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●Arbitrage:The purchase of a currency in the monetary centerwhere it is cheaper for immediate resale in the monetary center where it is more expensive in order to make a profit.( buying at a low price and selling at a high price for a profit.)●Monetary approach: Economists believe that the money supplydetermines the price level in the long run .●Hyperinflation :occurs when a country experiences veryhigh and usually accelerating rates of price inflation, rapidly depreciating the real value of the local currency, and causing the population to minimize their holdings of the local money.●contractionary monetary policy :is one that reducesthe surplus of available assets. This is brought into action and controlled by a central bank or fiscal body appointed by thegovernment. Its primary purpose is to control inflation.●Purchasing power parity:The notion that the ratio betweendomestic and foreign price levels should equal the equilibrium exchange rate between domestic and foreign currencies.●Devaluation:A deliberate downward adjustment to a country'sofficial exchange rate relative to other currencies.●Appreciation :The increase in value of an asset. Unless you areshort selling, appreciation is always a good thing!●Overshooting:A phenomenon in economics used to explainwhy exchange rates are more volatile than would be expected.●exchange rate: is the rate between two currencies at whichone currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency.●Balance of Payment:is defined as, "Systematic record of all economictransactions between the residents of a foreign country" Thus balance of payments includes all visible and non-visible transactions of a country during a given period, usually a year. It represents a summation of country's current demand and supply of the claims on foreign currencies and of foreign claims on its currency.[●Speculation:is the practice of engaging in risky financialtransactions in an attempt to profit from short or medium term fluctuations in the market value of a tradable good such as a financial instrument, rather than attempting to profit from the underlying financial attributes embodied in the instrument such as capital gains, interest, or dividends.●Sterilization:a term referring to central bank operationsaimed at neutralizing foreign exchange operations' impact on domestic money supply and to generally offset potentially adverse consequences of large capital flows.● Expansionary monetary policy :is when a central bank uses itstools to stimulate the economy. This usually means lowering the rate to increase the money supply. This action increases liquidity, giving banks more money to lend.●Optimum currency area :is a geographical regionin which it would maximize economic efficiency to have the entire region share a single currency.●floating exchange rate: is a type of exchange-rate regime inwhich a currency's value is allowed to fluctuate according to the foreign-exchange market. A currency that uses a floating exchange rate is known as a floating currency. A floating currency is contrasted with a fixed currency.●marginal propensity to import:refers to the change inimport expenditure that occurs with a change in disposable income (income after taxes and transfers).●Managed floating system : is the current international financialenvironment in which exchange rates fluctuate from day to day, but central banks attempt to influence their countries' exchange rates by buying and selling currencies.●Vehicle currency :is a currency demonstrating the convenience to allparties of picking one or two leading currencies used by smaller countries as focal points for trading .It . in any center of foreign exchange trading,most business is carried on in only a few foreign currency,●The official reserve transactions account:it consists ofcentral transactions in international reserve assets:gold,foreign exchange reserves,credits issued by the international monetary fund,and special drawing rights.central banks hold these reserve assets to back up the liabilities they issue.●Exchange rate overshooting :is defined as the case in which theinitial depreciation rate is larger than the long-run depreciation rate ,that is the case in which the post-crisis exchange rate is lower than the short-run level.。
国际经济学之名词解释Chapter 31.Absolute advantage（绝对优势）:A country has an absolute advantage ina production of a good if it has a lower unit labor requirement(aLW 单位产品劳动投入) than the foreign country in this good.parative Advantage（相对优势）: A country has a comparative advantage in producing a good if the opportunity cost of producing that good in terms of other goods is lower in that country than it is in other countries.3.Opportunity Cost（机会成本）：The opportunity cost of roses in terms of computers is the number of computers that could be produced with the same resources as a given number of roses.4.The unit labor requirement： the number of hours of labor required to produce one unit of output, such as aLW (wine) and aLC (cheese)5.Production Possibilities frontier（生产可能性边界）： The production possibility frontier (PPF) of an economy shows the maximum amount of a good (say wine) that can be produced for any given amount of another (say cheese).Chapter 41.Abundant factor: the resource of which a country has a relatively large supply(labor in home,land in foreign)2.Biased expansion of production possibilities: when the production possibility frontier shifts out much more in one direction than in the other.3.Equalization of factor prices: when Home and Foreign trade, the relatives prices of goods converge. This convergence, in turn, causes convergence of the relative prices of land and labor.4.Heckscher-Ohlin theory: It shows that comparative advantage is influenced by Relative factor abundance (refers to countries) and Relative factor intensity (refers to goods)It is also referred to as the factor-proportions theory.5.Scarce factor: in that country, and the resource of which it has a relatively small supply( land in Home, labor in foreign)Chapter 51.Biased growth: Biased growth takes place when TT (a country’s production possibility frontier) shifts out more in one direction than in the other.2.Isovalue lines(等价线) : It is a line along which the market value of output is constant by an equation of the form: PCQC ＋ PFQF = V. The higher values of output, the farther out an isovalue line lies.3.Indifference curves（无差异曲线）: Each traces（表明） a set of combinations of cloth (C) and food (F) consumption that leave the individual equally well off.4.Terms of trade : The price of the good a country initially exports divided by the price of the good it initially imports.5.Export-biased（出口偏向） growth: home experiences growth biased toward cloth and disproportionately expands a country’s PP in the direction of the good it exports.6.Import-biased growth （进口偏向）: It disproportionately expands a country’s PP in the direction of the good it imports.7.Immiserizing growth （贫困化的经济增长）: A situation where export-biased growth by poor nations can worsen their terms of trade so much that they would be worse off than if they had not grown at all.8. Import tariffs are taxes levied on imports9.External price: goods are traded internationally10.Export subsidy(出口补贴）：payments given to domestic producers who sell a good abroad.Chapter 61.Dumping(倾销): the most common form of price discrimination in international trade.2.External economies of scale(外部规模经济) :the cost per unit depends on the size of the industry but not necessarily on the size of any one firm.3.Infant industry argument: the argument for temporary protection of industries to enable them to gain expensive.4.Internal economies of scale(内部规模经济) the cost per unit depends on the size of an individual firm but