introduction land area and population income income per capita international trade the balance of...
TRANSCRIPT
![Page 1: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/1.jpg)
Introduction
Land area and population
Income
Income per capita
International trade
The balance of payments
Dynamics and globalization
Trade connections in the world economy
Conclusions
CHAPTER 1; THE WORLD ECONOMYInternational Trade & the World Economy; Charles van Marrewijk
![Page 2: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/2.jpg)
Explanations for trade
Classical 2. Opportunity costs 3. Comparative advantage
Neo-classical 4. Production structure 5. Factor prices 6. Production volume 7. Factor abundance
1. The world economy
New trade 9. Imperfect competition 10. Intra-industry trade
Policy
8. Trade policy
11. Strategic trade policy
12. Int. trade organizations 13. Economic integration
17. Applied trade policy modeling
Economicgeography
New interactions 14. Geographical economics 15. Multinationals 16. New goods, growth, and development
Industrialorganization
Internationalbusiness
Growth theory
Par
t I
Part
II
Part
III
Part
IV
18. Concluding remarks
![Page 3: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/3.jpg)
Introduction
Land area and population
Income
Income per capita
International trade
The balance of payments
Dynamics and globalization
Trade connections in the world economy
Conclusions
CHAPTER 1; THE WORLD ECONOMYInternational Trade & the World Economy; Charles van Marrewijk
![Page 4: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/4.jpg)
Introduction International Trade & the World Economy; Charles van Marrewijk
International economics distinguishes between:
• International monetary analysis
• International real analysis
International Trade & the World Economy focuses on real analysis.
Chapter 1 The World Economy discusses some key economic concepts, focusing on ‘important’ countries.
![Page 5: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/5.jpg)
Introduction
Land area and population
Income
Income per capita
International trade
The balance of payments
Dynamics and globalization
Trade connections in the world economy
Conclusions
CHAPTER 1; THE WORLD ECONOMYInternational Trade & the World Economy; Charles van Marrewijk
![Page 6: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/6.jpg)
Land area and population International Trade & the World Economy; Charles van Marrewijk
Table 1.1 Top 15 land area (1000 km2), 1999
country size % of world sum %
1 Russia 16,889 13.0 13
2 China 9,327 7.2 20
3 Canada 9,221 7.1 27
4 USA 9,159 7.0 34
5 Brazil 8,457 6.5 41
6 Australia 7,682 5.9 47
7 India 2,973 2.3 49
8 Argentina 2,737 2.1 51
9 Kazakhstan 2,671 2.1 53
10 Algeria 2,382 1.8 55
![Page 7: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/7.jpg)
Land area and population International Trade & the World Economy; Charles van Marrewijk
Table 1.2 Top 15 population (millions), 1999
country size % of world sum %
1 China 1,254 21.0 21
2 India 998 16.7 38
3 USA 278 4.7 42
4 Indonesia 207 3.5 46
5 Brazil 168 2.8 49
6 Russia 146 2.4 51
7 Pakistan 135 2.3 53
8 Bangladesh 128 2.1 55
9 Japan 127 2.1 58
10 Nigeria 124 2.1 60
![Page 8: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/8.jpg)
Introduction
Land area and population
Income
Income per capita
International trade
The balance of payments
Dynamics and globalization
Trade connections in the world economy
Conclusions
CHAPTER 1; THE WORLD ECONOMYInternational Trade & the World Economy; Charles van Marrewijk
![Page 9: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/9.jpg)
Income International Trade & the World Economy; Charles van Marrewijk
To measure the value of all goods and services we distinguish:
• GDP = Gross Domestic Product (located in a country)
• GNP = Gross National Product (residents of a country)
GDP + net receipts of factor income = GNP
To correct for the large differences in prices between countries (especially for non-traded goods and services) the United Nations International Comparison Project calculates:
• Purchasing Power Parity exchange rates
![Page 10: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/10.jpg)
Income International Trade & the World Economy; Charles van Marrewijk
0
500
1000
1500
2000
2500
0 500 1000 1500 2000 2500
GDP
GN
P
Germany
UK, France
Italy
China
GNP and GDP
![Page 11: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/11.jpg)
Income International Trade & the World Economy; Charles van Marrewijk
Table 1.3 Top 15 gross national product (current $bn.), 1999
country size % of world sum %
1 USA 9,163 29.8 30
2 Japan 4,395 14.3 44
3 Germany 2,091 6.8 51
4 UK 1,450 4.7 56
5 France 1,440 4.7 60
6 Italy 1,162 3.8 64
7 China 971 3.2 67
8 Brazil 730 2.4 70
9 Canada 615 2.0 72
10 Spain 589 1.9 74
![Page 12: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/12.jpg)
Income International Trade & the World Economy; Charles van Marrewijk
550
704
728
776
780
1022
1148
1268
1322
1349
1930
2226
3186
4452
8878
0 3000 6000 9000
Indonesia
Spain
South Korea
Canada
Mexico
Russia
Brazil
Italy
UK
France
Germany
India
Japan
China
USA
PPP $ current $
GNP in
• current $
and
• PPP $
![Page 13: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/13.jpg)
Introduction
Land area and population
Income
Income per capita
International trade
The balance of payments
Dynamics and globalization
Trade connections in the world economy
Conclusions
CHAPTER 1; THE WORLD ECONOMYInternational Trade & the World Economy; Charles van Marrewijk
![Page 14: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/14.jpg)
Income per capita International Trade & the World Economy; Charles van Marrewijk
