The reasons for international trade
A. The uneven distribution of natural resources B. International specialization C. Different Patterns of demand among nations D. Economies of scale E. Innovation or variety of style
Keyboard
Japan
Case and final Assembly U.S
Even the Boeing 777 Isn’t All American
The suppliers come from U.S. ,Japan, France, Canada, Italy, Australia, South Korea, United Kingdom So it is increasingly difficult to say what is a “U.S.” product; what is “Japanese” product.American
Total manufacturing Portion made
cost: US$860
overseas:
US$625
$860
In u.s. owned plants $230
In foreign-owned plants $395
International trade can be defined as the exchange of goods and services produced in one country (or district) with those produced in another country(or district).
1.2. The history of international trade development The first beginning of international trade
The development of international trade in different social period
1.4.3. trade balance favorable balance: export >import (surplus) adverse balance: export<import (deficit)
1.4.4. commodity structure primary commodities Industry commodities (finished goods)
1.4 . Another basic concepts about international trade
1.4.1. amount of foreign trade total amount of import and export for a country in
definite period. 1.4.2. amount of international trade total amount of export for all countries in definite period.
Chapter 1 Introduction to International Trade
International Trade
Chapter 1 Introduction to International Trade
1.1 The definition of international trade
$625 73%
Distribution of Manufacturing Parts
Monitor
Korea
Semiconductors
Japan
Power supply
Japan
Graphics Printer
Japan
Floppy Disk Drives
Singapore
Assembly of disk drives U.S
1.5.1. different effect to economy development 1.5.2. different environment
1.3.4 Direct Trade / Indirect Trade / Entrepot Trade 1.3.5 Trade by Roadway / Trade by Seaway /
Trade by Airway / Trade by Mail Order 1.3.6 Free-Liquidation Trade / Barter Trade
Canada Australia, East Europe) General Import / General Export
Special Trade: Customs Territory.(German, Italy, Swiss)
1.3.3. Visible Trade / Invisible Trade
1.3. The different forms of international trade
1.3.1.Export Trade / Import Trade / Transit Trade Re-Export / Re-Import; Net Export / Net Import
1.3.2. General Trade / Special Trade General Trade: country territory. (Japan,United Kingdom,
1.4.5. factors of production a. capital, b. human resources or labor c. property resources including land
1.5 The difference between domestic trade and international trade