not necessarily on that of the industry.5.Interindustry trade: the exchange of manufactures for food.6.Intraindustry trade: the exchange of manufactures for manufactures.7.Knowledge spillovers: Knowledge is one of the important input factors in highly innovative industries.bor market pooling（劳动力共享市场）: A cluster of firms can createa pooled market for workers with highly specialized skills.9.Oligopoly（寡头垄断） : There are several firms, each of which is large enough to affect prices, but none with an uncontested monopoly.10.Price discrimination: The practice of charging different customers different prices.Chapter 71.Direct foreign investment: international capital flows in which a firm in one country creates or expands a subsidiary in another.2.Factor movements: international movements of factors of production.3.Intertemporal production possibility frontier跨时生产可能性: Imagine an economy that consumes only one good and will exist for only two periods, which we will call present and future.Chapter 81.Ad valorem tariff(从价关税): taxes that are levied as a fraction of the value of the imported goods.2.Consumption distortion loss（消费扭曲损失）: a tariff leads consumers to consume too little of the good.3.Export restraint: Limit the quantity of exports.4.Nontariff barriers: modern governments usually prefer to protect domestic industries.5.Production distortion loss（生产扭曲损失）:the tariff leads domestic producers to produce too much of this good.6.Specific tariff:(从量关税):taxes that are levied as a fixed charge for each unit of goods imported.Chapter 91.Optimum tariff （最优关税）：by convention the phrase optimum tariff is usually used to refer to the tariff justified bu a terms of trade argument rather than to the best tariff given all possible considerations.。
自给自足的相对均衡价格（equilibrium-relative modity price in isolation）：在生产和消费那一点上一国生产可能性曲线和社会无差异曲线公切线的斜率。
贸易条件下的相对均衡价格（equilibrium-relative modity price with trade）：两国贸易平衡时贸易双方共同的均衡价格。
不完全分工（inplete specialization）：一国并不是花费所有的资源和技术生产其具有比较优势的产品，而是同时生产一部分不具有比较优势的产品。
提供曲线（offer curve）：反映了一国为了进口的某一需要的商品数量而愿意出口的商品数量。
它具备了需要和供给两方面的因素。
贸易条件（terms of trade）：一国出口商品的价格和进口商品价格的比值。
在两国条件下，一国的贸易条件是另一国贸易条件的倒数。
在不止两种商品的贸易世界中，贸易条件是指一国出口商品价格指数和进口商品价格指数的比值。
要素密集度（factor intensities）：是指生产一个单位某种产品所使用的生产要素的组合比例。
在资本与劳动两种生产要素的情形下，要素的密集度就是指生产一单位该产品所使用的资本-劳动比率。
要素丰裕度（factor abundance）：要素丰裕度是一国的资源拥有状况，即一国的要素禀赋状况。
派生需求（derived demand）：对一种生产要素的需求来自（派生自）对另一种产品的需求，其中该生产要素对这一最终产品会作贡献。
赫克歇尔-俄林定理（Hechscher-Ohlin theorem）：一国应该出口该国相对便宜和丰裕的要素密集型的产品，进口该国相对昂贵和稀缺的要素密集型的产品。
要素比例或要素禀赋理论（factor-proportions or factor-endowment theory）：一国应该出口该国相对便宜和丰裕的要素密集型的产品，进口该国相对昂贵和稀缺的要素密集型的产品。
经济学英语词汇大全了解经济学理论与经济现象的专业术语经济学是一门研究人类在稀缺资源下进行资源配置和决策的社会科学。
在经济学领域，有许多专业术语用于描述不同的理论和经济现象。
以下是一份经济学英语词汇大全，将帮助你更好地了解经济学理论和经济现象。
一、宏观经济学术语1. Gross Domestic Product (GDP): 国内生产总值，用于衡量一个国家或地区在一定时间内生产的全部最终商品和服务的市场价值。
2. Inflation: 通货膨胀，衡量物价持续上涨的速度。
3. Unemployment Rate: 失业率，某国或地区的劳动力中未有工作的比例。
4. Fiscal Policy: 财政政策，指政府通过调整税收和支出来影响经济发展的政策。
5. Monetary Policy: 货币政策，指央行通过调整货币供应量和利率来控制通胀和经济增长的政策。
二、微观经济学术语1. Supply and Demand: 供求关系，描述市场上商品和服务的供给和需求关系，决定价格和数量。
2. Price Elasticity of Demand: 需求的价格弹性，衡量消费者对价格变化的敏感程度。
3. Utility: 效用，消费者对商品或服务的满意程度。
4. Market Failure: 市场失灵，指市场机制无法有效配置资源的情况，需要政府干预。
5. Opportunity Cost: 机会成本，指做出某个选择而放弃的最好的替代选择。
三、国际经济学术语1. Trade Deficit: 贸易逆差，指一个国家或地区的进口超过出口的差额。
2. Exchange Rate: 汇率，用于衡量一种货币与其他货币之间的相对价值。
3. Tariff：关税，进口商品需要缴纳的税费。
4. Comparative Advantage: 比较优势，指某国在生产某种商品或服务上相对于其他国家的优势。
5. Foreign Direct Investment (FDI): 外商直接投资，指投资者将资金投资到其他国家的生产或商业项目中。
国际经济学中英名词解释Absolute advantage: The greater efficiency that one nation may have over another in the production of a commodity. This was the basis for trade for Adam Smith.绝对优势Law of comparative advantage: The less efficient nation should specialize in and export the commodity in which its absolute disadvantage is smaller (this is the commodity of its comparative advantage), and should import the other commodity.比较优势原理Ad valorem tariff: A tariff expressed as a fixed percentage of the value of a traded commodity.从价税Specific tariff:从量税A tariff expressed as a fixed sum per unit of a traded commodity.Capital-intensive commodity: The commodity with the higher capital-labor ratio at all relative factor prices.资本密集型商品Labor-intensive commodity:The commodity with the higher labor-capital ratio (L/K) at all relative factor prices.劳动密集型产品Capital inflow: An increase of foreign assets in the nation or a reduction in the nation’s assets abroad.资本流入Capital outflow: A decrease of foreign assets in the nation or an increases the nation’s assets abroad.资本流出Community indifference curve: The curve that shows the various combinations of two commodities yielding equal satisfaction to the community or nation. Community indifference curves are negatively sloped, convex from the origin, and should not across.社会无差异曲线Consumer surplus: The difference between what consumers are willing to pay for a specific amount of a commodity and what they actually pay for it.消费者剩余Producer surplus: The revenue producers receive over and above the minimum amount required to induce them to supply the good.生产者剩余Current account: The account that includes all sales and purchases of currently produced goods and services, income on foreign investments, and unilateral transfers.经常项目Credit transactions:Transactions that involve the receipt of payments from foreigners. These include the export of goods and services, unilateral transfers from foreigners, and capital inflow.贷方交易Debit transactions: Transactions that involve payments to foreigners. These include the import of goods and services, unilateral transfers to foreigners, and capital outflows.借方交易Deficit in the balance of payments:The excess of debits over credits in the current and capital accounts, or autonomous transactions, equal to the net credit balance in the official reserve account, or accommodating transactions.国际收支逆差Factor abundance: The factor of production available in greater proportion and at a lower relative price in one nation than in another nation.要素丰裕度General equilibrium analysis: The study of the interdependence that exists among all markets in the economy.一般均衡分析General equilibrium model: An economic model that studies the behavior of all producers, and traders simultaneously.一般均衡模型Heckscher-Ohlin(H-O) theory: 赫克歇尔—俄林理论The theory that postulates that(1)a nation exports commodities intensive in its relatively abundant and cheap factor and(2)international trade brings about equalization in returns to homogeneous factors across countries.Infant-industry argument: The argument that temporary trade protection is needed to set up an industry and to protect it during its infancy against competition from more established and efficient foreign firms.幼稚工业保护税Marginal rate of substitution,MRS: The amount of one commodity that a nation could give up in exchange for one extra unit of a second commodity and still remain on the same indifference curve. It is given by the slope of the community indifference curve at the point of consumption and declines as the nation consumes more of the second commodity.边际替代率Marginal rate of transformation,MRT:The amount of one commodity that a nation must give up to produce each additional unit of another commodity. This is another name for the opportunity cost of a commodity and is given by the slope of the production frontier at the point of production.边际转换率Opportunity cost theory: The theory that the cost of a commodity is the amount of a second commodity that must be given up to release just enough resources to produce one more unit of the firstcommodity.机会成本理论Dumping:The export of a commodity at below cost or at a lower price than sold domestically.倾销Persistent dumping:The continuous tendency of a domestic monopolist to maximize total profits by selling the commodity at a lower price abroad than domestically, also called international price discrimination.