《International Trade11》.ppt

International Trade Cheng Ming 程铭 School of Economics, Shanghai University chengming@ Introduction Importance of foreign trade -- one of the backbones of the growth of the economy -- ties or linkages with the world -- important political means Overview of Chinese foreign trade Important Terms International Trade vs. Foreign Trade tangible goods trade vs. Intangible goods trade -- SITC (Standard International Trade Classification) -- HS (Harmonized System) A. 跨境交付 (cross border supply) B.境外消费 (consumption abroad) C.商业存在 (commercial presence) D.自然人流动 (presence of natural person) Important Terms International trade value vs. international trade quatumn international trade quatumn = International trade value / import and export price index international trade value = Sum of export value of the world (FOB) China’s foreign trade value = Export (FOB)+ Import (CIF) Important Terms general trade vs. special trade composition of foreign trade direction of international trade international trade by region Important Terms terms of trade The ratio of export price index/import price index Improvement and worsening of the terms of trade do not mix up with the concept of trade terms Classification of terms of trade a. Net (commodity) terms of trade N = Px/Pm χ 100 b. Income terms of trade I = Px/Pm χ Qx c. Single factor terms of trade Ｓ＝Ｐx/Ｐm χ Ｚx d. Double factor terms of trade D = Px/Pm χ Zx/Zm χ 100 China’s Foreign Trade Volume billion US Foreign Trade in China（$US billion） Foreign Trade in China（$US billion） Trade Specialization Coefficient ($US1, %) Degree of Dependence on Foreign Trade Chapter One Absolute Advantages Free trade theory Put forward by Adam Smith When the protectionism was popular at that time -- Mercantilism Mercantilism It is the first international trade theory, emerged in the mid-16th century in England