1 BRIEF ANSWERS TO STUDY QUESTIONS（课后练习参考答案）（课后练习参考答案） Chapter 1 1. Interdependence among todays economies reflects the historical evolution of the worlds 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 be competitive in, and thus be a net exporter of everything. Because a nations stock of resources is limited, the ideal is for these resources to be used in their most productive manner. Nations will benefit from specialization and trade by exporting products having a comparative advantage. 7.Researchers at the McKinsey Global Institute have found that global competitiveness is a bit like sports. You get better by playing against folks who are better than you. This means companies are exposed to intense global competition tend to be more productive than those who arent. 8.International trade benefits most workers, especially those in exporting industries. In addition to providing Chapter 1: The International Economy them jobs and income, it allows them to shop for consumption goods that are cheapest and of the highest quality. However, workers in import-competing industries often feel threatened from competition of cheap foreign labor. 9.Among the challenges confronting the international trading system are maintaining fair standards for labor and promoting environmental quality. 10.The threat of international terrorism tends to slow the degree of globalization and also make it become costlier. With terrorism, companies must pay more to insure and provide security for overseas staff and property. Heightened border inspections could slow shipments of cargo, forcing companies to stock more inventory. Tighter immigration policies could reduce the liberal inflows of skilled and blue-collar laborers that permitted companies to expand while keeping wages in check. Moreover, a greater preoccupation with political risk has companies greatly narrowing their horizons when making new investments. Chapter 2 1.Modern trade theory addresses the following questions: (1) What constitutes the basis for trade? (2) At what terms of trade do nations export and import certain products? (3) What are the gains from trade in terms of production and consumption? 2.The mercantilists maintained that government should stimulate exports and restrict imports so as to increase a nations holdings of gold. A nation could only gain at the expense of other nations because not all nations could simultaneously have a trade surplus. Smith maintained that with free trade, international specialization of resources in production leads to an increase in world output which can be shared by both trading partners. All nations simultaneously can enjoy gains from trade in terms of production and consumption. 3.Assume that by devoting all of its resources to the production of steel, France can produce 40 tons. By devoting all of its resources to televisions, France can produce 60 televisions. Comparable figures for Japan are 20 tons of steel and 10 televisions. In this example, France has an absolute advantage in the production of steel and televisions. France has a comparative advantage in televisions. 4.Ignoring the role of demands impact on mar