持久性倾销Predatory dumping: The temporary sale of commodity at a lower price abroad in order to drive foreign producers out of business, after which prices are raised to take advantage of the newly acquired monopoly power abroad.掠夺性倾销Sporadic dumping:偶尔倾销The occasional sale of a commodity at a lower price abroad than domestically in order to sell an unforeseen and temporary surplus of the commodity abroad without having to reduce domestic prices.Product cycle model:The hypothesis, advanced by Vernon, that new products introduced by industrial nations and produced with skilled labor eventually become standardized and can be produced in other nations with less skilled labor.产品周期模型Production possibility frontier:A curve showing the various alternative combinations of two commodities that a nation can produce by fully utilizing all of its resources with the best technology available to it.生产可能性边界Purchasing-power parity(PPP) theory:The theory that postulates that the change in the exchange rate between two currencies is proportional to the change in the ratio in the two countries’ general price levels.购买力平价理论Rate of effective protection:The tariff calculated on the domestic value added in the production of a commodity.有效保护率Relative purchasing-power parity theory:Postulates that the change in the exchange rate over a period of time should be proportional to the relative change in the price levels in the two nations. This version of the PPP theory has some value.相对购买力平价Small-country case:The situation where trade takes place at the pretrade-relative commodity prices in the large nation so that the small nation receives all of the benefits from trade.小国情况Specific tariff:A tariff expressed as a fixed sum per unit of a traded commodity.特别关税Terms of trade:The ratio of the index price of a nation’s export to its import commodities.贸易条件Free-trade area:自由贸易区Remove all tariff and nontariff barriers among members and maintain its own trade restrictions against outsiders.Customs union:关税同盟Removes all barriers on trade among members and harmonizes trade policies toward the rest of the world.The best example is the European Union(EU).Common market:共同市场Removes all barriers on trade among members,harmonizes trade policies toward the rest of the world,and also allows the free movement of labor and capital among member nations.An example is the European Union(EU)since January 1,1993. Economic union:经济同盟A supranational institution harmonize and administer national,social,taxation,and fiscal policies.Dumping:倾销The export of a commodity at below cost or at a lower price than sold domestically.Direct investments:直接投资Real investments in factories,capitalgoods,land,and inventories where both capital and management are involved and the investor retains control over the use of the invested capital.Interdependence: 相互依赖The (economic) relationships among nation.Increasing opportunity costs: 机会成本递增The increasing amounts of one commodity that a nation must give up to release just enough resources to produce each additional unit of another commodity.This is reflected in a production frontier that is concave from the origin.Income terms of trade:收入贸易条件The ratio of the price index of the nation’s exports to the price index of its imports times the index of the nation’s volume of exports.Immiserizing growth:悲惨性增长The situation where a nation’s terms of trade deteriorate so much as a result of growth that the nation is worse off after growth than before,even if growth without trade tends to improve the nation’s welfare.Leontief paradox:里昂惕夫之谜The empirical finding that U.S import substitutes were more K intensive than U.S exports.This is contrary to the H-O trade model,which predicts that,as the most K-abundant nation,the United States should import L-intensive products andexport K-intensive products.Multinational corporations(MNCs):跨国公司Firms that own,control,or manage production and distribution facilities in several countries.Optimum tariff:最有关税The rate of tariff that maximizes the benefit resulting from improvement in the nation's terms of trade against the negative effect resulting from reduction in the volume of trade. Pattern of trade:贸易模式The commodities exported and imported by each nation.Production possibility frontier:生产可能性曲线A curve showing the various alternative combinations of two commodities that a nation can produce by fully utilizing all of its resources with the best technology available to it.Prohibitive tariff:禁止性关税A tariff sufficiently high to stop all international trade so that the nation returns to autarky. Preferential trade arrangements:优惠贸易安排The loosest from of economic integration;provides lower barriers to trade among participating nations than on trade with nonparticipating nations.An example is the British Commonwealth Preference Scheme.Stolper-Samuelson theorem: 施托尔珀－萨缪尔森定理It postulates that free international trade reduces the real income of the nation's relatively scarce factor and increases the real income of the nation's relatively abundant factor.Terms of trade:贸易条件The ratio of the index price of a nation's export to its import commodities.Trade creation:贸易创造Occurs when some domestic production in a member of the customs union is replaced by lower-cost imports from another member nation.This increases welfare.Trade diversion:贸易转移Occurs when lowercost imports from outside the union are replaced by higher-cost imports from another union member.Byitself,this reduces welfare.Transfer pricing:转移价格The overpricing or underpricing of products in the intrafirm trade of multinational corporations in an attempt to shift income and profits from high-to low-tax nations.。
1 Absolute advantage:绝对优势 The greater efficiency that one nation may have over another in the production of a commodity.This was the basis for trade for Adam Smith.2 Ad valorem tariff: 从价税 A tariff expressed as a fixed percentage of the value of a traded commodity.3 Balance of payments: 收支平衡 A summary statement of all the international transactions of the residents of a nation with the rest of the world during a particular period of time,usually a year.4 Balanced growth: 均衡增长 Equal rates of factor growth and technological progress in the production of both commodities.5 Buffer stocks: 缓冲存货The type of international commodity agreement that involves the purchase of the commodity(to be added to the stock)when the commodity price falls below an agreed minimum price,and the sale of the commodity out of the stock when the commodity price rises above the established maximum price.6 Constant opportunity costs:机会成本不变The constant amount of a commodity that must be given up to produce each additional unit of another commodity.7 Community indifference curve:社会无差异曲线The curve that shows the various combinations of two commodity yielding equal satisfaction to the community or munity indifference curves are negatively sloped,convex from the origin,and should not cross.8 Compound tariff:混合关税A combination of an ad valorem and a specific tariff.9 Customs union:关税同盟Removes all barriers on trade among members and harmonizes trade policies toward the rest of the world.The best example is the European Union(EU).10 Common market:共同市场 Removes all barriers on trade amongmembers,harmonizes trade policies toward the rest of the world,and also allows the free movement of labor and capital among member nations.An example is the European Union(EU)since January 1,1993.11 Dumping: 倾销The export of a commodity at below cost or at a lower price than sold domestically.12 Direct investments:直接投资 Real investments in factories,capital goods,land,and inventories where both capital and management are involved and the investor retains control over the use of the invested capital.13 Free trade