1 / 15

Understanding Global Market

Understanding Global Market. David Ricardo shapes modern economy. It is better to trade than to produce everything on your own. If You Were Sumanto , What Would You Do?.

fay-cantrell
Download Presentation

Understanding Global Market

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Understanding Global Market

  2. David Ricardo shapes modern economy

  3. It is better to trade than to produce everything on your own

  4. If You Were Sumanto, What Would You Do? • Sumanto is a gifted painter as well as superb carpenter. He need one day to finish a drawing, as well as a furniture. A painting is worth $400 and a furniture is worth $350 • Sumanto’s neighbor called Hannibal, is exactly as skillful as he is. The only difference, Hannibal needs 3 days to finish a painting and 1.5 days for a furniture. • You absolutely have advantage over Hannibal. DO YOU? ;)

  5. Let’s Compare!! Before Trade After Trade (Specialization) For 6 day work, Sumanto earned $2400 in total VS Hannibal $1400 Total production is 10 unit • For 6 day work, Sumanto earned $2250 in total VS Hannibal $1100 • Total production is 9 production unit

  6. Comparative advantage stipulates that countries should specialize in a certain class of products for export, but import the rest - even if the country holds an absolute advantage in all products

  7. ElecHeckscher and Bertil Ohlin

  8. Factor Proportion Theory revises Ricardo’s theory. It explains the factor behind Comparative Advantage.

  9. COMPETITIVENESS

  10. How to Measure Competitiveness?

  11. REER Index: Indonesia ManaDatanya? #Facepalm

  12. ManfaatPerdaganganInternasional • Menghasilkandevisanegara • Memperolehbarang yang tidakdapatdiproduksidinegarasendiri • Buah Kiwi & Cherry • Memperolehbarangdenganhargamurah • Hargagula putihmeroket, pemerintahimporgula putih • Memperluaspasardanmenambahkeuntungan • Economy of scale • Menimbulkanlapangankerja • Meningkatkankemampuan SDM yang handal • Transfer teknologi modern

More Related