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¥Ø¿ý Chapter 1 An Introduction to the World Economy and Trade (1) 1. 1 The Development Situation (1) 1. 1. 1 World Trade Volumes and World Trade Composition (1) 1. 1. 1. 1 World Trade Volumes (1) 1. 1. 1. 2 The World Trade Composition (2) 1. 1. 2 Main Trade Participants (4) 1. 1. 2. 1 Total Goods and Services Imports and Exports (4) 1. 1. 2. 2 Goods and Services Imports and Goods and Services Exports (5) 1. 1. 3 Trade Situation in China and the U. S. (7) 1. 1. 3. 1 Foreign Trade in China (8) 1. 1. 3. 2 Foreign Trade in the U. S. (11) 1. 2 Features of World Economy and Trade (15) 1. 2. 1 The Growth of World Economy and Trade Have Been Slowing Down (15) 1. 2. 2 Trade Participants Differentiated Significantly (16) 1. 2. 3 More High-Tech Products and Information Products Are Traded (18) 1. 2. 4 The Global Value Chain Is Under Reconstruction, the Cross-Border E-Commerce Is Growing Rapidly (19) 1. 2. 5 The Trade Protectionism Has Been Rising (20) 1. 2. 6 Developing and Middle-Income Countries Have Been Increasingly Active (20) Part ¢¹ International Trade Theory Chapter 2 Mercantilismꎬ the Theory of Absolute Advantage, and the Theo-ry of Comparative Advantage (25) 2. 1 Mercantilism (25) 2. 1. 1 Main Thoughts of Mercantilism (25) 2. 1. 2 Main Policies of Mercantilism (25) 2. 1. 3 Limitations of Mercantilism (26) Reading 2. 1 (26) 2. 2 The Theory of Absolute Advantage (27) 2. 2. 1 Basic Assumptions (28) 2. 2. 2 Absolute Advantage (28) 2. 2. 3 The Theory of Absolute Advantage (29) 2. 2. 4 Limitations of the Theory of Absolute Advantage (30) Reading 2. 2 (31) 2. 3 The Theory of Comparative Advantage (32) 2. 3. 1 Basic Assumptions (32) 2. 3. 2 Opportunity Cost (32) 2. 3. 3 Comparative Advantage (32) 2. 3. 4 Theory of Comparative Advantage (34) 2. 3. 5 Limitations of the Theory of Comparative Advantage (35) Reading 2. 3 (35) 2. 4 Determining the Relative Price with Free Trade (36) Reading 2. 4 (40) Chapter 3 The Standard Trade Model (41) 3. 1 Production Possibility Frontier (PPF) (41) 3. 1. 1 The Shape of PPF (41) 3. 1. 2 Inefficient, Maximum and Impossible Combinations (43) 3. 1. 3 The Shift of PPF (44) 3. 1. 4 The Marginal Rate of Transformation (MRT) (46) Supplementary Content 3. 1: A Derivation of PPF (Constant Costs) (47) Reading 3. 1 (50) 3. 2 Community Indifference Curves (CIC) (51) 3. 2. 1 Definition (51) 3. 2. 2 Characteristics of Community Indifference Curves (52) 3. 2. 3 The Marginal Rate of Substitution (MRS) (54) 3. 3 Equilibrium in Isolation (54) 3. 4 Production, Consumption, and the Relative Price (56) 3. 4. 1 Production and the Relative Price (56) 3. 4. 2 Consumption and the Relative Price (57) 3. 5 The Trade Pattern and Trade Gain (58) 3. 5. 1 Constant Costs (59) 3. 5. 2 Increasing Costs (60) 3. 6 Equilibrium with Trade (62) 3. 7 Incomplete Specialization (63) 3. 8 Consumer Preferences and International Trade (64) Reading 3. 2 (66) Chapter 4 Export Supply Curves, Import Demand Curves, Offer Curves, and the Terms of Trade (67) 4. 1 Export Supply Curves (67) 4. 2 Import Demand Curves (68) 4. 