International Economics

Why? What?

How?

International Economics

Chapter 1 Introduction

IntroductionWhat is International Economics

About? International Economics: Trade

and Money

The study of international economics has never been as important as it is now.At the beginning of the 21st century, nations

are more closely linked through trade in goods and services, through flows of money, and through investment in each others’ economies than ever before.

Globalization

International Trade Liberation

Economic Globalization

International Production Integration

International Financial Market Integration

Better or worse?

International economics deals with economic interactions that occur between independent nations. The role of governments in regulating international trade

and investment is substantial. Analytically, international markets allow governments to

discriminate against a subgroup of companies. Governments also control the supply of currency.

There are several issues that recur throughout the study of international economics.

1-1 What is International Economics About?

Balance between liberalism and Protectionism

Exporter Importer

Government

Free Trade Protection

国际经济学的主要问题 1 、学科性质：从成本和收益角度研究国家之间经济的相互依存关系，

分析各国间要素流动的状况和原因，探讨国际经济政策的效应和作用。

2、学科内容： 1 ） International trade theory—— 研究为什么要进行国际贸易，

贸易基础和所得 (1-7 章） 2) International trade policy—— 考察贸易限制和新贸易保护

主义的原因和效果 (8-11) 3) Exchange rates and open-economy macroeconomics—— 汇率

决定，汇率制度和政策，外汇市场的运行（ 12－ 17 ） 4 ） International macroeconomic policy—— 国际货币体系，经

济一体化和货币一体化 （ 18 － 22 ）

Its role in the systematization of Economics

EC

Microeconomics

MacroeconomicsInternational

Trade

International

Economics International Finance

Many people are skeptical about importing goods that a country could produce for itself.(P3)

When countries sell goods to one another, all countries benefit.

Trade and income distribution• International trade might hurt some groups within

nations.• Trade, technology, and wages of high and low-

skilled workers.

The gain from trade

The Pattern of Trade (who sells what to whom?)Climate and resources determine the trade patter

n of several goods.In manufacturing and services the pattern of trade

is more subtle.There are two types of trade:

• Interindustry trade depends on differences across countries.

• Intraindustry trade depends on market size and occurs among similar countries.

pattern of trade

Cloth

IT

Toy

Machine Oil

Tech

Tulip

Soybean

How Much Trade?Many governments are trying to shield certain

industries from international competition.This has created the debate dealing with the costs

and benefits of protection relative to free trade.• Advanced countries’ policies engage in industrial

targeting.• Developing countries’ policies promote

industrialization:• Import substitution versus export promotion

industrialization.

The Balance of PaymentsSome countries run large trade surpluses.

• For example, in 1998 both China and South Korea ran trade surpluses of about $40 billion each.

Is it good to run a trade surplus and bad to run a trade deficit?

Exchange Rate DeterminationThe role of changing exchange rates is at the

center of international economics.

International Policy Coordination A fundamental problem in international economics is

how to produce an acceptable degree of harmony among the international trade and monetary policies of different countries without a world government that tells countries what to do.

The International Capital Market There are risks associated with international capital

markets:• Currency depreciation• National default

1-2 International Economics: Trade and Money

International trade analysis focuses primarily on the real transactions in the international economy.• These transactions involve a physical movement of

goods or a tangible commitment of economic resources.– Example: The conflict between the United States and

Europe over Europe’s subsidized exports of agricultural products

International monetary analysis focuses on the monetary side of the international economy. • That is, financial transactions such as foreign

purchases of U.S. dollars.– Example: The dispute over whether the foreign

exchange value of the dollar should be allowed to float freely or be stabilized by government action

International trade issuesPart I: International Trade TheoryPart II: International Trade Policy

