1、International Business EnglishLesson 5International Trade I第1页Business Knowledge(1)The definition of international trade(2)Two reasons for international trade A.The uneven distribution of natural resources among countries B.International specialization第2页(3)Two theories for international specializat
2、ion A.The theory of absolute advantage B.The theory of parative advantage a.Contents of the theory b.Not a static concept c.The cornerstone of modern thinking on international trade d.David Ricardo,the economist who introduced the theory第3页Trade Terms 1.Services 服务2.Primary modities 初级产品3.Specializa
3、tion 专业化:To restrict ones economic activities to certain particular fields.4.Absolute advantage 绝对利益:It holds that a modity will be produced in the country where it costs least in terms of resources(capital,land and labor)第4页5.Comparative advantage 比较利益:It holds that even if a country is less effici
4、ent than another in the production of both modities,i.e.it has absolute disadvantage in production both modities,there is still a basis for mutually beneficial trade.第5页6.Capital 资本7.Land and labor 土地和劳动力8.International trade 国际贸易:The exchange of goods and services produced in one country with those
5、 produced in another sufficient.9.Farm produce 农产品10.Scarce resources 稀缺资源第6页In the plex economic world,no country can be pletely self-sufficient.第7页With the development of manufacturing and technology,there arose another incentive for trade,i.e.international specialization.第8页According to the theor
6、y of Comparative advantage,both trade partners can benefit from trade.第9页Comparative advantage is not a static concept.A country may develop a particular parative advantage purely through its own actions第10页The idea of parative advantage has be e the cornerstone of modern thinking on international trade.第11页