3 The Partial Equilibrium with Trade (70) 4. 4 Offer Curves and the General Equilibrium Analysis (71) Reading 4. 1 (74) Reading 4. 2 (75) 4. 5 Partial Equilibrium and General Equilibrium Analyses (76) 4. 6 The Terms of Trade (78) Reading 4. 3 (79) Chapter 5 Factor Endowments and the Heckscher-Ohlin Theory (80) 5. 1 Assumptions of the H-O Model (80) 5. 2 Isoquants (81) 5. 2. 1 Definition and Derivation (81) 5. 2. 2 Characteristics of Isoquants (81) 5. 2. 3 The Marginal Rate of Technical Substitution (MRTS) (83) Supplementary Content 5. 1: Two Special Cases of Isoquant Curves (84) 5. 2. 4 The Relationship Between the Factor Input Ratioꎬ Factor Pricesꎬ and Production Costs (85) 5. 3 Factor Intensity (86) 5. 4 Factor Abundance (87) 5. 5 Factor Intensityꎬ Factor Abundanceꎬ and the Shape of PPF (88) 5. 5. 1 The Shape of PPFs in Home and Foreign (88) 5. 5. 2 The Relative Location of PPFs in Home and Foreign (89) 5. 6 The H-O Model and the H-O Theorem (90) 5. 6. 1 The Main Content of H-O Theorem (91) 5. 6. 2 A Graphical Illustration of the H-O Theorem (91) Reading 5. 1 (93) 5. 7 The H-O-S Theorem (93) Supplementary Content 5. 2: International Factor Mobility (95) 5. 8 The Effect of Trade on Income distribution (97) Reading 5. 2 (98) Reading 5. 3 (98) 5. 9 The Leontief Paradox and Its Explanations (99) 5. 9. 1 The Leontief Paradox (99) 5. 9. 2 Explanations of the Leontief Paradox (100) 5. 9. 2. 1 An Explanation from the Perspective of Theoretical Base (100) 5. 9. 2. 2 An Explanation from the Perspective of Human Capital (100) 5. 9. 2. 3 An Explanation from the Perspective of R&D (100) 5. 9. 2. 4 An Explanation from the Perspective of Factor Intensity Reversal (101) 5. 9. 2. 5 An Explanation from the Perspective of Tariff Policies (101) 5. 9. 2. 6 An Explanation from the Dynamic Perspective (101) Chapter 6 Economies of Scaleꎬ Imperfect Competitionꎬ and International Trade (103) 6. 1 Economies of Scale and International Trade (103) 6. 1. 1 Returns to Scale and Economies of Scale (103) 6. 1. 2 Economies of Scale and Production Possibilities Frontier (104) 6. 1. 3 Economies of Scale and External Economies (104) Reading 6. 1 (105) 6. 1. 4 Economies of Scaleꎬ the International Trade Patternꎬ and Gains from Trade (106) Supplementary Content 6. 1: Cases of External and Internal Economies of Scale (107) 6. 2 Imperfect Competition and International Trade (108) 6. 2. 1 Imperfect Competition (108) Reading 6. 2 (108) 6. 2. 2 The Intra-Industry Trade Index (IIT) (109) Reading 6. 3 (110) 6. 3 Dynamic Technological Differences and International Trade (111) 6. 3. 1 The Technological Gap Model (112) Reading 6. 4 (112) 6. 3. 2 The Product Life-Cycle Model (114) 6. 4 The New Economic Geography Theory and International Trade (115) Reading 6. 5 (116) 6. 5 Environment Standards and International Trade (117) Reading 6. 6 (118) Chapter 7 The New-New Trade Theory (121) 7. 1 The New-New Trade Theory and Its Development (121) 7. 1. 1 The Trade Model with Heterogeneous Firms (121) 7. 1. 2 The Endogenous Boundary Model of Firms (122) 7. 