International monetary issuesPart III: Exchange Rates and Open-Economy

MacroeconomicsPart IV: International Macroeconomic Policy

五、本书的结构和学习方法

1 、 结构 2 、 学习安排 1 ）主要以学习正文为主，若要得到进一步的证明，深化讨论，可看附录

 2 ）文中的例子和案例是为加强理解而设，需阅读，在讲授中还有中国的相关案例提供

 3）关键词表中英文必须掌握，考试中概念题就在这范围内。 4）结合每章的小结做复习题，以掌握重点内容。 5）练习题的目的是提高应用能力，是考试的重点部分 6）要预习。

六、中文参考文献 本书中译本， 2006 ，中国人民大学出版社 保罗。克鲁格曼 ,2001, 克鲁格曼国际贸易新理论 ,2001, 中国社会科学出版社

赵春明 ,2003: 国际贸易学 ,石油工业出版社 蒙代尔 ,2003: 蒙代尔经济学文集（第一卷） ,中国金融出版社

杂志：经济研究，管理世界，世界经济 , 国际贸易问题，国际贸易，世界经济研究，世界经济文汇等。

主要网址： WWW.WTO.ORG.  WWW.IMF.ORG. WWW.OECD.ORG.          WWW.UNCTAD.ORG. WWW.BIS.ORG. 

《国际经济学》教学基本要求

至少读两本书和一份专业期刊 写一篇文章 理论性文章 案例分析 文献综述 读书笔记 参加课堂讨论

Contact Me

fangxia0715@tom.comfangxia@zjgsu.edu.cn

Office Hours: Monday 10:00 – 12:00 in room 1849 and by appointment

Topic Financial Crisis

Low-income countries gain or lose in a globalized world?

美国摩根斯坦利银行首席经济学家史迪芬 .罗奇认为中国对世界经济增量的贡献远高于中国经济占世界 GDP 比重，原因是中国经济增长对世界经济增长有某种乘数效应，其原因是中国经济的对外开放程度非常高。他从两个方面来判断中国的经济开放度：一是中国的外贸依存度，目前已高达 70% 以上，远远超过日本 (25%) 、美国 (20%) ；二是外资利用度，除一些战略性领域外，中国基本都对外国实行开放，目前已累计利用外资 6000亿美元，成为世界上对外资最开放的国家之一。目前美国经济增量的比率为 30% ，罗奇形象地将中国和美国比喻为波音 747飞机的两个发动机。

世界贸易组织的相关研究表明，上世纪 90年代，中国贸易增长度是5.7% ，超过了日本的 5.1% ，仅低于美国的 18.5% 和欧盟扩大前的 15国总体的 12.2% 。世界银行认为，中国经济快速发展对世界的最大贡献是促进了贫困人口的大幅度下降，如果不包括中国， 1987年至1998 年全球贫困人口增加 8200万，而中国则减少 800万。 

China World

China World

China gain or lose in a globalized world?

0. 000

5000. 000

10000. 000

15000. 000

20000. 000

25000. 000

30000. 000

35000. 000

GDP

年份 进出口总额（亿美元）

世界排名 GDP（人民币）

1950 11亿美元1977 148

1978 206.4 32

1997 2696.7 10

2002 6208 5 102398亿2003 8512 4 116693.6亿2004 1.15万亿 3 136515亿2005 1.42万亿 3 182321亿2006 1.76万亿 3 210871亿2007 2.17 万亿 3 246637亿

2008 2.56 亿美元 300670亿元

0

5

10

15

20

25

30

35

40

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

EX/GDP I M/GDP

Figure 1-1: Exports and Imports as a Percentage of U.S. National Income

0

2

4

6

8

10

12

14

16

18

20

2000 2001 2002 2003 2004 2005 2006 2007 2008

EX/ GNI I M/ GNI

Figure 1-2: Exports and Imports as Percentages of National Income in 1994

Exports and Imports as Percentages of National Income in 2007

0

20

40

60

80

100

美国 法国 加拿大 比利时

EX/GNI I M/ GNI

International trade for World

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

货物出口额 服务贸易出口额 出口总额

World merchandise exports by major product group and region, 2006 　 　 　 　

　

