강의자료실 - 자료실 - 언장광장(삼척) - KNU광장 - 강원대학교

International

Economics

Eleventh Edition

Introduction

Dominick Salvatore

John Wiley & Sons, Inc.

CHAPTER

O N E

1

Learning Goals:



_{Understand the meaning and importance of}

globalization.



_{Understand the relationship between international}

trade and the nation’s standard of living.



_{Describe the subject matter (trade and monetary}

aspects) of international economics.



_{Identify the major international economic problems}

The Globalization of the World Economy



_{A globalizing world provides opportunities}

and challenges to nations and people in the

world.



_{Flow of goods and services}



_{Flow of labor and jobs}

The Globalization of the World Economy



_{Three periods of rapid globalization}



_1870-1914



_{Resulted from industrial revolution, opening}

up of new resource sources in “regions of

recent settlement”



_{Millions of immigrants, vast amounts of foreign}

investments, increased production

The Globalization of the World Economy



_{Three periods of rapid globalization}



_1945-1980



_{Dismantling of heavy trade protection led to}

The Globalization of the World Economy



_{Three periods of rapid globalization}



_{1980 to present}



_{Most pervasive and dramatic period of}

globalization



_{Fueled by improvements in telecommunications}

and transportation



_{Elimination of restrictions on capital flows led to}

massive international capital movements



_{Anti-Globalization Movement}



_{Claims globalization sacrifices human and}

environmental well-being to corporate profits

of mutinationals



_{Globalization is blamed for:}



_{World poverty and child labor in poor countries}



_{Job losses and lower wages in rich countries}



_{Environmental pollution and climate change}

International Trade and the Nation’s

Standard of Living



_{Interdependence}



_{Economic relationship among nations}



_{Roughly measured as ratio of a nation’s}

imports and exports of goods and services to

GDP



_{Much larger for smaller industrial and}

FIGURE 1-1 Imports and Exports as a Percentage of GDP in

International Trade and the Nation’s

Standard of Living



_{Sources of potential gain for United States:}



_{Access to items with limited availability}

domestically

(such as coffee, bananas, cognac, tin,

tungsten, petroleum and copper)



_{Access to lower cost products}



_{Access to greater product variety}



_{Economic interdependence has been}

increasing over the years.

FIGURE 1-2 Growth of World Production and Trade, 2000-2011

The International Flow of Goods, Services,

Labor and Capital



_{Gravity Model}



_{Other things equal, the bilateral trade between}

two countries is proportional, or at least

positively related, to the product of the two

countries’ GDPs, and the greater the distance

between the two countries, the smaller is their

bilateral trade.



_{That is, the larger (and more equal in size) and}

the closer two countries are, the larger the

The International Flow of Goods, Services,

Labor and Capital



_{The International Flow of Labor and Capital}



_{About 190 million people live in a country other}

than where they were born.



_{Migration is primarily for economic reasons,}

although nations place many restrictions on

migration.



_{In general, capital flows more freely that labor,}



_{International Trade Theory}



_{Analyzes the basis of and the gains from}

international trade.



_{International Trade Policy}



_{Examines the reasons for and the effects of}

restrictions on international trade.



_{Balance of Payments}



_{Measures a nation’s total receipts from and}

total payments to rest of the world.



_{Foreign Exchange Markets}



_{The institutional framework for the exchange of}

one national currency into another.



_{Adjustments in the Balance of Payments}



_{Focuses on the relationship between internal and}

external aspects of the economy of a nation, and

their interdependence with rest of the world

economy under different international monetary

systems.



_{Deep financial and economic crisis}



_{Trade protectionism in advanced countries}



_{Excessive fluctuations and misalignments in}

exchange rates and financial crises



_{Structural imbalances in US, slow growth in}

Europe and Japan, and insufficient restructuring

in transition economies



_{Deep poverty in many developing countries}



_{Resource scarcity, environmental degradation,}

climate change and sustainable development

Current International Economic Problems,

Continued

Organization and Methodology of the Text

Part One

(Chapters 2-7)



_{International Trade Theory}

Part Two

(Chapters 8-12)



_{International Trade Policies}

Part Three

(Chapters 13-15)



_{Balance of Payments, Foreign Exchange}

Part Four

(Chapters 16-21)

Case Study 1-1: The Dell PCs, iPhones, and

iPads sold in the United States Are Anything

but American

Case Study 1-3: Is India’s Globalization

Harming the United States?

Case Study 1-4: Rising Importance of International

Trade to the United States

Case Study 1-5: Major Net Exporters and Importers of

Capital



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

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