2 What`s New in the New-New Trade Theory? A Comparison of the Traditional Trade Theory, the New Trade Theory, and the New-New Trade Theory (123) 7. 2. 1 Research Subjects Are Different (123) 7. 2. 2 Theoretical Assumptions Are Different (124) 7. 2. 3 Theoretical Cores Are Different (125) 7. 2. 4 Sources of Trade Benefits and Trade Policies Are Different (125) 7. 3 The Value of the New-New Trade Theory (126) 7. 4 Limits of the New-New Trade Theory (126) 7. 5 Policy Implications of the New-New Trade Theory (127) Reading 7. 1 (128) Chapter 8 Economic Growth and International Trade (129) 8. 1 Growth of Factors of Production and Economic Growth (129) 8. 1. 1 Capital and Labor Grow Simultaneously and K/ L Is Unchanged (130) 8. 1. 2 Capital Grows and Labor Is Unchanged (131) 8. 1. 3 Labor Grows and Capital Is Unchanged (132) 8. 1. 4 Capital and Labor Grow Simultaneously and K/ L Rises (134) 8. 1. 5 Capital and Labor Grow Simultaneously and K/ L Drops (136) Reading 8. 1 (138) 8. 2 Technical Progress and Economic Growth (139) 8. 3 Economic Growth and International Trade (143) 8. 3. 1 Economic Growthꎬ Consumption Changesꎬ and Trade Scale (143) 8. 3. 2 Economic Growth and International Trade (The Small-Country Case) (146) 8. 3. 3 Economic Growth and International Trade (The Large-Country Case) (148) 8. 3. 4 Immiserizing Growth (151) Reading 8. 2 (152) Part ¢º International Trade Policy Chapter 9 Tariffs (155) 9. 1 Definition and Classification of Tariffs (155) 9. 1. 1 Tariffs Classified by Commodity Flows (155) 9. 1. 1. 1 Import Duty (155) 9. 1. 1. 2 Export Duty (156) 9. 1. 1. 3 Transit Duty (156) 9. 1. 2 Tariffs Classified by Collection Methods (156) 9. 1. 2. 1 Ad Valorem Tariff (156) 9. 1. 2. 2 Specific Tariff (156) 9. 1. 2. 3 Compound Tariff (156) 9. 1. 2. 4 Alternative Tariff (157) 9. 1. 2. 5 Sliding Tariff (157) 9. 1. 3 Tariffs Classified by Purposes (157) 9. 1. 3. 1 Revenue Tariff (157) 9. 1. 3. 2 Protective Tariff (157) 9. 1. 4 Tariffs Classified by Differential Treatments (157) 9. 1. 4. 1 Import Surtax (157) 9. 1. 4. 2 Variable Levy (158) 9. 1. 4. 3 Preferential Duty (158) 9. 1. 4. 4 Generalized Preferential Duty (158) 9. 2 Effects of Import Duties (A Small-Country Case) (158) 9. 3 Effects of Import Duties (A Large-Country Case) (163) 9. 4 Effects of Import Duties on the Export Country (166) 9. 4. 1 A Small-Country Case (166) 9. 4. 2 A Large-Country Case (166) 9. 5 Nominal and Effective Rates of Protection (167) 9. 5. 1 Nominal Rate of Protection (168) 9. 5. 2 Effective Rate of Protection (168) Reading 9. 1 (169) Chapter 10 Export Subsidies (172) 10. 1 The Definition of Export Subsidy (172) 10. 2 Effects of Export Subsidies (A Small-Country Case) (172) 10. 3 Effects of Export Subsidies (A Large-Country Case) (174) 10. 4 Effects of Export Subsidies on the Import Country (176) 10. 4. 1 A Small-Country Case (176) 10. 4. 2 A Large-Country Case (176) Reading 10. 1 (177) Chapter 11 Non-Tariff Trade Barriers (180) 11. 1 Green Barriers, Technical Barriers, and Antidumping Barriers (180) 11. 1. 1 Green Barriers (180) Reading 11. 1 (180) Reading 11. 2 (182) 11. 1. 2 Technical Barriers (182) Reading 11. 