1 / 35

INTERNATIONAL ECONOMICS

INTERNATIONAL ECONOMICS. Carl Liedholm. Professor, Economics. INTERNATIONAL TRADE. BASIC FACTS. The world’s largest exporter in absolute terms A relatively “closed” economy (X/GDP low) Largest trading partner is China Largest trading partner is Mexico None of the above.

lilah
Download Presentation

INTERNATIONAL ECONOMICS

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. INTERNATIONAL ECONOMICS

  2. Carl Liedholm Professor, Economics

  3. INTERNATIONAL TRADE BASIC FACTS

  4. The world’s largest exporter in absolute terms A relatively “closed” economy (X/GDP low) Largest trading partner is China Largest trading partner is Mexico None of the above Which of the following is true about the United States and its international trade role?

  5. WORLD EXPORTS – 2009MERCHANDISE 1) 2) GERMANY $ 1.11 Trillion 3) U.S. $ 1.06 Trillion 4) JAPAN $ 0.58 Trillion 5) NETHERLANDS $ 0.50 Trillion

  6. OPENNNESS MEASURE EXPORTS/GROSS DOMESTIC PRODUCT

  7. EXPORTS/GDP GERMANY 37% CANADA 36% CHINA 36% WORLD AVERAGE 25% JAPAN 12% UNITED STATES ___

  8. U.S TRADING PARTNERS

  9. U.S TRADING PARTNERS (Percent of US Exports)2009 1) MEXICO 12 % CHINA 6 % JAPAN 5 % U.K. 4 % GERMANY 4%

  10. The world’s largest exporter in absolute terms A relatively “closed” economy (X/GDP low) Largest trading partner is China Largest trading partner is Mexico None of the above Which of the following is true about the United States and its international trade role?

  11. GLOBALIZATION *

  12. GROWTHSINCE 1950 WORLD TRADE 25X WORLD OUTPUT 8X

  13. Recent Period 6 % 2 % -12 % * +13 %

  14. GLOBALIZATION NOT A NEW PHENOMENON Expansion of Roman Empire Voyages of Discovery End of Napoleonic Wars

  15. PRIMARY DRIVING FORCESOF RECENT WAVE OF GLOBALIZATION REDUCTION OF TRADE BARRIERS *

  16. Trade and welfare slide 17

  17. Effect on U.S. Household $1 Trillion/year $10,000/ household per year

  18. 2. TECHNOLOGICAL CHANGE

  19. 3. EMERGENCE OF NEW COUNTRIES 1) 2) 3)

  20. EFFECT ON JOBS

  21. EFFECT ON TRADE BALANCE IMPORTS NOW GREATLY EXCEED EXPORTS

  22. U.S. FOREIGN TRADE DEFICIT2010 CURRENT ACCOUNT DEFICIT - $ 470.2 Billion 3.2 % of GDP

  23. INTERNATIONAL ACCOUNTING CURRENT ACCOUNT (Goods and Services Transactions) + FINANCIAL ACCOUNT (Purchase and sale of Assets) = 0

  24. INTERNATIONAL ACCOUNTING CURRENT ACCOUNT -$470 Billion + FINANCIAL ACCOUNT +$470 Billion (Liability to Foreigners) = 0

  25. INTERNATIONAL FINANCE *

  26. : $ *

  27. The coins used in colonial America were primarily:: British (Shillings and Pounds) Spanish (Pieces of Eight) German (Thalers) French (Ecus) Dutch ( Ducatoons)

  28. Title

  29. EXCHANGE RATE PRICE (RATIO)OF ONE CURRENCY IN TERMS OF ANOTHER L/$ CURRENCY ON BOTTOM KEY

  30. EFFECT OF FALLING DOLLAR MAKES U.S. FIRMS MORE COMPETITIVE INTERNATIONALLY LOWERS PRICE OF U.S. GOODS ABROAD INCREASES PRICE OF IMPORTED GOODS

More Related