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1、International Trade,Made by Stanney,Warming-up,1.What is international trade?International trade,also called international business or foreign trade,occurs when goods and services are exchanged across national boundaries.Nowadays when talking about international trade we do not,Warming-up,1.What is
2、international trade?just mean selling and buying goods on an international scale but also some cross-border economic activities such as overseas investment and contracted projects.,Warming-up,1.What is international trade?International trade takes place within the framework of agreements worked by c
3、ountries in the World Trade Organization(WTO).,Warming-up,2.What do you think about international trade?For or against international trade.,Why do nations trade with each other?The answer is simple:Because we can receive benefits or make gains from it.The chief benefits from international trade.(1)H
4、elping to raise the living standards of the people;Take the United States.A great deal of its high standard of living depends on internation trade.Without international trade the United States cannot become a kingdom of automobiles because most of its oil is imported from abroad.,(2)Helping to upgra
5、de a countrys modernization Foreign trade can help a nation make money in the form of foreign exchange which can be used to finance its purchases of high technology needed for upgrading its modernization and speeding up its industrialization process.(3)Helping to solve a countrys shortage of capital
6、 A lot of worlds enterprises,especially those of the developing nations,are in desperate need of capital,for their,expansion,for employing workers,for buying raw materials,for purchasing advanced equipment and so on.Such a problem can be solved by attracting foreign investment through forming joint
7、ventures.(4)Helping to solve unemployment problem For both developed coutries and developing countries,export trade can provide more employment opportunities.,(5)Helping to promote mutual understanding and friendship between trading partners Through foreign trade a country can learn more about the e
8、conomic situation,legal system,culture and customs of its partners.Business people of different conutries become friends by trading with one another.(6)Helping to boost a countrys competitiveness in the world market,If a domestic business wants to gain market access to a foreign country,it must be a
9、ble to compete with its rivals with high quality goods,attractive designs,and better after-sales service.(7)Helping a country to accelerate its overall economic growth A case in point.In 1970 living standards in Ghana(well-known for its cocoa)and South Korea were roughly comparable.,Ghanas GNP per c
10、apita was 250,and South Koreas was 260.By 1995,the situation had dramatically changed.South Korea had a GNP per capita of 9,700 while Ghanas only 390,reflecting vastly different economic growth rates.Between 1968 and 1995,the average annual growth rate in Ghanas GNP was under 1.4%.In contrast,South
11、Korea achieved a growth rate of about 9%annually in the same period of time.,Why the sharp difference?Of course there is no easy answer because many factors affect a countrys growth.But one thing is certain,that is,the South Korea government implemented policies that encouraged companies to engage i
12、n internation trade,while the actions of the Ghanaian government discouraged domestic producers from becoming involved in international trade.,“Every time we buy a foreign car we put someone else out of work.”-Woodrow Wyatt,British politician and writer.Importing causes unemployment,Warming-up,3.Why
13、 some people in our country choose imported goods rather than domestically produced goods?High qualityFashion styleGood design Reliable Durable,Start up,Do you know any international trade organizations?世界贸易组织(WTO),国际货币基金组织(IMF-the International Monetary Fund),世界银行(国际复兴开发银行 the International Bank fo
14、r Reconstruction and Development),国际商会(The International Chamber of Commerce,ICC),中国国际贸易促进委员会(CCPIT-China Council for the Promotion of International Trade),Start up,Free Trade or Protectionism?Free trade is a system of trade policy that allows traders to act and or transact without interference from
15、 government.It is aimed at elimination of all restrictions on trade with other countries or nations.,Classical economists like Adam Smith,believe free trade will help the world to achieve the most efficient utilization of its resources,maximize world welfare and accumulate capital.Under a free trade
16、 policy,prices are a reflection of true supply and demand,and are the sole determinant of resource allocation.In todays world no government is really or completely following this type of trade policy.,Protectionism:It means a trade policy by which a government set up controls over its import trade f
17、or the purpose of protecting its economy from foreign competition and provides preferential treatment and subsidies to its own exporters or exporting firms.Almost every conutry in one way or another pursues this kind of trade policy.Trade Barriers(贸易壁垒)(1)Quotas 配额 A quota is a quantitative restriction that isexpressed in terms of either physical quantity,or value.(2)Tariffs 关税 It is a duty to or fee levied on goods being imported into the country.,