3 (183) 11. 1. 3 Antidumping Barriers (184) Reading 11. 4 (185) 11. 2 Other Forms of Non-Tariff Trade Barriers (185) 11. 2. 1 Licenses and Quotas (185) 11. 2. 2 Customs & Administrative Entry Procedures (186) 11. 2. 3 Import Prohibition (189) Reading 11. 5 (189) 11. 2. 4 Discrimination Against Imported Products (189) Reading 11. 6 (190) 11. 2. 5 Export Restrictions (190) 11. 3 Characteristics of Non-Tariff Trade Barriers (191) 11. 4 Effects of Non-Tariff Trade Barriers on Developing Countries and Developing Countries Countermeasures (192) 11. 4. 1 Effects of Non-Tariff Trade Barriers on Developing Countries (192) 11. 4. 2 Developing Countries Countermeasures (193) 11. 4. 2. 1 Innovate Technologies and Improve the Quality of Goods and Services (193) 11. 4. 2. 2 To Be Consistent with International Standards and Cooperate Actively with the Rest of World (193) 11. 4. 2. 3 Fully Understand the Importing Markets and Local Policies (193) 11. 4. 2. 4 Expand Domestic Demand and Reduce the Dependence on the International Trade (194) 11. 4. 2. 5 Protect National Legitimate Rights and Interests (194) Chapter 12 Global and Regional Economic Integration (195) 12. 1 Global and Regional Economic Integration Organizations (195) 12. 1. 1 World Trade Organization (WTO) (195) 12. 1. 2 European Union (EU) (196) 12. 1. 3 North American Free Trade Agreement (NAFTA) (197) Reading 12. 1 (197) 12. 1. 4 Asia-Pacific Economic Cooperation (APEC) (198) 12. 1. 5 Association of Southeast Asian Nations (ASEAN) (199) 12. 1. 6 Organisation for Economic Co-operation and Development (OECD) (200) 12. 1. 7 BRICS (200) 12. 1. 8 The Belt and Road (B&R) (201) Reading 12. 2 (202) 12. 2 The Trend of Global and Regional Economic Integration (203) 12. 2. 1 Regional Economic Integration Tends to Accelerate (203) 12. 2. 2 The Cross-Regional Cooperation Develops Fast (203) 12. 2. 3 FTAs Become the Main Form of Regional Economic Integration (204) 12. 2. 4 The Deep Cooperation Becomes the Mainstream (204) 12. 2. 5 Developed Economies Play the Leading Role in Regional Economic Integration (204) 12. 2. 6 Developing Countries Accelerate the Regional Economic Integration Process (205) 12. 2. 7 The Asia-Pacific Region Has Become the Focus of Free Trade Area Construction (205) Reading 12. 3 (206) 12. 3 Influences of Regional Economic Integration (207) 12. 3. 1 On Trade Liberalization (207) 12. 3. 2 On Global Capital Flows and Industrial Structure Optimization (207) 12. 3. 3 On Global Economic and Trade Orders and Operation Rules (208) 12. 3. 4 On the Global Trade Pattern (208) 12. 4 Countermeasures by Developing Countries to Deal With Global and Regional Economic Integration (209) 12. 4. 1 Act Positively (209) 12. 4. 2 Adapt to Global and Regional Economic Integration Rules Quickly (209) 12. 4. 3 Participate in the International Cooperation and International Trade Actively (210) 12. 4. 4 Strengthen the Awareness of Risk Prevention and Safeguard the National Economic and Financial Security (210) 12. 4. 5 Appreciate Talents and Innovation (210)
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