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| Version | User | Scope of changes |
|---|---|---|
| May 18 2008, 11:54 PM EDT (current) | welkerjason | 7 words added, 226 words deleted, 1 widget deleted |
| Aug 27 2007, 11:24 PM EDT | welkerjason |
Changes
Key: Additions Deletions
International Linkages
The United States and World TradeVolume and Patternworld trade: vital for countries with restricted resources and domestic markets, which need to import goods to satisfy the citizensGross domestic product (GDP)= the market value of all the domestic goods and servicesDependencewhen one nation relies on another for resources or products that is limited or unattainable in their nation.(eg. U.S. relying on other nations for natural rubber, diamonds, bananas and etc).Trade PatternsTrade deficits: imports>exportsTrade surplus: exports> importsRapid Trade GrowthTransportation technology: advancement of transportation allows distant nations to trade more efficiently, and thus, advance world tradeCommunications technology: connects traders around the world, allowing exporters to access foreign markets and carry out trade deals more efficientlyDecline in tariffstariffs= excise taxes (duties) on imported productsDecline in tariffs increases international tradeParticipants in International TradeUS, Japan and Western EuropeThe top participants in world trade by volume: US, Japan, Western Europe, ChinaMultinational corporations= firms with significant production and distribution activities acorss foreign nationsNew participantsChina, Eastern Europe, Germany, Poland, Hungary, Czech Republic
Specialization and Comparative Advantage
- trade flows: exporting goods and services, and receiving imports from foreignTrade nationsflows
- resource flows: establishing production facilities inResource foreign countriesflows
- informationInformation and technology flows: foreign nations exchange information about products, prices, interest rates, investment opportunitiesflows
- financial flows: moneyFinancial flows between nations in the forms of imports, foreign assets, foreign aid, etc...
The United States and World TradeVolume and Patternworld trade: vital for countries with restricted resources and domestic markets, which need to import goods to satisfy the citizensGross domestic product (GDP)= the market value of all the domestic goods and servicesDependencewhen one nation relies on another for resources or products that is limited or unattainable in their nation.(eg. U.S. relying on other nations for natural rubber, diamonds, bananas and etc).Trade PatternsTrade deficits: imports>exportsTrade surplus: exports> importsRapid Trade GrowthTransportation technology: advancement of transportation allows distant nations to trade more efficiently, and thus, advance world tradeCommunications technology: connects traders around the world, allowing exporters to access foreign markets and carry out trade deals more efficientlyDecline in tariffstariffs= excise taxes (duties) on imported productsDecline in tariffs increases international tradeParticipants in International TradeUS, Japan and Western EuropeThe top participants in world trade by volume: US, Japan, Western Europe, ChinaMultinational corporations= firms with significant production and distribution activities acorss foreign nationsNew participantsChina, Eastern Europe, Germany, Poland, Hungary, Czech Republic
Specialization and Comparative Advantage
- Specialization allows for overall increase in output and income
- Production Possibilities Analysis
- Assumptions and Comparative Costs
- Terms of Trade: a mutually beneficial agreement in which each benefits better than they would if they were to continue domestic production by itself