area:自由贸易区 Removes all barriers on trade among members,but each nation restains its own barriers on trade with nonmembers.The best example are the EFTA,NAFTA,and Mercosur.14 Factor-price equalization(H-O) theorem:要素禀赋（赫克歇尔—俄林）理论The part of the H-O theory that predicts,under highly restrictive assumptions,that international trade will bring about equalization in relative and absolute returns to homogeneous factors across nations.15 Heckscher-Ohlin(H-O) theory:赫克歇尔—俄林理论The theory that postulates that(1)a nation exports commodities intensive in its relatively abundant and cheap factor and(2)international trade brings about equalization in returns to homogeneous factors across countries.16 Interdependence:相互依赖The (economic) relationships among nation.17 Increasing opportunity costs:机会成本递增The increasing amounts of one commodity that a nation must give up to release just enough resources to produce each additional unit of another commodity.This is reflected in a production frontier that is concave from the origin.18 International cartel: 国际卡特尔An organization of suppliers of a commodity located in different nations(or a group of governments) that agrees to restrict output and exports of the commodity with the aim of maximizing or increasing the total profits of the organization.An international cartel that behaves as a monopolist is called a centralized cartel.19 Income terms of trade:收入贸易条件The ratio of the price index of the nation’s exports to the price index of its imports times the index of the nation’s volume of exports.20 Immiserizing growth:悲惨性增长The situation where a nation’s terms of trade deteriorate so much as a result of growth that the nation is worse off after growth than before,even if growth without trade tends to improve the nation’s welfare.21 Leontief paradox:里昂惕夫之谜 The empirical finding that U.S import substitutes were more K intensive than U.S exports.This is contrary tothe H-O trade model,which predicts that,as the most K-abundant nation,the United States should import L-intensive products and export K-intensive products.22 Marginal rate of transformation(MRT):边际转换率The amount of one commodity that a nation must give up to produce each additional unit of another commodity.This is another name for the opportunity cost of a commodity and is given by the slope of the production frontier at the point of production.23 Marginal rate of substitution(MRS):边际替代率The amount of one commodity that a nation could give up in exchange for one extra unit of second commodity and still remain on the same indifference curve.It is given by the slope of the community indifference curve at the point of consumption and declines as the nation consumes more of the second commodity.24 Multinational corporations(MNCs):跨国公司Firms that own,control,or manage production and distribution facilities in several countries.25 Optimum tariff:适稅The rate of tariff that maximizes the benefit resulting from improvement in the nation's terms of trade against the negative effect resulting from reduction in the volume of trade.26 Pattern of trade:贸易格局The commodities exported and imported by each nation.27 Production possibility frontier:生产可能性曲线 A curve showing the various alternative combinations of two commodities that a nation can produce by fully utilizing all of its resources with the best technology available to it.28 Prohibitive tariff:禁止性关税A tariff sufficiently high to stop all international trade so that the nation returns to autarky.29 Persistent dumping:连续性倾销The continuous tendency of a domestic monopolist to maximize total profits by selling the commodity at a lower price abroad than domestically;also called international price discriminztion.30 Predatory dumping:掠夺性倾销The temporary sale of commodity at a lower price abroad in order to drive foreign producers out of business,after which prices are raised to take advantage of the newly acquired monopoly power abroad.31 Preferential trade arrangements:优惠贸易安排The loosest from ofeconomic integration;provides lower barriers to trade among participating nations than on trade with nonparticipating nations.An example is the British Commonwealth Preference Scheme.32 Purchase contracts:.购货契约Long-term multilateral agreements that stipulate the minimum price at which importing nations agree to purchase a specified quantity of the commodity and a maximum price at which exporting nations agree to sell specified amounts of the commodity.33 Portfolio investments:投资组合The purchase of purely financial assets,such as bonds and stocks(if the stock purchase represents less than 10 percent of the stock of a corporation),usu34 Stolper-Samuelson theorem:施托尔珀－萨缪尔森定理It postulates that free international trade reduces the real income of the nation's relatively scarce factor and increases the real income of the nation's relatively abundant factor.35 Specific tariff: 从量税 A tariff expressed as a fixed sum per unit of a traded commodity.36 Sporadic dumping:偶尔倾销The occasional sale of a commodity at a lower price abroad than domestically in order to sell an unforeseen and temporary surplus of the commodity abroad without having to reduce domestic prices.37 Terms of trade:贸易条件The ratio of the index price of a nation's export to its import commodities.38 Trade creation:贸易创造 Occurs when some domestic production in a member of the customs union is replaced by lower-cost imports from another member nation.This increases welfare.39 Trade diversion:贸易转移 Occurs when lowercost imports from outside the union are replaced by higher-cost imports from another union member.By itself,this reduces welfare.40 Transfer pricing:转移价格The overpricing or underpricing of products in the intrafirm trade of multinational corporations in an attempt to shift income and profits from high-to low-tax nations.。
1.绝对优势（Absolute advantage）如果一个国家用一单位资源生产的某种产品比另一个国家多，那么，这个国家在这种产品的生产上与另一国相比就具有绝对优势。
2.比较优势（Comparative advantage）如果一个国家在本国生产一种产品的机会成本（用其他产品来衡量）低于在其他国家生产该产品的机会成本的话，则这个国家在生产该种产品上就拥有比较优势。
3.贸易所得（gains from trade）贸易所得是指一个国家从国际贸易活动中获得的利益。
一个国家通过参与国际分工与自由贸易，能够获得诸多利益。
4.机会成本（opportunity cost）机会成本是指引一种选择而放弃的最优替换物或是去最好机会的价值5.充裕要素（abundant factor）充裕要素是指一个国家供给相对多的生产要素6.要素价格（factor prices）是指每一单位的生产要素在一定时期内给所有者带来的收入。
（生产要素主要有四种：劳动力、土地、资本和企业家才能）7.生产可能性边界的偏向性扩张（biased expansion of production possibilities）是指生产可能性边界在一个方向上扩张的幅度大于在另一个方向上扩张的幅度8.要素价格均等化（equalization of factor prices）是指各国的生产要素价格将因国际贸易而趋于相等。
9.特定要素（specific factor）是指只能用于特定部门的生产而不能再不同生产部门之间自由流动的生产要素10.偏向型增长（biased growth）是指生产可能性边界在一个方向上扩张的幅度大于在另一个方向上扩张的幅度的一种经济增长方式。
11.边际支出倾向（marginal propensity to spend）是指增加的消费在增加的收入中所占的比例。
12.福利恶化型增长（immiserizing growth）是指一国整体福利水平恶化的经济增长方式，是发展中国家的出口偏向型增长在严格假定下可能出现的一种极端情形。
