Студопедия  
Главная страница | Контакты | Случайная страница

АвтомобилиАстрономияБиологияГеографияДом и садДругие языкиДругоеИнформатика
ИсторияКультураЛитератураЛогикаМатематикаМедицинаМеталлургияМеханика
ОбразованиеОхрана трудаПедагогикаПолитикаПравоПсихологияРелигияРиторика
СоциологияСпортСтроительствоТехнологияТуризмФизикаФилософияФинансы
ХимияЧерчениеЭкологияЭкономикаЭлектроника

THE THEORIES OF INTERNATIONAL TRADE

Читайте также:
  1. An international travel magazine has asked its readers to describe a famous city. Write your description.
  2. Contemporary Theories of Electrolytes
  3. Documentation in International Trade
  4. ENGLISH AS MEANS OF INTERNATIONAL COMMUNICATION
  5. Exhibition. International Exhibition of Light Industry Achievements
  6. FIR, Department of ESP, International Relations, Winter session, 5th semester, 2013/14
  7. FIRST VINTAGE INTERNATIONAL EDITION, DECEMBER 1993
  8. INTEL CEO ON THE NEED FOR INTERNATIONAL STANDARDS
  9. INTERNATIONAL AVIATION ORGANIZATIONS
  10. INTERNATIONAL CIVIL AVIATION ORGANIZATION

Exercise#1. Bicycles and tennis rackets are produced in 2 countries A and B according to the table below.

Table#1. Cost to produce, labour-hour per unit of output

Commodity Country A Country B
Bicycles 60 h 120 h
Tennis rackets 30 h 40 h

With reference to the table indicate in what commodity countries A and B have

a) an absolute advantage; b) comparative advantage.

a) The Theory of Absolute Aadvantage by Adam Smith:

Country ____ (A, B) has an absolute advantage over country ____ (A, B) in production of _______________________ (bicycles, tennis rackets) because it spents ______ (less, more) labor-hours to produce 1 unit of ouitput than country ____ (A, B).

Bicycles: ______________________________________

Tennis rackets: _________________________________

So, by the theory of Adam Smith country ____ (A, B) will export ___________ _____________ (bicycles, tennis rackets) to country ____ (A, B).

 

b) The Theory of Comparative Advantage by David Ricardo:

Table#2. Opportunity cost

Commodity Country A Country B
  Bicycles    
  Tennis rackets    

 

Country ____ (A, B) has a comparative advantage over country ___ (A, B) in production of __________________ (bicycles, tennis rackets) because its opportunity cost is ______ (less, more): ____________________.

So, by the theory of Comparative Advantage country ____ (A, B) will export ___________ (bicycles, tennis rackets) to country ____ (A, B).

Country ____ (A, B) has a comparative advantage over country ___ (A, B) in production of __________________ (bicycles, tennis rackets) because its opportunity cost is ______ (less, more): ____________________.

So, by the theory of Comparative Advantage country ____ (A, B) will export ___________ (bicycles, tennis rackets) to country ____ (A, B).

 

Exercise#2. Country A can produce 2 tons of wheat or 5 tons of coal using 1 unit of resourses (labour-hours). Country B can produce 1 ton of wheat or 4 tons of coal for each unit of resourses.

Which country will export wheat? Which country will export coal?

Table#1. Labor productivity, numbers of units of output produced per 1 labour-hour

Commodity Country A Country B
Wheat, tons    
Coal, tons    

 

Table#2. Opportunity cost

Commodity Country A Country B
  Wheat    
  Coal    

 

Country ____ (A, B) has a comparative advantage over country ___ (A, B) in production of __________________ (wheat, coal) because its opportunity cost is ______ (less, more): ____________________.

So, by the theory of Comparative Advantage country ____ (A, B) will export ___________ (wheat, coal) to country ____ (A, B).

Country ____ (A, B) has a comparative advantage over country ___ (A, B) in production of __________________ (wheat, coal) because its opportunity cost is ______ (less, more): ____________________.

