¡Descarga Antecedentes del comercio desde conceptos básicos y la globalización y más Resúmenes en PDF de Economía laboral solo en Docsity!
CONCEPTS:
(^) INTERNATIONAL ECONOMICS : Is the branch of economics that analyzes commercial transactions between two or more countries, these can refer to exchanges of goods or services or financial operation. (^) INTERNATIONAL TRADE: It is the part of economy that studies the exchange of goods and service on a global scale. (^) FOREING TRADE: Transaction of exports and imports of goods and service from one country to other countries.
1.1 International Economy &
Globalization
- In today’s world, no nation exists in economic isolation. All aspects of
a nation’s economy— its industries, service sectors, levels of income
and employment, and living standard—are linked to the economies of
its trading partners. This linkage takes the form of international
movements of goods and services, labor, business enterprise,
investment funds, and technology. Indeed, national economic
policies cannot be formulated without evaluating their
probable impacts on the economies of other countries.
Waves of Globalization
- First Wave of Globalization: 1870–
- Decreases in tariff barriers and new technologies
- (^) World War I also, during the Great Depression of the 1930s, governments responded by practicing protectionism
- Second Wave of Globalization: 1945–
- The horrors of the retreat into nationalism provided renewed incentive for internationalism following World War II.
- New kind of trade: rich country specialization in manufacturing niches that gained productivity through agglomeration economies.
Agglomeration economies
- Increasingly, firms clustered together, some clusters produced the same
product, and others were connected by vertical linkages. Japanese auto
companies, for example, became famous for insisting that their parts
manufacturers locate within a short distance of the main assembly plant.
For companies such as Toyota and Honda, this decision decreased the
costs of transport, coordination, monitoring, and contracting. Although
agglomeration economies benefit those in the clusters, they are bad news
for those who are left out. A region can be uncompetitive simply because
not enough firms have chosen to locate there. Thus, a divided world can
emerge, in which a network of manufacturing firms is clustered in some
high-wage region, while wages in the remaining regions stay low
- 2001- Appeared.- When Goldman Sachs investment bank economist Jim O'Neil used it to group the major emerging markets: Brazil, Russia, India and China.
- would dominate the economy by 2050 due to their large population, territorial extension, natural resources, very high GDP growth... An appealing combo for foreign direct investment.
- 2006-When they began their dialogue
- 2009 -They have functioned as a bloc, with annual meetings of Heads of State and Government.
- 2011-The BRIC was joined by the "S" of South Africa, and completed to five the group of countries that, although they are very different, by dint of pragmatism, have remained united
- The figures they reach as a bloc speak for themselves: together they represent around 42% of the world's population, are 23% of global GDP, have 30% of the planet's territory and handle 18% of total international trade.
PARTICULARS AMOUNT (IN TRILLIONS) Private Consuption (C) $ 6. Gross Investment (I) $ 11. Government Investment (G) $ 5. Exports (X) $ 6. Imports (M) $ 2. Nominal GDP is calculated using the formula given below nominal GDP= C+I+G(X-M) NOMINAL GDP FORMULA $ 26. GROSS DOMESTIC PRODUCT
- Table 1.2. Analysts estimate that foreign outsourcing can allow
companies to reduce costs of a given service from 30 to 50 percent
The United States as an Open TRADE PATTERNS^ Economy Almost any supermarket doubles as an international food bazaar.
- (^) Due to the rise in the world trade resulting from
- (^) Tecnological improvments in transportation (steamships)
- (^) Communications (transatlantic, thelegraph cable) 1890- 1950
- (^) For thise period two events interrumpted the International Trade
- (^) First World War, and The Great Depression at 1930s, Caused the U.S.A. to reduce its dependence on trade, partly for national security & partly to protect its home industries
- (^) introduced a new kind of trade: rich country specialization in manufacturing niches that gained productivity through agglomeration economies. 1945
- (^) When the finished the second World War
- (^) U.S.A. and another countries negotieted reductions in the trade barriers
- (^) Which contributed to rising world trde
- (^) Technologycal improvments in shiping & communications also bolstered trade & the incrasing openness of the U.S.A. econom SIGNIFACATED TREND
- The relative importance of international trade for the United States has increased by about 50 percent during the past century.
- The significance of international trade for the U.S. economy is even more noticeable when specific products are considered. For example, we would have fewer personal computers without imported components, no aluminum if we did not import bauxite, no tin cans without imported tin, and no chrome bumpers if we did not import chromium
MEASURES OF OPENNESS FOR SELECTED NATIONS
In that year, the United States exported 11 percent of its GDP while imports were 16 percent of GDP; the openness of the U.S. economy to trade thus equaled 27 percent. In the following table you can see how the opening of the economy to trade in some countries is better than that of the US. I have a question for you, why do you think this is happening? Simply put, large countries tend to be less reliant on international trade because many of their companies can attain an optimal production size without having to export to foreign nations. Therefore, small countries tend to have higher measures of openness than do large ones.
Why Is Globalization Important?
- Because of trade, individuals, firms, regions, and nations can specialize in the production of things they do well and use the earnings from these activities to purchas from others those items for which they are high-cost producers. Therefore, trading partners can produce a larger joint output and achieve a higher standard of living than would otherwise be possible. Economists refer to this as the law of comparative advantage.
- According to the law of comparative advantage, the citizens of each nation can gain by spending more of their time and resources doing those things in which they have a relative advantage. If a good or service can be obtained more economically through trade, it makes sense to trade for it instead of producing it domestically. It is a mistake to focus on whether a good is going to be produced domestically or abroad. The central issue is how the available resources can be used to obtain each good at the lowest possible cost. When trading partners use more of their time and resources producing things they do best, they are able to produce a larger joint output, which provides the source for mutual gain.
- International trade also results in gains from the competitive process. Competition is essential to both innovation and efficient production. International competition helps keep domestic producers on their toes and provides them with a strong incentive to improve the quality of their products. Also, international trade usually weakens monopolies. As countries open their markets, their monopoly producers face competition from foreign firms.
CLASS TOPIC FOR READ, since page 18 to 25
- Common Fallacies of International Trade
- Does Free Trade Apply to Cigarettes?
- Is International Trade an Opportunity or a Threat to Workers?
- Backlash Against Globalization
- Terrorism Jolts the Global Economy