1、Absolute trade theory(main idea)绝对贸易理论:the greater efficiency that one nation may have over another in the production of a commodity. conclusion: Both countries have absolute advantage in one commodity commodity’’s production because the natural or acquired advantage. If each nation specializes in the production of the commodity of its absolute advantage and exchanges part of its output for the commodity of its absolute disadvantage, both nations benefit from the trade.2、▲Absorption approach ：一、一、Overview of The Absorption Approach: Overview of The Absorption Approach:1)1) The absorption approach was put forward by Alexander in 1952. 2)2) This approach emphasizes changes in real domestic income and absorption as adeterminant of a nation determinant of a nation’’s balance of payments.3)3) The balance of trade is viewed as the difference between what the economyproduces and what it absorbs for domestic use.二、二、Absorption : Absorption :1） A nation nation’’sabsorption falls into three categories, consumption (c), investment (i), government purchase (g).2） The domestic absorption (a)a a 符号：符号：“比等号再多一道”“比等号再多一道” c + i + g c + i + g1、▲Balance of payments equilibrium and adjustment ：Balance of payments equilibrium is a state that the debits equals to the credits in the autonomous transactions. This would simply mean that their stocks of international reserves are unchanging. 2、▲Balance of payments equilibrium and disequilibrium ： （一）（一）Balance of payments equilibrium: is a state that the debits equals to the Balance of payments equilibrium: is a state that the debits equals to the credits in the autonomous transactions. This would simply mean that their stocks of international reserves are unchanging.（二）（二）Disequilibrium Disequilibrium in balance of payments payments：：1)Deficit in the balance of payments: the excess of debits over credits in the autonomous transactions. Deficit countries will experience reserve asset losses. 2) Surplus in the balance of payments: the excess of credits over debits in the autonomous transactions. surplus countries will experience reserve asset accumulation.3、▲Basic theories of the balance of payments:1) The Elasticity Approach to Balance-of-Payments2) The absorption approach to the balance of payments3) The monetary approach to the balance of payments1、Comparative trade theory 比较贸易理论:(main (main points)A points)A points)A country has a comparative country has a comparative advantage in producing a goods if the opportunity cost of producing that goods in terms of other goods is lower in that country than it is in other countries. basic ideas: Even if a nation has an absolute disadvantage in the production of both goods, a basis for mutually beneficial trade may still exist.In this case, countries should specialize where they have their greatest absolute advantage (if they have absolute advantage in both goods) or in their least absolute disadvantage (if they have absolute advantage in neither goods). (两利相权取其重，两害相权取其轻）两害相权取其轻）2、Competitive advantage of nations ：美国美国 20C80 20C80 20C80、、90年代迈克尔年代迈克尔--波特认为：具有比较优势的国家未必具有竞争优势。
国际经济学名词解释第三章1、机会成本(opportunity cost):是指企业为从事某项经营活动而放弃另一项经营活动的机会，或利用一定资源获得某种收入时所放弃的另一种收入。
2、比较优势(comparative advantage):如果一个国家在本国生产一种产品的机会成本低于在其他国家生产该种产品的机会成本，则这个国家在生产该种产品上就具有比较优势。
3、李嘉图模型(Ricardian model):是指以各国之间相对劳动生产率的不同来解释国际贸易现象的贸易理论模型。
4、单位产品劳动投入(unit labor requirement): 是指生产一单位产品所需要投入的劳动小时数。
5、生产可能性边界(production possibility frontier):是指在技术不变和资源充分利用的情况下，社会或单个厂商把全部资源充分地和有效率地用于生产商品所能获得的最大产量的各种组合的曲线。
6、绝对优势(absolute advantage):当一个国家能够以少于其他国家的劳动投入生产出同样单位的商品时，就说该国在生产这种商品上具有绝对优势。
7、局部均衡分析(partial equilibrium analysis): 是指假定其他条件不变时，单独分析某一经济当事人或某一市场的价格和供求变化的经济分析方法和理论。
8、一般均衡分析(general equilibrium analysis)是指在一种价格体系下，整个经济中所有相关市场上的供给和需求同时达到均衡的状态。
9、相对需求曲线(relative dema nd curve):是表示某种产品的相对价格与市场相对需求量之间的相互关系的曲线。
10、相对供给曲线(relative supply curve):是表示某种产品的相对价格与市场相对供给量之间的相互关系的曲线。
11、贸易所得(gains from trade):是指一个国家从国际贸易活动中获得的利益。
1 The opportunity cost of producing something measures the cost of not being able to produce something else because resources have already been used.2 A country with a comparative advantage in producing a good uses its resources most efficiently when it produces that good compared to producing other goods.3 Labor productivity: the number of units of output that a worker can produce in one hour.4 The production possibility frontier (PPF) of an economy shows the maximum amount of a goods that can be produced for a fixed amount of resources.5 Relative wages are the wages of the domestic country relative to the wages in the foreign country.6 Define an isovalue line as a line representing a constant value of production,7 Stolper-Samuelson theorem: if the relative price of a good increases, then the real wage or real lending/ renting rate of the factor used intensively in the production of that good increases, while the real wage or real lending/renting rate of the other factor decreases.8 the Rybczynski theorem：If we hold output prices constant as the amount of a factor of production increases, then the supply of the good that uses this factor intensively increases and the supply of the other good decreases.9 Leontief found that U.S. exports were less capital-intensive than U.S. imports, even though the U.S. is the most capital-abundant country in the world: Leontief paradox.10 Consumer preferences are represented by indifference curves: combinations of goods that make consumers equally satisfied (indifferent).11 The change in welfare (income) when the price of one good changes relative to the price of another is called the income effect.12 The substitution of one good for another when the price of the good changes relative to the other is called the substitution effect.13 The terms of trade refers to the price of exports relative to the price of imports Growth is usually biased: it occurs in one sector more than others, causing relative supply to change.14 Export-biased growth is growth tha t expands a country’s production possibilities disproportionally that country’s export sector.15 Import-biased growth is growth that expands a country’s production possibilities disproportionally in that country’s import sector16Immiserizing growth：export-biased growth by poor nations would worsen their terms of trade so much that they would be worse off than if they had not grown at all.16 Import tariffs are taxes levied on imports17 Export subsidies are payments given to domestic producers that export.18 External economies of scale occur when cost per unit of output depends on thesize of the industry19 Internal economies of scale occur when the cost per unit of output depends on the size of a firm.20 A monopoly is an industry with only one firm.21 An oligopoly is an industry with only a few firms.22 Average cost is the cost of production (C) divided by the total quantity ofproduction (Q). AC = C/Q23 Marginal cost is the cost of producing an additional unit of output.24 Monopolistic competition is a model of an imperfectly competitive industrywhich assumes thatA：Each firm can differentiate its product from the product of competitors.B：Each firm ignores the impact that changes in its price will have on the prices that competitors set: even though each firm faces competition it behaves as if it were a monopolist.25 Suppose now that the global cloth industry is described by the monopolisticcompetition model.Because of product differentiation, suppose that each country produces different types of cloth.Because of economies of scale, large markets are desirable: the foreign country exports some cloth and the domestic country exports some cloth.Trade occurs within the cloth industry: intra-industry trade26 According to the Heckscher-Ohlin model or Ricardian model, countries specializein production.Trade occurs only between industries: inter-industry tradeIn a Heckscher-Ohlin model suppose that:The capital abundant domestic economy specializes in the production of capitalintensive cloth, which is imported by the foreign economy.The labor abundant foreign economy specializes in the production of labor intensive food, which is imported by the domestic economy.27 Dumping is the practice of charging a lower price for exported goods than forgoods sold domestically28 Dumping is an example of price discrimination: the practice of charging different customers different prices29 Specialized equipment or services may be needed for the industry, but are only supplied by other firms if the industry is large and concentrated30 Labor pooling: a large and concentrated industry may attract a pool of workers,reducing employee search and hiring costs for each firm.31 Knowledge spillovers: workers from different firms may more easily share ideasthat benefit each firm when a large and concentrated industry exists32 Dynamic increasing returns to scale exist if average costs fall as cumulativeoutput over time rises.33 economic geography refers to the study of international trade, interregional tradeand the organization of economic activity in metropolitan and rural areas34 A specific tariff is levied as a fixed charge for each unit of imported goods35 An ad valorem tariff is levied as a fraction of the value of imported goods36 The effective rate of protection measures how much protection a tariff or othertrade policy provides domestic producers37 Consumer surplus measures the amount that consumers gain from purchases bythe difference in the price that each pays from the maximum price each would be willing to pay38 Producer surplus measures the amount that producers gain from a sale by thedifference in the price each receives from the minimum price each would be willing to sell at39 An export subsidy can also be specific or ad valorem：A specific subsidy is a payment per unit exported. An ad valorem subsidy is a payment as a proportion of the value exported.40 An import quota is a restriction on the quantity of a good that may be imported. 