introduction to international tr

challenge: excess liquidity， pollution, environmental damage and trade friction.

十几年贸易顺差——excess liquidity(流动性过剩)——通货膨胀——保值——投资过剩——泡沫——资源浪费——通货膨胀

international trade is the fair and deliberate exchange of goods and services across national boundaries

visible goods = trade in goods

invisible goods = trade in services

why do countries trade?

1.resource reasons

no nation has all of the economic resources(land, labor, capital) that it needs.

barter: trade item for item

2.economic reasons

a country often does not have enough of a particular item to meet its needs.

one nation can sell some items at a lower cost than other countries, and can produce some item more efficiently than other countries.

trade for economic benefits

3.preference reasons

(comparative cost theory)

innovation of style/diversification

customers don't like the same products

4.other reason

transportation, insurance, tourism

How is international trade measured?

1.balance of trade 贸易差额

a nation's relationship of exports to imports

a favorable balance of trade = trade surplus

unfavorable balance of trade = trade deficit

2.balance of payment

the difference between money coming into a country(from exports) and money going out of the country (for imports)

an indicator of a nation's economic stability

one reflection of a nation's financial stability in the world market

favorable balance of payments

unfavorable balance of payments

direct investment

gives the investor a controlling interest in a foreign comapny

1.占市场，资本

2.国际产品本土化

merge and acquisition

portfolio/ indirect investment

股票，债券

gain short-to-medium-term portfolio

区别: 是否直接控制经营