Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
2019
There are lots of problems with trade
◦ There may be some ways that some
governments can make things better by
intervening (that is, by not practicing free trade)
3.75 18
Rice
tons tons
The country less efficient in everything
will be poor …
But it would be
even poorer if it
did not trade
They believed that if people were left to
trade on their own, they would naturally
trade the goods in which their countries had
comparative advantage
◦ “Every individual seeks the most
advantageous employment for his capital….
◦ “Study of his own advantage necessarily leads
him to prefer that employment most
advantageous to society”
- Adam Smith, 1776
This is a very simple case, but the basic
conclusions are generally valid
◦ We’re assuming no transportation costs
◦ We’re simplifying by not talking about
currencies
◦ We’re assuming constant returns to scale
◦ We’re assuming resources can move freely
from production of one good to another
◦ We’re not thinking about effects on
income distribution
Extra credit opportunity
Open Discussion on
◦ a country or
◦ a region (even a town/city)
◦ some other subject in global business
Length –
◦ 6 to 10 minutes (individual)
◦ Up to 18 minutes (group)
A country presentation can describe
◦ The economic environment
How do people live?
What is GNI per capita
Provide both unadjusted and purchasing power parity
(PPP) adjusted statistics
How does GNI per capita level affect life?
◦ The political environment
How is the country/region governed?
◦ Something of the cultural environment
You can’t summarize the culture;
just say one or two things that strike
you as important
◦ The country or region’s role in international
business
What does the country or region produce?
How important is it to people elsewhere?
Can you tell what is likely to happen in the future?
Free Trade occurs when a government
does not attempt to influence, through
tariffs, quotas, or other means,
◦ what citizens can buy from other countries or
◦ produce and sell to other countries
3.75 18
Rice
tons tons
The country less efficient in everything
will be poor …
But it would be even poorer if it did not trade
International Trade
Counter Trade
41
International Trade
Counter Trade
42
Intl. Counter Trade
Buyback Barter: sistem penerapan alih teknologi dari
suatu negara maju kepada negara berkembang, dengan
cara menciptakan kapasitas produksi di negara
berkembang dan hasilnya akan dibeli kembali oleh
negara maju
43
Intl. Counter Trade (2)
Direct Barter: sistem pertukaran barang dengan
menggunakan “denominator of value” suatu mata uang
asing dengan cara ‘clearing’ pada neraca perdagangan
antar negara yang bersangkutan.
44
Intl. Counter Trade (3)
Switch Trading / Barter: sistem ini diterapkan apabila
salah satu pihak tidak mungkin memanfaatkan produk
yang diterimanya dari pertukaran tersebut, maka negara
pengimpor dapat mengambil alih produk tersebut
kepada pihak ketiga.
45
Intl. Counter Trade (4)
Counter Purchase: sistem perdagangan timbal balik
antar 2 negara, jika salah satu negara menjual suatu
produk maka negara yang bersangkutan juga harus
membeli produk dari negara tersebut.
46
Intl. Counter Trade
Buyback Barter: sistem penerapan alih teknologi dari
suatu negara maju kepada negara berkembang, dengan
cara menciptakan kapasitas produksi di negara
berkembang dan hasilnya akan dibeli kembali oleh
negara maju
47
Intl. Counter Trade (2)
Direct Barter: sistem pertukaran barang dengan
menggunakan “denominator of value” suatu mata uang
asing dengan cara ‘clearing’ pada neraca perdagangan
antar negara yang bersangkutan.
48
Intl. Counter Trade (3)
Switch Trading / Barter: sistem ini diterapkan apabila
salah satu pihak tidak mungkin memanfaatkan produk
yang diterimanya dari pertukaran tersebut, maka negara
pengimpor dapat mengambil alih produk tersebut
kepada pihak ketiga.
49
Intl. Counter Trade (4)
Counter Purchase: sistem perdagangan timbal balik
antar 2 negara, jika salah satu negara menjual suatu
produk maka negara yang bersangkutan juga harus
membeli produk dari negara tersebut.
50
They believed that if people were left to
trade on their own, they would naturally
trade the goods in which their countries had
comparative advantage
◦ “Every individual seeks the most
advantageous employment for his capital….
◦ “Study of his own advantage necessarily leads
him to prefer that employment most
advantageous to society”
- Adam Smith, 1776
This is a very simple case, but the basic
conclusions are generally valid
◦ We’re assuming no transportation costs
◦ We’re simplifying by not talking about
currencies
◦ We’re assuming constant returns to scale
◦ We’re assuming resources can move freely
from production of one good to another
◦ We’re not thinking about effects on
income distribution
Under free trade, the country that is less
efficient will have low wages
It will be able to sell the products where it has
comparative advantage without any special
tariff or subsidy protection
But it may need to work on infrastructure –
roads, railroads, ports, airports
◦ “Infrastructure” = the basic equipment and
structures (such as roads, bridges) that are needed
for a country, region, etc. to function properly
Note: This may not be in the reading
Diminishing returns:
◦ Diminishing returns to specialization suggests that
after some point, the more units of a good the
country produces, the greater the additional
resources required to produce an additional unit
So comparative advantage will vary with production
Free trade has additional effects in open
economies:
◦ Free trade might increase a country’s stock of
resources (as labor and capital arrives from abroad)
◦ It could also increase the efficiency of resource
utilization inside each country as well as between
them
◦ It causes knowledge to move between countries
It also changes tastes and cultures
When might government intervention
help a country?
The infant industry argument: There may be
industries that are uncompetitive today but could
become competitive if protected for a while