answer 30

1. current account deficit comes from: low private savings, gov deficit, or high investment 2. 贸易赤字若来源于Sp+Sg减少，即国内消费增加引起，即意味着借钱来消费，本国偿还负债能力不变 3. 贸易赤字若来源于国内投资增加，则国内生产力提高，偿债能力提高

Question 31

functions of IMF

Answer 31

1. cooperation on monetary problems 2. 促进国际经济、贸易、就业、减贫 3. exchange rate stability 4. manage international payments system 5. lend foreign currencies to countries facing BoP problems

Question 32

2 major agreements within the WTO body of treaties

Answer 32

General Agreement on Tariffs and Trade (GATT， 1948-1995， WTO的前身) General Agreement on Trade and Services (GATS)

Question 33

a country captures more of the gains from trade if

Answer 33

the terms of trade are closer to it's partners autarkic price than to its autarkic price

Question 34

（出口国） 在export subcidy中， 大国还是小国的welfare loss更多，为何

Answer 34

大国 the increased production reduces its global price, so terms of trade worsens.