41A voluntary export restraint works like an import quota, except that the quota is imposed by the exporting country rather than the importing country.42 A local content requirement is a regulation that requires a specified fraction of a final good to be produced domestically43Gross national product(GNP) is the value of all final goods and services produced by a nation’s factors of production in a giventime period44 Gross domestic product measures the final value of all goods and services that are produced within a country in a given time period45National income is often defined to be the income earned by a nation’s factors of production.46 Depreciation of physical capital results in a loss of income to capital owners, so the amount of depreciation is subtracted from GNP47 Unilateral transfers to and from other countries can change national income: payments of expatriate workers sent to their home countries, foreign aid and pension payments sent to expatriate retirees48current account: accounts for flows of goods and services (imports and exports). financial account: accounts for flows of financial assets (financial capital). capital account: flows of special categories of assets (capital): typicallynon-market, non-produced, or intangible assets like debtforgiveness, copyrights and trademarks49 Appreciation is an increase in the value of a currency relative to another currency. Depreciation is a decrease in the value of a currency relative to another currency 50 Arbitrage: buying at a low price and selling at a high price for a profit.51Spot rates are exchange rates for currency exchanges “on the spot”, or when trading is executed in the present52Forward rates are exchange rates for currency exchanges that will occur at a future (“forward”) date.53 Money demand represents the amount of monetary assets that people are willing to hold (instead of illiquid assets).54The central bank substantially controls the quantity of money that circulates in an economy, the money supply55Interest rates/expected rates of return on monetary assets relative to the expected rates of returns on non-monetary assets.56 Risk: the risk of holding monetary assets principally comes from unexpectedinflation, which reduces the purchasing power of money.57 Liquidity: A need for greater liquidity occurs when the price of transactionsincreases or the quantity of goods bought in transactions increases.58 Prices: the prices of goods and services bought in transactions will influence the willingness to hold money to conduct those transactions59 Income: greater income implies more goods and services can be bought, so thatmore money is needed to conduct transactions60 (DF –QF) = (PC /PF)(QC –DC)❖This equation is the budget constraint for an economy, and it has a slope of –(PC /PF)(DF –QF)–(PC /PF)(QC –DC) = 0❖Note that the budget constraint touches the PPF: a country can always afford to consume what it produces.❖However, a country need not consumeonly the goods and services that it produceswith trade.Exports and imports can be greater than zero.❖Furthermore, a country can afford to consume more of both goods with trade.。
名词解释英文国际经济学Absolute Advantage：the greater efficiency that one nation may have over another in the production of a commodity.Comparative Advantage:A country has a comparative advantage in producing a goods if the opportunity cost of producing that goods in terms of other goods is lower in that country than it is in other countries.The terms of trade is the relative price at which two countries trade goods. Terms of trade =export price index/ import price indexSmall Country EffectIf a small nation trade with a very large nation according to its comparative advantage, the small nation can achieve complete labor specialization in production, and the large nation can not. The terms of trade must be the relative price of the large nation in autarky. Because the small nat ion is very small, it can’t affect the supply and demand for any product of the large nation. As such, the small nation gets all the gains from trade and the large nation gets no gains from trade.Distribution of the gains from tradeExport-prompting measures Export subsidies(出口补贴）Export credit (出口信贷）Export Credit Guarantee System（出口信贷担保）Foreign exchange dumping (外汇倾销）Free trade areasAssignment mechanisms of import quotaspublic auction-system 公开拍卖constant preference-system 固定的受惠application-procedure system 使用申请程序Export subsidies and its’ economic effect The implication of export subsidesA quota is a direct quantitative restriction on the amount of a commodity allowed to be imported or exported (in the form of voluntary export restraints).As tariffs were negotiated down during the postwar period, then import quotas have been widely used by developed nations to protect their agriculture and by developing nations to stimulate import substitution of manufactured products and for balance-of-payments reasons.Other non-tariff barriers Industrial policy ,Government procurement Dumping and anti-dumping T echnical barriers to tradeLabor and environmental standards,Transportation costs and trade The Theory of Protective Trade 1.Merchantilism 2. The optimum tariff theory3.The infant industry argument4. Keynes’ protective trade theory5. Strategic trade policy6. The political economy of protectionism幼稚产业论 a national economy can be divided into five stages. In an early stage of industrialization required tariff protection to stimulate development.Infant industries are those that are not strong enough to survive open competition and have the growth potential. How toJudge。
/doc/b713809807.html,l’s test (穆勒标准）2.Bastable’s test（巴斯塔布尔标准）3.Kemp’s test (坎普标准）Main ideas of Keynes’ theory:There is deficiency of the domestic effective demand in free trade. So in open economy, the government should encourage export and limit import.While this theory realized that the surplus can’t increase without limitation.Post-Keynes’ multiplier theoryStrategic trade policy is based on the incomplete competitive market, especially in the oligopoly market.The government should protect domestic industries by using the export subsides or import protection to change the market structure and gain the international competition.The political economy of protectionism Given that a country as a whole gains from trade, one would expect fr ee trade to dominate most countries’ international trade policy. While the fact is not so.The interaction between the gains from trade for the country and the gains from trade barriers for producers explains the existence of trade barriers.Protectionism and public choice Economists have developed the theory of public choice to describe political behavior.The premise underlying the theory of public choice is that politicians, like all individuals, attempt to maximize their utility. In