⽂藻外語⼤學
國際事務系 與碩⼠班
Dept. of International Affairs
Master’s Program
Wenzao Ursuline University of Languages
Economics
7
Internation
al Trade,
Free Trade
的進⼝數量予以限制。
• 61 An import quota is a limit on the quantity of a good that can be produced abroad and sold domestically. 進⼝配額－對進⼝品
更多更好的構想能傳達。
competition, Enhanced flow of ideas. 其他國際貿易的優點，使商品的選擇性變多，使經濟⽐例的成本降低，增加了競爭，使
• 62 Other Benefits of International Trade: Increased variety of goods, Lower costs through economies of scale, Increased
Chip 限制國際貿易的理由：就業的論點、國家安全論點、幼稚⼯業的論點、不公平競爭的論點、保護政策可作為⼀種談判籌
• 63 Reasons to restrict international trade: Jobs, National Security, Infant Industry, Unfair Competition, Protection-as-a-Bargaining
碼的論點。
• 64 The effects of free trade can be determined by comparing the domestic price without trade to the world price. A low domestic
price indicates that the country has a comparative advantage in producing the good and that the country will become an
⽐較沒有貿易之前國內的價格和世界價格，就可以知道開放貿易所產⽣的影響
如較世界價格為低，該國對該項產品的⽣產就有⽐較利益，會成為該產品的輸出國
the country will become an importer. 國內價格
exporter. A high domestic price indicates that the rest of the world has a comparative advantage in producing the good and that
國內價格如較世界價格為⾼，其他國家對 .
該項產品的⽣產就有⽐較利益，本國會輸⼊該產品 .
.
• 65 When a country allows trade and becomes an exporter of a good, producers of the good are better off, and consumers of the
當⼀個國家准許⾃由貿易，並成為某項產品的出⼝國時，該項產品的⽣產者會受惠，⽽消費者則受
good are worse off. When a country allows trade and becomes an importer of a good, consumers of the good are better off, and
到損失 當⼀個國家准許⾃由貿易，並成為某項產品的進⼝國時，該項產品的消費者會受惠，⽽⽣產者會蒙受損失
producers are worse off.
. .
經濟學家認為⾃由貿易還是⽐較好的政策
• 66 Economists, however, believe that free trade is usually the better policy. .
⼀個⼈的⾏為若影響其他⼈的福利，同時⼜沒有給予對
• 67 An externality refers to the uncompensated impact of one person’s actions on the well-being of a bystander. Externalities
⽅補償，這種影響稱為外部性。外部性使得市場失去效率，導致無法使總剩餘⼤到極⼤化。
cause markets to be inefficient, and thus fail to maximize total surplus.
外部不經濟：汽⾞排放的廢氣、⼆⼿煙、狗吠叫（吵鬧的寵物）、公寓裡吵鬧的⾳響
• 68 Negative Externalities: Automobile exhaust, Cigarette smoking, Barking dogs (loud pets), Loud stereos in an apartment
building
史價值的建築物回復舊觀 新科技的研究成果 外部經濟：免疫 把具有歷
• 69 Positive Externalities: Immunizations, Restored historic buildings, Research into new technologies
,
,
部性的內⽣化－是提供誘因，使⼈們的⾏為，能考慮到對他⼈的影響。 外
• 70 Internalizing an externality involves altering incentives so that people take account of the external effects of their actions.
Since January 2018, U.S.
President Donald Trump
began setting tariffs and
other trade barriers on
China products.
History of
China US
Trade
US Concerns
1 We buy a lot from you and you buy little from us. It is not fair.
2 My products are bad? Or you intended to block my products?
3 My American products are certainly good. So, it must be China cheating.
4 China cheats. China set high tariff on American products. China national
policy encouraged citizens to but non-American products. Export subsidy,
currency manipulation, import quota and regulation. Under table rules.
Property rights theft. National security threat. National team damage the free
trade free market norm. Unfair game.
5 We gain 100 bn dollars = We lost 400 bn dollars (Absolute vs Relative gain)
6 Political economic and cultural war involved
7 Let’ s give up on any imports by raising tariff to unbearable level.
China Concerns
1 Nowadays China made money from international trade no more than 1% of
GDP. China cares about the volume, no longer cares about trade surplus.
Volume created jobs, that’ s what Beijing needs.
2 It’ s true that American products are not popular in the world. American
has stuff China really wants but not open for sale such as high technology
and weapon.
3 Fighting with the US or not both hurts its jobs. China chose the strategy hurt
less.
4 China tried to redirect the order both import and export. China went through
a drastic pain in those years.
5 China needs a strong image when dealing with Americans. Beijing needs
nationalism support.
6 Let’ s bring it on!
After their bitter breakup…
Then…
Result
China continue to gain from trade, but not with the US. US continue
to have trade deficit, so Trump wanted to wage trade war with
Mexico.
WHY?
Now we come back to the trade theory
The Lessons for Trade Policy
• If government sells import
licenses for full value, revenue
equals that of an equivalent
tariff and the results of tariffs
and quotas are identical.
The Lessons for Trade Policy
• Both tariffs and import
quotas . . .
• raise domestic prices.
• reduce the welfare of domestic
consumers.
• increase the welfare of
domestic producers.
• cause deadweight losses.
The Lessons for Trade Policy
• Other Benefits of
International Trade
• Increased variety of goods
• Lower costs through
economies of scale
• Increased competition
• Enhanced flow of ideas
THE ARGUMENTS FOR RESTRICTING
TRADE
• Jobs
• National Security
• Infant Industry
• Unfair Competition
• Protection-as-a-Bargaining
Chip
CASE STUDY: Trade Agreements and the World Trade
Organization
• Unilateral: when a country
removes its trade restrictions
on its own.
• Multilateral: a country
reduces its trade restrictions
while other countries do the
same.
CASE STUDY: Trade Agreements and the World Trade
Organization
• NAFTA
• The North American Free Trade
Agreement (NAFTA) is an
example of a multilateral trade
agreement.
• In 1993, NAFTA lowered the
trade barriers among the United
States, Mexico, and Canada.
CASE STUDY: Trade Agreements and the World Trade
Organization
• GATT
• The General Agreement on Tariffs and
Trade (GATT) refers to a continuing
series of negotiations among many of
the world’ s countries with a goal of
promoting free trade.
• GATT has successfully reduced the
average tariff among member
countries from about 40 percent after
WWII to about 5 percent today.
Summary
• The effects of free trade can be
determined by comparing the
domestic price without trade to the
world price.
• A low domestic price indicates that
the country has a comparative
advantage in producing the good and
that the country will become an
exporter.
• A high domestic price indicates that
the rest of the world has a
comparative advantage in producing
the good and that the country will
become an importer.
Summary
• When a country allows trade and
becomes an exporter of a good,
producers of the good are better off,
and consumers of the good are
worse off.
• When a country allows trade and
becomes an importer of a good,
consumers of the good are better
off, and producers are worse off.
Summary
• A tariff— a tax on imports—
moves a market closer to the
equilibrium than would exist
without trade, and therefore
reduces the gains from trade.
• Import quotas will have
effects similar to those of
tariffs.
Summary
• There are various arguments for
restricting trade: protecting jobs,
defending national security, helping
infant industries, preventing unfair
competition, and responding to
foreign trade restrictions.
• Economists, however, believe that
free trade is usually the better
policy.
⽂藻外語⼤學
國際事務系 與碩⼠班
Dept. of International Affairs
Master’s Program
Wenzao Ursuline University of Languages