Agricultural product

sFuels and mining

products Manufactures

　 　 Total Fuels Total

Iron and steel

Chemicals

Office and

telecom equipme

nt

Automotive

products

Textiles

Clothing

World 944.5 2277.1 1770.5 8256.8 374 1247.8 1451.4 1015.9 218.6 311.4

Share in total exports 8 19.3 15 70.1 3.2 10.6 12.3 8.6 1.9 2.6

North America 151.6 221.5 151.2 1233.2 23.2 173.7 198.1 204.3 17.2 13

Share in total exports 9 13.2 9 73.5 1.4 10.4 11.8 12.2 1 0.8

South and Central America 102.4 182.2 110.5 134.9 17.3 24.5 6.4 19.1 2.9 12.8

Share in total exports 23.8 42.4 25.7 31.4 4 5.7 1.5 4.4 0.7 3

Europe 436 534 361.6 3890.3 177.1 743.2 427.1 549.8 82.8 107.1

Share in total exports 8.8 10.8 7.3 78.4 3.6 15 8.6 11.1 1.7 2.2

Africa 32 249 225.1 71.2 7 11.3 2.4 5.4 1.6 9.8

Share in total exports 8.8 68.5 62 19.6 1.9 3.1 0.7 1.5 0.4 2.7

Middle East 13.8 480.8 468.9 138.2 4.7 37.1 14.8 8.4 8 4.3

Share in total exports 2.1 74.5 72.7 21.4 0.7 5.7 2.3 1.3 1.2 0.7

Asia 179.1 334.7 215.3 2683.2 105.8 235.8 801.4 223.5 104.4 162.8

Share in total exports 5.5 10.2 6.6 81.9 3.2 7.2 24.4 6.8 3.2 5

International trade for the world

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

4500000

1980 1990 2000 2005 2006

亚洲

东亚

EU15

NAFTA

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

1980 1990 2000 2005 2006

亚洲

东亚

EU15

NAFTA

Export Import

EX 17%

13%

8%

5%

4%3%3%2%

2%2%

41%

美国

香港

日本

韩国

德国

荷兰

英国

印度

新加坡

俄罗斯

其它

I M

14%

10%

9%

7%

6%5%4%

3%3%

3%

36%

日本

韩国

台湾省

中华人民共和国

美国

德国

澳大利亚

马来西亚

沙特阿拉伯

巴西

其它

Appendix: A review of International Trade

Before 15 century 15 century- 16 century 16 century- 19 century 1945 －

Before 15 century

Phonenica (Mediterranean Sea )

Rome Han Dynasty Kushan Empire Crusades

15 century- 16 century

Age of Discovery Portugal Spain Netherlands France England

16 century- 19 century

Industrial Revolution the Age of Machines

Appendix:International Trade Theory before the Ricardian Model

Mercantilist: keep the state prosperous by economic regulation

David Hume Francios Quesnay Adam Smith

David Hume （ 1711-1776 ）

deny the the inflow of gold specie could be sustainable——the Price-Specie-Flow Mechanism

Francios Quesnay (1694-1774)

The leader of ‘ Physiocrats’（重农学派）

ABSOLUTE ADVANTAGE

Adam Smith Absolute Advantage A country has an absolute advantage in

a production of a good if it has a lower unit labor requirement than the foreign country in this good.(P15)

A Numerical Example

Assume that we are dealing with an economy (which we call Home). In this economy:Labor is the only factor of production.Only two goods (say wine and cheese) are

produced.The supply of labor is fixed in each country.The productivity of labor in each good is fixed.Perfect competition prevails in all markets.

A Numerical Example• The following table describes the technology of

the two counties:

Country Cheese Wine

A 1 hour per pound

2 hours per gallon

B 2 hours per pound

1 hour per gallon

Gain

Cheese WineP C P C

A 1 1 1 1

B 1 1 1 1

如果 cheese产品和 wine产品以 1： 1的比率交换A国 3 1 0 2

B国 0 2 3 1