So, by the theory of Comparative Advantage country ____ (A, B) will export ___________ (wheat, coal) to country ____ (A, B).

Exercise#3. Prove that both nations can benefit from trade applied to hypothetical example considering 2 countries - Ukraine and Japan - and 2 kinds of commodities - sugar and TV set.

Assumptions

Ukraine Japan
1. 120 units of resources 1. 150 units of resources
2. 6 units of resources are spent for the production of 1 ton of sugar 2. 5 units of resources are spent for the production of 1 ton of sugar
3. 24 units of resources are spent for the production of 1 unit TV set 3. 5 units of resources are spent for the production of 1 unit TVset
4. In the absence of foreign trade for the production of each product are spent: 24 units of resources – for sugar production; 96 units of resources – for TV set production 4. In the absence of foreign trade for the production of each product are spent: 30 units of resources – for sugar production; 120 units of resources – for TV set production

 

According to the assumptions Ukraine spends ______ resources for sugar production and __________ resources for TV set production. So the optimal structure of production for Ukraine is ________ ton of sugar and ______ units of Tvset. Japan spends ______ resources for sugar production and __________ resources for TV set production. So the optimal structure of production for Japan is ________ ton of sugar and ______ units of TV set. At the absence of trade no country can produce more of one product without decreasing in production of the other.

Japan has an absolute advantage in production of __________________.

But Ukraine has comparative advantage in production of ________________

(opportunity costs in production of _________ is equal to _________ and lower than in Japan equal to _______).

Japan has comparative advantage in production of ____________

(opportunity costs in production of ____________ is equal to _________ and lower than in Ukraine equal to _______).

So, Ukraine should produce and export ________ and Japan – _______.

 

Production possibilities of Ukraine and Japan

Сountry The volume of production before specialization The volume of production after specialization
Sugar, t TV set, units Sugar, t TV set, units
Ukraine        
Japan        
TOTAL        

Exercise#4. Please, look through the descriptions below and fill in the blank the corresponding determinants that lead to National Competitive Advantage by M.Porter.

1. _________________________________________________

The world is dominated by dynamic conditions, and it is direct competition that impels firms to work for increases in productivity and innovation.

2. __________________________________________________

The more demanding the customers in an economy, the greater the pressure facing firms to constantly improve their competitiveness via innovative products, through high quality, etc.

3. _________________________________________________

Spatial proximity of upstream or downstream industries facilitates the exchange of information and promotes a continuous exchange of ideas and innovations.

4. _________________________________________________

Local disadvantages in factors of production force innovation. Adverse conditions such as labor shortages or scarce raw materials force firms to develop new methods, and this innovation often leads to a national competitive advantage.

5. _________________________________________________

The way in which companies are established, organized and managed, their set goals are the important factors for success and competitiveness.

Exercise#5. Please, refer the factors below to the corresponding determinants of the Theory of National Competitive Advantage by M. Porter.

1. Antitrust regulation;

2. Customers needs and wants;

3. Discontinuities in input costs such as oil shocks;

4. Educated and skilled work force;

5. Education policies;

6. Existing and future customers needs;

7. Government subsidies;

8. Intense competition in the industry;

9. Internationally competitive related industries that can coordinate and share activities in the value chain when competing or those that involve complementary products;

10. New inventions;

11. Pressure from home market buyers to create more advanced products;

12. Significant shifts in world financial markets or exchange rates;

13. Sizeable demand from sophisticated consumers;

14. Tax laws;

15. The abundance, quality, accessibility and the cost of the nation’s physical resources sush as land, water, mineral deposit, timber, hydroelectric power and fishing grounds;

16. The amount and cost of capital resources that are available to finance industry;

17. The amount of domestic rivalry and the creation and persistence of compatitive advantage in the respective industry;

18. The establishment of local product standards and regulations;

19. The goals that companies seek to attain as well as the motivations of their employees and managers;

20. The nation’s stock of knowledge resources, including scientific, technical and market knowledge that affect the quantity and qualityof goods and services;

21. The presence of internationally competitive supplier industries that create advantages in downstream industries through efficient, early or rapid access to cost-effective inputs;