most cases, utility maximization for a politician means maximizing the number of votes he or she will receive in the next election.This implies the politicians tend to favor programs having immediate and clear-cut benefits combined with vague, difficult to measure, or deferred costs. Introduction to regional economic arrangements Regional economic integration refers to agreements between countries to reduce tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other.Regional trade agreements are trade agreements between two or more countries that reduce trade barriers only for those countries that are members of the agreementsTrade creation effects: Trade creation occurs when some domestic production in a nation is replaced by lower-cost imports from another member nation after the establishment of a customs union. This is a positive effect and can increase the welfare of member nations as a whole, because it leads to greater specialization in production based on comparative advantage. Trade diversion effect: Trade diversion occurs when lower-cost producers from outside the customs union are replaced by higher-cost producers from a union member after the establishment of a customs union because of the preferential trade treatment given to member nations. This is a negative effect and may reduce the welfare of the customs union as a whole, because it shifts production from more efficient producers outside the customs union to less efficient producers inside the customs union.intra-industry trade:International trade in the products of the same industry is called intra-industry tradeinter-industry trade:International trade in the products of the different industries is called inter-industry trade.Economies of scale A common explanation of international trade in differentiated products is that this trade is a result of economies of scale in the product’s production.Two forms of economies of scaleInternal economies of scale : with the firm’s output expands, the average cost of t he production reduces.External economies of scale: with the entire industry output expands, the average cost of the production reduces.Reasons of internal economies of scaleAt a larger scale of operation, a greater division of labor and specialization becomes possible.A larger scale of operation may permit the introduction of more specialized and productive machinery.Also at a larger scale, the firm can fully utilize the market information, management skills, brand reputation and so on.The impacts on trade patterns based on internal economies of scale1.Trade patterns based on internal economies of scale are uncertain.2.Trade patterns based on internal economies of scale are intra-industry trade and inter-industry trade.3.Internal economies of scale may lead to monopoly, oligopoly, monopolistic competition.4.The unity and expansion of markets are the prerequisite for internal economies of scale to work.The reasons of external economies of scale 1.the effect of specialization among enterprises2.the effect of factor-sharing among enterprises3.the effect of knowledge-brimming among enterprises4.the effect of market agglomeration among enterprisesThe impacts on trade patterns based on external economies of scale1.Trade patterns based on external economies of scale is not certain.2.Small and medium-sized firms can get comparative advantage by external economies of scale and go into world marketTechnological gap is the direct reason for international trade.The basic idea behind the product cycle is that developed countries tend to specialize in producing new goods based on technological innovations, whereas the developing countries tend to specialize in the production of already well-established goods.The logical basis of overlapping demand theoryCountries with similar standards of living will tend to consume similar types of goods, and will tend to have the similar production structures. So trade will occur among countries with similar income level.The competitive advantages of nations具有比较优势的国家未必具有竞争优势Porter’s Competitive Advantage of NationsFactor endowments （basic factors and advanced factors)land, labor, capital, workforce, infrastructure, technologyDemand conditions large, sophisticated domestic consumer base: offers an innovation friendly environment and a testing groundRelated and supporting industrieslocal suppliers cluster around producers and add to innovationFirm strategy, structure, rivalry competition good, national governments can create conditions which facilitate and nurture such conditionsBalance of payments equilibrium and disequilibriumBalance of payments equilibrium is a state that the debits equals to the credits in the autonomous transactions. This would simply mean that their stocks of international reserves are unchangingDeficit in the balance of payments: the excess of debits over credits in the autonomous transactions. Deficit countries will experience reserve asset losses.Surplus in the balance of payments: the excess of credits over debits in the autonomous transactions. surplus countries will experience reserve asset accumulation.The price-specie-flow mechanism (价格现金流动机制） is an automatic adjustment mechanism under the gold standard.The deficit nation loses gold and experiences a reduction in its money supply. This in return reduces domestic prices, which stimulates the nation’s exports and discourages its imports until the deficit is eliminated. A surplus is corrected by the opposite process.The Effect of Exchange Rate Changes on balance of payment When a nation’s currency depreciates, domestic goods become relatively cheaper and foreign goods relatively more expensive in the global market.Hence, we would expect exports to rise and imports to decline.Marshall-Lerner condition depreciation/appreciation can correct the balance of payments if the sum of the price elasticity of the demand for imports and demand for exports, in absolute terms, is greater than 1.J-Curve following a depreciation or devaluation of the currency, the nation’s balance of payments worsens before it improves.J-curve effect: The deterioration before a net improvement in a country’s trade ba lance resulting from a depreciation or devaluation.Reasons for the J-Curve The M-L condition is satisfied in the long run but not in the short run. Short-run elasticity of demand are smaller than long-run elasticity because of the recognition lags; decision lags; delivery lags; replacement lags; production lags and so on. Comments on the elasticity approach 1.The balance of trade is simplified to the trade balance.2. The supply elasticity is assumed to be infinitely elastic.3. Real GNP is assumed to be constant.4. The depreciation/appreciation may cause other problems.Overview of The Absorption Approach 1This approach emphasizes changes in real domestic income and absorption as a determinant of a nation’s balance of payments.2The balance of trade is viewed as the difference between what the economy produces and what it absorbs for domestic use.The Monetary Approach to Balance-of-Payments1.There is a stable demand for money.2. Output, employment and other real variables are at their long-run equilibrium values.3. Free trade and capital flowThree expressions of balance of payment：B = X-M = Y-A =ΔSElasticity approach emphasizes the relationship between trade balance and exchange rate Absorption approach emphasizes the difference of output and absorption.Monetary approach emphasizes the change of the international reserve.Mint Parity Theory (铸币平价理论) Theory of Purchasing Power Parity（购买力平价理论）Theory of Interest Rate Parity（利率平价理论）The Monetary Approach（货币主义理论）The Portfolio Balance Approach （资产组合平衡理论）Factors that affect the demand for foreign exchange Investment abroadChanges in domestic income Changes in relative