国际经济学课后答案第一章

PART I INSTRUCTOR’S MANUAL CHAPTER 1 THE INTERNATIONAL ECONOMY CHAPTER OVERVIEW This chapter introduces students to the international economy. The first part of the chapter emphasizes the high degree of economic interdependence that characterizes today’s economies. Economic interdependence includes international trade and international finance. The chapter also focuses on the United States as an open economy. Data are provided that show U.S. exports as a percent of gross domestic product and the value of U.S. trade with its major trading partners. The chapter notes that many U.S. firms source a portion of the production of their goods in foreign countries. The chapter concludes by discussing the nature of international competitiveness--for firms, industries, and nations. It is noted that exposure to global competition tends to improve the efficiency of firms. Finally, the chapter introduces the potential effects that international trade has on workers. After completing the chapter, students should be able to: Define economic interdependence. Discuss the importance of international trade for the U.S. economy. Examine the factors that make a company American. Discuss the nature of competitiveness and how it applies to firms, industries, and nations. Identify the advantages and disadvantages of international trade for workers. BRIEF ANSWERS TO STUDY QUESTIONS 1. Interdependence among today's economies reflects the historical evolution of the world's economic and political order. Since World War II, Europe and Japan have reindustrialized. What is more, the formation of the European Community and the Organization of Petroleum Exporting Countries, as well as the rise of multinational corporations, has contributed to closer economic and political linkages. 2. Proponents of an open trading system maintain that free trade leads to lower prices, the development of more efficient production methods, and a greater range of consumption choices. Free trade permits resources to move from their lowest productivity to their highest productivity. Critics of an open trading system maintain that import competition may displace domestic firms and workers. It is also argued that during periods of national emergency, it is in the best interests of a nation to protect strategic industries. 3. For the United States, growing economic interdependence has resulted in exports and imports increasing as a share of national output. Profits of domestic firms and wages of domestic workers are increasingly being affected by foreign competition. Political and economic events play important roles for the operation of some sectors of the American economy, such as energy and agriculture. 4. The volume of international trade is governed by factors including the level of domestic economic activity (e.g., prosperity versus recession) and restrictions imposed by countries on their imports. 5. The chapter describes three fallacies of international trade: a. Trade is a zero sum activity b. Imports reduce employment and act as a drag on the economy c. Tariffs and quotas will save jobs and promote a higher level of employment 6. International competitiveness refers to the extent to which the goods of a firm or industry can compete in the marketplace; this competitiveness depends on the relative prices and qualities of products. No nation can