22. The quantity, skills and cost of the personel;

23. The type, quality and user cost of the infrastructure, including the nation’s transportation system, communications system, health-care system, and other factors that directly affect the quality of life in the country;

24. The ways in which firms are managed and choose to compete.

Factor Conditions    
Demand Conditions    
Related and Supporting Industries  
Firm Strategy, Structure and Rivalry    
Government    
Chance    

 

SELF-CONTROL QUESTIONS

I. Please, answer the questions below.

1. What is the subject matter of the mercantilist policy of the international trade?

2. What is the basis of wealth of nation in mercantilism?

3. What is like a government policy as to international trade by mercantilism? Which measures were applied to fullfill this policy?

4. Is mercantilist policy of the international trade effective to apply? What do you think?

5. What is the subject matter of the theory of international trade by Adam Smith?

6. What is like a government policy as to international trade by Adam Smith theory?

7. What is the basis of wealth of nation by Adam Smith theory?

8. What is specialization?

9. What is meant by “absolute advantage” in the theory of Adam Smith?

10. In what units is absolute advantage measured?

11. What is the interrelation between labor costs and labor productivity?

12. What is the subject matter of David Ricardo’s theory of international trade?

13. What is meant by “comparative advantage” by David Ricardo?

14. What is meant by “opportunity cost” by David Ricardo?

15. What is the subject matter of the theory of national competitive advantage by M.Porter?

16. What are the determinants of national advantage by M.Porter?

17. What are meant by “factor conditions” in the theory of national competitive advantage by M.Porter?

18. By what way does the interaction with related and supported industries effect the competitivness of the product?

19. What is the government role in the Porter’s diamand?

20. What is the chance role in the Porter’s diamand?

 

II. Please, fill in the blank below.

1. Which theory states that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports?

__________________________________________________

2. The term used to describe the quantity of a goods that can be produced per unit of labor input. It is reciprocal of the unit labor requirement: ___________________________________________________________

3. Which theory of internatoinal trade is based on the relative productivities between goods compared with another country? __________________________________________________________

4. A country has a _______________________________when it can produce a goods at a lower opportunity cost than another country.

5. A country has a _______________________________ when the relative productivities between goods compared with another country are the highest.

6. A country has a ___________________________ in the production of a goods if it can produce the good at a lower labor cost than another country.

7. A country has a ___________________________ in the production of a goods if labor productivity in the good is higher than in another country.

8. ________________________________: the value or quantity of something that must be given up to obtain something else.

9. ________________________________: the amount of a goods that must be given up to produce one more unit of another good.

10. _______________________________ arises when a country has a goods with a lower unit labor requirement and a higher labor productivity than another country.

11. An absolute advantage arises when a country has a goods with a lower _____________________________ and a higher _________________________ than another country.

12. ______________________________arises when a country can produce a goods at a lower opportunity cost than another country.

13. A comparative advantage arises when a country can produce a goods at a lower __________________________ than another country.

14. The term used to describe the quantity of labor inputs that takes to produce one unit of goods. It is reciprocal to labor productivity: ___________________________________________________________

15. The determinants of national advantage by M.Porter: ____________________________________________________________________________________________________________________________________________________________________________________________________________

16. The basis of the competitive advantage by M.Porter is the capacity of the industry to _________________________.

 




Дата добавления: 2015-09-11; просмотров: 28 | Поможем написать вашу работу | Нарушение авторских прав

Subject Matter of International Business | FUNDAMENTALS OF MERCANTILISM | N THE LAW OF COMPARATIVE ADVANTAGE | BY M. PORTER | Documentation in International Trade | Efficiency of Exports | Calculating the cost of imports | Consolidated Goods and Services Balance | Table 1. Goods and Services Trade Balance, mln.USD | Table 1. Services Trade Balance |


lektsii.net - Лекции.Нет - 2014-2024 год. (0.016 сек.) Все материалы представленные на сайте исключительно с целью ознакомления читателями и не преследуют коммерческих целей или нарушение авторских прав