price A country’s tas tes and preferences Factors that affect the supply of foreign exchangeChanges in foreign income Changes in relative prices ForeigninvestmentTheory of Purchasing Power ParityThe law of one price Disregarding barriers to trade and transportation costs, the law of one price states that identical goods sold in competitive markets should cost the same everywhere when prices are expressed in terms of the same currency.Purchasing Power Parity is the theory that changes in exchange rates are related to changes in relative prices among countries.Purchasing Power Parity states that an exchange rate between two countries should equal the ratio of the price level in one country to the price level in the other country.Absolute Purchasing Power Parity is the theory that the bilateral exchange rate between two countries is related to the ratio of the level of prices between two countries.EAB=PA/PB Relative Purchasing Power Parity between two countries states that the percentage change in the bilateral exchange rate is equal to the difference in the percentage change in the national price levels over any given period of time.Theory of Interest Rate Parity This theory emphasizes the relationship between interest rate and the spot exchange rate and the forward exchange rate. This theory contains uncovered interest rate parity(无抛补利率平价)and covered interest rate parity（抛补利率平价）The Portfolio Balance ApproachThe portfolio balance approach assumed that the domestic and foreign bonds were imperfect substitutes.The exchange rate is determined in the process of equilibrating or balancing the total demand and supply offinancial assets in one country.All the individuals and firms hold their financial wealth in some combination of domestic money, a domestic bond, and a foreign bond denominated in the foreign currency.factor-proportions theoryThis theory tried to explain the causes of comparative advantage and states that a country’s comparative advantage is determined by its initial resource endowments.The factor-proportions theorem The factor-proportions theorem states that a country has a comparative advantage in, and exports, the good that intensively use the country’s abundant factor of production. Conversely, a country has a comparative disadvantage in, and imports, the good that intensively uses the country’s relatively sc are factor of production. Factor Price Equalization Theorem Given all the assumptions of the HO model, international trade will bring about equalization in the relative and absolute returns to homogeneous factors across nations.1)Trade and the distribution--Stolper-Samuelson theoremIt states that an increase in the relative price of a commodity raises the real price of the factor used intensively in the commodity’s production and reduces t he real price of the other factor. These changes in factor prices tend to increase the percentage of national income the abundant factor receives. The reverse is true for the scare factor.THE RYBCZYNSKI THEOREM: At constant world prices, if a country experiences an increase in the supply of one factor, it will produce more of the product intensive in that factor and less of the other. If the enlarged industry is exporting industry, the trade volume will increase, and the terms of trade will worsen. While ifthe industry is importing-competitive industry, the trade volume will decrease and the terms of trade will improve.While for a small country, the terms of trade stays constant.2) Factor Growth and Immiserizing Economic Growth Generally speaking, econom ic growth can increase a nation’s welfare. But in the case of a la rge nation, the great expansion of its exporting industry can enlarge the volume of exporting and force the price of exporting commodity to go down. If the price of exporting commodity goes down seriously, this may offset the income effect of economic growth, and cause net loses of national welfare.3) Factor Growth and the reversal of Comparative Advantage （比较优势逆转）If a nation’s relatively scarce factor grows greatly, it may cause the natio n’s comparative advantage to reverse. The former exporting industry may turn to the importing industry and the former importing industry may turn to the exporting industry. This phenomenon is called “the Reversal of Comparative Advantage”Specific factor is the factor that is used in a specific industry.Leontief Paradox The contradiction between the empirical results of Leontief and the conclusion of the factor proportions theorem is called Leontief Paradox.Reasons Natural Resources R&D factor Great differentiations of tastesSerious factor-price distortion Factor-intensity reversal (要素密集度逆转）Special structure of trade barriers Effect of Different Labor Efficiency Human capital Open economy Closed Economy: There are no economic relations with other countries. No exports, noimports, and no capital flows.Open Economy: An economy that interacts freely with other economies around the world.Internal balance and external balanceThe most important goals of open economies are internal balance and external balance. Internal balance: a steady growth of the domestic economy, low unemployment rate and low inflation rate. External balance: equilibrium in the balance of paymentsMajor policy instruments （1）Expenditure-changing policies (支出改变政策）Expenditure-changing policies include both fiscal policies and monetary policies.Fiscal policies refers to changes in government expenditures, taxes, or both.Monetary policy involves a change in the nation’s money supply that affects domestic interest rates and price level.(2) Expenditure-switching policies （支出转移政策）Expenditure-switching policies refer to changes in the exchange rate.A devaluation switches expenditures from foreign to domestic commodities and a overvaluation switches expenditures from domestic to foreign products.(3) Direct control （直接管制）Direct controls consist of quotas and other restrictions on the flow of international trade and capital.How a nation maintains the fixed exchange rate?T o hold the exchange rate constant, a central bank must always be willing to trade currencies at the fixed exchange rate with the private actors in the foreign exchange market.Non-sterilized intervention (非消毒干预，非冲销操作）and sterilized intervention Sterilized intervention means that Central banks carry out equal foreign and domestic asset transactions in opposite direction to nullify the impact of their foreign exchange operations on the domestic money supply. Sterilization has no effect on the money supply.while a country can’t use the sterilized intervention in the long run.Non-sterilized intervention means that the central banks only carry out the foreign exchange intervention to keep the constant exchange rate and the money supply has changed based on this. the surplus of the balance of payments will increase the money supply in a nation. The deficit of the balance of the payments will decrease the money supply in a nation short-run and static effects of customs unionsConsumer surplus: +(a+b+c+d) Supplier surplus: -a Government revenue: –(c+e)Overall welfare: (b+d)-e , e is the trade division effect, b+d is the trade creation effect. Long-run and dynamic effects of customs unions Economies of scale from the enlarged market. Stimulus to investment and economic growth. Increased competitionPromote technological progress. Lead to regional monopoly in the long run.Effective rate of protection a measurement of the amount of protection provided to an industry by a country’s tariff schedule Balance of payments: A summary statement of all the international transactions of the residents of a nation with the rest of the world during a particular period of time, usually a year. Exchange rate: The domestic currency price of the foreigncurrency。
