hnd经济学世界经济学.docx

文件管理序列号：[K8UY-K9IO69-O6M243-OL889-F88688] 文件管理序列号：[K8UY-K9IO69-O6M243-OL889-F88688] hnd经济学世界经济学 Economics2: The World Economy F86E 35 Candidate Name: REN LU Grade and Class: 2013 BA1 TOC \o 1-3 \h \z \u Introduction This report has introduced the world economics simply. The content includes: International trade, free trade, Protectionism, the role of WTO and under-developed nation, UK absolute and comparative advantage, the protectionism and two recent examples about demonstrate arguments which government may put forward for its use, two barriers of trade, a EU initiative about the role of the EU in promoting trade, the composition of the balance of payments, the general trends in UK trade over the last 30 years, the way which the balance of payments affected by exchange rates, an analysis of two current issues that face LDCs, and the aid of recent examples about two impacts of multinationals on NICs and LDCs. I. Free trade (1). Free trade is a type of trade policy that allows traders to act and transact without interference from government. Thus, the policy permits trading partners mutual gains from trade, with goods and services produced according to the theory of comparative advantage. After the establishment of CAFTA, more than 90% products are carried out for zero tariffs on both sides. Average tariffs from Chinese to ASEAN decrease from 9.8% to 0.1%, Average tariffs from ASEAN’s six old members to Chinese decrease from 12.8% to 0.6%. Tariffs’ huge reduction promoted the rapid growth of bilateral trade. China (2). Absolute advantages and comparative advantages Absolute advantages is said to occur when one country can produce a good or service to pre-determined quality with less resources or more cheaply than another country. Even when a country has an absolute advantage over another country in terms of commodities they wish to trade it will still be to their mutual advantage to trade p