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International economics

By Patrick King,2014-12-01 09:55
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International economicsInte

International economics

    Target: understand the reasons of the economic phenomenon.

     Subject 1: 国际贸易理论的微观基础

     Subject 2: 古典贸易理论

    重商主义

    Mercantilism

    The government controls the trade to ensure the capital of the country will not go to the others countries. They will accumulate the gold and silver, give export subsidies, make a high tariff, maximizing the use of domestic resources.

    依靠贸易顺差

    限制了贸易的发展

2.亚当?斯密的自由贸易思想 Adam Smith

     The invisible hand: first coined by Adam Smith. It means that the self-regulating nature of the market. People all want to maximize their own gains, and it will benefits the whole society.

    ;Smith think:

    If one country has the absolute advantage of a production, it has less cost than other countries, this country should focus on this production, and gain profit from trade. e.g. the Needleman buy shoes from a shoe-maker, and the shoe-maker engages the Needleman to make cloth for him.

?三?大卫李嘉图的比较优势理论Comparative Advantage

     The comparative advantage refers to the ability of a country to produce a particular good or service at a lower opportunity cost. Even if one country is more efficient in the production of all goods (absolute advantage) than the other, both countries will still gain by trading with each other, as long as they have different relative efficiencies.

    评价!

    ; Adam Smith explained the base of the trade by the cost of production. And

    Ricardian demonstrated that the different of labor costs is the

    determinant of trade, and all countries will gain profit from the

    trade.

    ; Using labour as the only input.

     Subject 3: 要素禀赋理论

    要素禀赋The factor-proportions theory

    The theory states that a country’s comparative advantage is determined by its initial resource endowments.

    Capital intensive 资本密集型 K/L

    Labor intensive 劳动密集型 K/L

     Capital-to-labor ratio(k/l) 资本劳动比

     Subject 4: 特定要素理论

     Subject 5: 规模经济、不完全竞争与国际贸易

    Scale economics: The scale of production increases, the efficiency of the production will increase, and the cost of each product will decrease.

    Why the scale economics is the cause of trade: 1. each country can produce limited category of products by the scale economics.

    2. through international trade, increase the types of goods available for consumption. Imperfect competition

    Forms of imperfect competition include:

    ; Monopoly垄断, in which there is only one seller of a good.

    ; Oligopoly寡头垄断, in which there are few sellers of a good.

    ; Monopolistic competition, in which there are many sellers producing highly

    differentiated goods.

    ; Monopsony, in which there is only one buyer of a good.

    ; Oligopsony, in which there are few buyers of a good.

    Information asymmetry when one competitor has the advantage of more or better information.

    If there are more sellers in the market, the average cost of the product will be higher. If there are more sellers in the market, the price of the product will be lower. And if there are more sellers, more kinds of products, the customers will gain more benefit.

     Subject 6: 国际要素流动——见投资

     Subject 7: 国际贸易政策——见关税 配额 出口补贴

     Subject 8: 区域经济一体化与关税同盟理论

一、区域经济一体化的形式

    ; 包括以下五种形式!

    自由贸易区 free trade area

    A trade bloc whose member countries have signed a free-trade agreement (FTA), which eliminates tariffs, import quotas, and preferences on most (if not all) goods and services traded between them.

    关税同盟 customs Union

    A customs union is a type of trade bloc which is composed of a free trade area with a common external tariff. The participant countries set up common external trade policy, but in some cases they use different import quotas.

    共同市场 common market

    The freedom of movement of the factors of production and services, the participant countries have the same tariff barrier to other countries.

    经济联盟 economic union

    The have both common policies on product regulation, freedom of movement of goods, services and the factors of production (capital and labour) and a common

    external trade policy. The countries often share a common currency. 完全的经济一体化 economic integration

    Economic integration refers to trade unification between different states by the partial or full abolishing of customs tariffs on trade taking place within the borders of each state. This is meant in turn to lead to lower prices for distributors and consumers (as no customs duties are paid within the integrated area) and the goal is to increase trade.

     Subject 2: 外汇市场

    The foreign exchange market (forex, FX, or currency market) is a global, worldwide-decentralized financial market for trading currencies. The foreign exchange market assists international trade and investment, by enabling currency conversion. The foreign exchange market is the most liquid financial market in the world. Traders include large banks, central banks, institutional investors, currency speculators, corporations, governments, other financial institutions, and retail investors.

    外汇市场的功能

    国际清算(International Clearing)

    国际信贷(International Credit)

    套期保值(Hedging)

    A hedge is an investment position intended to offset potential losses that may be incurred by a companion investment.

    外汇投机(Foreign Exchange Speculation)

Exchange Price

    Foreign exchange rate: exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency.