Income per capita, ppp
9,900 to 41,300 (42)4,500 to 9,900 (37)2,100 to 4,500 (37)
400 to 2,100 (44)
![Page 15: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/15.jpg)
Introduction
Land area and population
Income
Income per capita
International trade
The balance of payments
Dynamics and globalization
Trade connections in the world economy
Conclusions
CHAPTER 1; THE WORLD ECONOMYInternational Trade & the World Economy; Charles van Marrewijk
![Page 16: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/16.jpg)
International trade International Trade & the World Economy; Charles van Marrewijk
Table 1.5 Top 15 international trade ($bn.), 1999
country exports % of world country imports % of world
1 USA 956 13.7 USA 1,116 15.9
2 Germany 626 8.9 Germany 593 8.5
3 Japan 465 6.6 UK 396 5.7
4 France 382 5.5 Japan 380 5.4
5 UK 374 5.3 France 338 4.8
6 Italy 292 4.2 Italy 275 3.9
7 Canada 278 4.0 Canada 259 3.7
8 Netherlands 249 3.6 Netherlands 220 3.1
9 China 219 3.1 Hong Kong 203 2.9
10 Hong Kong 212 3.0 China 190 2.7
![Page 17: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/17.jpg)
International trade International Trade & the World Economy; Charles van Marrewijk
0
200
400
600
800
1000
1200
0 200 400 600 800 1000 1200
export value
impo
rt v
alue
Netherlands
Japan
Germany
USAExports
relative to
imports
![Page 18: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/18.jpg)
International trade International Trade & the World Economy; Charles van Marrewijk
170
133122 115 113
107 102 9988 88
0
50
100
150S
inga
pore
Hon
g K
ong
Mal
aysi
a
Bah
rain
Luxe
mbo
urg
Sw
azila
nd
Eq.
Gui
nea
Guy
ana
Mal
ta
Irel
and
The value of exports can exceed the level of GDP
![Page 19: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/19.jpg)
Introduction
Land area and population
Income
Income per capita
International trade
The balance of payments
Dynamics and globalization
Trade connections in the world economy
Conclusions
CHAPTER 1; THE WORLD ECONOMYInternational Trade & the World Economy; Charles van Marrewijk
![Page 20: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/20.jpg)
The balance of payments International Trade & the World Economy; Charles van Marrewijk
The balance of payments
Merchandise
Services
Investment income
Unilateral transfers
Current account
Capital account
Short-term capital
Long-term capital
Trade balance
Foreign direct investment
Portfolio investment
Private non-monetary
Private monetary institutions
Official reserves
![Page 21: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/21.jpg)
Introduction
Land area and population
Income
Income per capita
International trade
The balance of payments
Dynamics and globalization
Trade connections in the world economy
Conclusions
CHAPTER 1; THE WORLD ECONOMYInternational Trade & the World Economy; Charles van Marrewijk
![Page 22: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/22.jpg)
Dynamics and globalization International Trade & the World Economy; Charles van Marrewijk
0 balanceaccountcapitalbalanceaccountcurrentoutflowcapitalnetaccountcurrentsurplus
-8
0
8
1970 1980 1990 2000
Australia Netherlands
Current account surplus (% of GDP)
indicator of accumulation of financial claims on the Rest Of the World (ROW).
![Page 23: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/23.jpg)
Dynamics and globalization International Trade & the World Economy; Charles van Marrewijk
0
100
200
300
400
500
1960 1970 1980 1990 2000
inde
x (1
960
= 1
00)
population
GDP
World GDP increases faster than world population
![Page 24: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/24.jpg)
Dynamics and globalization International Trade & the World Economy; Charles van Marrewijk
0
5
10
15
20
25
30
1960 1970 1980 1990 2000
wor
ld e
xpor
ts (
% G
DP
)
World exports increase faster than world GDP
![Page 25: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/25.jpg)
Introduction
Land area and population
Income
Income per capita
International trade
The balance of payments
Dynamics and globalization
Trade connections in the world economy
Conclusions
CHAPTER 1; THE WORLD ECONOMYInternational Trade & the World Economy; Charles van Marrewijk
![Page 26: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/26.jpg)
Trade connections in the world economy
International Trade & the World Economy; Charles van Marrewijk
Exports in direction closed arrow(Exports in direction open arrow)
South Asia
Latin America
Sub-Sahara Africa
Middle East &North Africa
AustralAsia
North America
East Asia& Pacific
WestEurope
East Europe & C. Asia
28
6
1
1
1
4
1 (2) 1 (2)
4 (5)
2 (3)
3 (3)3 (4)
1 (1)
1
1 (1)
1 (1)
3 (4)
3 (3)
(1)
Intra-regional exports
![Page 27: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/27.jpg)
Introduction
Land area and population
Income
Income per capita
International trade
The balance of payments
Dynamics and globalization
Trade connections in the world economy
Conclusions
CHAPTER 1; THE WORLD ECONOMYInternational Trade & the World Economy; Charles van Marrewijk
![Page 28: Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e5c5503460f94b54468/html5/thumbnails/28.jpg)
Conclusions International Trade & the World Economy; Charles van Marrewijk
‘Importance’ of countries varies with measure used:
• Land area Russia, China, Canada
• Population China, India, USA
• GDP/GNP, current $ USA, Japan, Germany
• GDP/GNP, PPP $ USA, China, Japan
• Import/export USA, Germany, Japan/UK
Surplus current account = net capital outflow
GDP increases faster than population
Exports increase faster than GDP
Trade flows have local character
Trade flows mainly between high income countries