HND Economics 2 The World Economy世界经济学.docVIP

World Economy PAGE PAGE 18 Economics 2: The World Economy Rework Content Introduction3 Section 1: International Trade Three gains from trading internationally3 Free Trade3 Absolute and Comparative Advantage3 Protectionism4 Barriers to trade4 WTO and EU5 Section 2: International Finance Balance of Payments and General trends in UK Trade6 Relationship between the exchange rate and the balance of payments—14 Single Currency15 Effects on individuals and business of the Euro15 Section 3: Less Developed Countries (LDCs) Characteristics of a LDC16 Current issues that face LDCs16 The impacts of multinationals on LDCs and NICs16 Conclusion16 References17 Introduction: As a member of the government of nation on the periphery of Europe, it is my obligation to illustrate the benefits of joining the EU to the Premier. In this report, I will analyze 15elements in next three parts to make a clear explanation of benefits of joining the EU. Section 1: International Trade Three gains from trading internationally: To begin with, the international trade could increase world out-put. The tendency of globalization brings the firms more opportunities to gain the labor, resources, contracts and new technology. The supply and demand will be improved with the improvement of company’s productivity. Once the supply has been improved, the goods and services were produced at lower cost and there are more and more competitions, the price of the product might fall which means consumers could get more choices and cheaper goods. In addition, the most important gaining of international trade is it can generate economic growth. Free trade could increase sales, profit margins, and market shares and the both demand and supply level has updated. Meanwhile, the producer needs more resources, labor and capital to produce more to satisfy the global market. It direct result in improving the material market, finance market, and may decline the unemployment ra