Quotation

    直接标价法(Direct Quotation) : 1 foreign currency unit = x home currency units

    e.g. 1 美元=8.27人民币,则汇率上升表示外币升值,本币贬值。?中国角度?

    间接标价法(Indirect Quotation): 1 home currency unit = x foreign currency units

    e.g. 1美元=8.27人民币,则汇率上升表示本币升值,外币贬值。?美国角度?

    Note that, using direct quotation, if the home currency is strengthening (i.e., appreciating, or becoming more valuable) then the exchange rate number decreases. Conversely if the foreign currency is strengthening, the exchange rate number increases and the home currency is depreciating.

汇率制度

    浮动汇率制(Floating Rate System)

    A floating exchange rate the currency's value is allowed to fluctuate according to the foreign exchange market(supply and demand). Exchange rates for such currencies are likely to change almost constantly as quoted on financial markets, mainly by banks, around the world.

    As floating exchange rates automatically adjust, they enable a country to dampen the impact of shocks and foreign business cycles

    固定汇率制(Fixed Rate System)

    A fixed exchange rate, sometimes called a pegged exchange rate, a currency's value is matched to the value of another single currency or to another measure of value, such as gold. Mundell-Fleming model: argues that an economy cannot simultaneously maintain a fixed exchange rate, perfect capital mobility, and an independent monetary policy. It can choose any two for control, and leave third to the market forces. With perfect capital mobility, a fixed exchange rate prevents a government from using domestic monetary policy in order to achieve macroeconomic stability.

    A fixed exchange rate is usually used to stabilize the value of a currency against the currency it is pegged to. This makes trade and investments between the two countries easier and more predictable,

    Criticism: The main criticism of a fixed exchange rate is that flexible exchange rates serve to automatically adjust the balance of trade. Balance of payment model Under fixed exchange rates, this automatic rebalancing does not occur.

    Pegged floating currencies are pegged to some band or value, either fixed or periodically adjusted

a dirty float currency regime 肮脏浮动?政府参与?

1.汇率变动对贸易的影响!

    本币贬值,有利于扩大出口,抑制进口

    2.汇率变动对资本移动的影响_____资本外流。

    3.汇率变动对本国物价的影响____本国物价上涨,引发通货膨胀

    4.对产业结构及资源配置的影响

    本币贬值将导致国内资源向贸易部门流动,生产扩大。

    National central banks play an important role in the foreign exchange markets. They try to control the money supply, inflation, and/or interest rates and often have official or unofficial target rates for their currencies. They can use their often substantial foreign exchange reserves to stabilize the market.

     Subject 3: 汇率理论?上?

    铸币平价理论!

    黄金输送点!Gold Points

     Gold Export Point: the upper limits of the exchange is that the freight fee + Gold Parity.

     Gold Import Point: the lower limit, Gold parity freight fee.

    In the exchanges rates between gold-standard countries, these limits were known as the gold points, for the reason that, if the price of foreign bills rose above the upper limits determined by the exchange rate, countries would find it cheaper to export gold than to export bills for the purpose of settling international accounts. Conversely, if the exchange rate fell below the lower limit of the determined rate, countries would find it cheaper to import gold than to sell bills to foreign creditors.

二、购买力平价理论Purchasing Power Parity

一价法则”(Law of one price)

    In an efficient market, all identical goods must have only one price." Absolute PPPthis theory assumes that equilibrium in the exchange rate between two currencies will force their purchasing powers to be equal.

     e.g. 巨无霸的故事

    Relative PPPpredicts a relationship between the inflation rates of two countries over a specified period and the movement in the exchange rate between their two currencies over the same period.

Balance of payments model

    This model holds that a foreign exchange rate must be at its equilibrium level - the rate which produces a stable current account balance. A nation with a trade deficit will experience reduction in its foreign exchange reserves, which ultimately lowers (depreciates) the value of its currency. The cheaper currency renders the nation's goods (exports) more affordable in the global market place while making imports more expensive. After an intermediate period, imports are forced down and exports rise, thus stabilizing the trade balance and the currency towards equilibrium. Fluctuations in exchange rates A market based exchange rate will change whenever the values of either of the two component currencies change. A currency will tend to become more valuable whenever demand for it is greater than the available supply. It will become less valuable whenever demand is less than available supply. Increased demand for a currency is due to either an increased transaction demand for money or an increased speculative demand for money.

    Hedging is an investment position intended to offset potential losses that may be incurred by a companion investment.

    A currency future, or foreign exchange future, is a futures contract to exchange one currency for another at a specified date in the future at a price that is fixed on the purchase date. A foreign exchange option (commonly shortened to just FX option or currency option) is a derivative financial instrument, the owner has the right but not the obligation to exchange money into another currency at a pre-agreed exchange rate on a specified date.

    Futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today (the futures price or the strike price) but with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange.

    Option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction.

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