International trade
Chapitre 1 - Why study international trade?
Chapitre 1 - Why study international trade?
Set of flashcards Details
| Flashcards | 18 |
|---|---|
| Language | Français |
| Category | Macro-Economics |
| Level | University |
| Created / Updated | 08.01.2018 / 16.04.2021 |
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What are the key questions relative to international trade?
- Why do countries trade?
- What do countries trade?
- Who gains from trade?
- How and why do governments intervene in trade?
What are the four big times since 1850?
- 1850 - 1914 : First globalization
- 1914 - 1945 : Closure
- Re-opening 1945 - : Seconde Globalization
- The crisis of 2008 : Hiccough of Slip up?
What are the main important things during the first globalization?
- Repeal of the corn laws 1846 : UK starts to import food in exchange for industrial goods
- Global capitalism spread through conquest and colonialism
- Huge reductions in transports costs (Suez Canal 1869)
- Improvements in communications (English Channel in 1851)
- Mass migrations : europe to the new world
- Foreign direct investment : ditto
- Enormous growth in trade helped by state currencies : gold standard.
What are the main important topics during the closure?
- Global financial system failed. UK's role declined, US was not ready to assume the role
- Gold standard failed in 1920
- State-led anti-trade regimes : Bolchevik revo 1917 ; Fascism in Italy, Nazism in Germany, Spanish civil war 1936, Revolutionnary regime in Mexica, authoritarian regimes in Argentina, Brazil, Chile
- Great depression in 1930s
- Collapse of world trade : US : Smooth Hawley tariff 1930
What are the main important topics during the second globalization?
3 blocks until late 1980s :
- 1/3 world's population : Socialist
-1/2 of world's population : State led industrialization
-1/6 of worlds population : Capitalis
Capitalist model increasingly dominant :
- Technological dominance of US
- Europe integration : EEC 1957, EU 1992
- Fall of Berlin wall 1989
- State led industrialization failed to produce growth
How can we explain that many more things can now be trade?
- Result of lower transport cost : Containerization and airfreight
- Desinteegration of production : long and complex supply chains
What can we say about the crisis of 2008?
Collapse of the world trade : the great trade collapse not as large as that of the GDepression but much steeper.
Why the world trade in value declined again in 2015?
Because there is a fall in commodity prices.
Who trades with whom?
-Europe and america combined account for over 1/2 of world exports
- Asia accounts for another 1/4 of world exports.
What are the two variables which explain the biggest trade?
- The size of countries matters : trade increases with size (Europe and america)
- The distance between two countries matters : trade decreases with distance (The vast majority of EU trade within the EU)
What is the gravity equation in trade?
Tinbergen, Anderson, and Van Wincoop 2003. Explanatory power. Inter-national vs intra national trade.
What do countries trade?
US imports 1925 - 2009 and US exports 1925-2009
What are the new type of trade?
- Intra industry trade
- Trade between frims
- Production chain segmentation and outsourcing
What are the two types of models to explain why do countries trade?
- Old trade theory : based on comparative advantage : explain north south trade
- New trade theory : based on economies of scale : explain north north trade.
What are the 3 flows between countries?
- products (goods and services)
- people
- capital
Definition of GDP
value of all finals goods produces in a year
Definition of trade barriers
refers to all factors that influence the amount of goods and sevrices shippe across international boarders
Definition of migration
who were living in a country other than the one in which they were born.
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