International Trade and Growth

Résumé du document

Now, in 2007, international exchanges in the world has become very frequent. Since 1945, we have seen a very strong growth of international exchanges, the world exports has progressed twice as quickly as world production. World trade accounted for 10% of the world wealth in 1960 whereas it represents more than 25% now. It is a consequence of the liberalist system. In fact, international trade is the exchange of goods and services in the entire world. We will speak about this phenomenon and explain it. We will work around one main question, that is, 'is the opening of international exchanges always a synonym of growth?'

Extraits

[...] International trade working a. Theory b. Regulation Principe 2. Economic opening, international trade and growth a. A Chinese expansion with the international trade b. To know how to profit international exchanges Conclusion Introduction Now, in 2007 the international exchanges in the world are frequent. Since 1945, we have seen a very strong growth of the international exchanges, the world exports progressed twice more quickly than the world production[1]. World trade accounted for of the world wealth in 1960 whereas it represents more than 25% nowadays. [...]

[...] It consist in add the exportation notion in the system. Country that has goods in abundance can export them and import other goods locally scarce. In a ricardian model, trade among nation is motivated by difference in productivity. Recording to the reality, we could see that trade is also motivated by the different environment factor. HOS model is the basic frame cadre theoricy work of proportion for factor theory. There are the Specific factors. This theory suggests that an increase in the price of good is profitable to the owners of the factor of production specific of that good. [...]

[...] This observation shows the importance of international exchanges in the economic growth of a country. Conclusion The observation of the North Korean model based on a closed economy put in evidence the systems limits in term of standard of living and growth rhythm. To the contrary, the very quick development of the Chinese growth based on a low cost politic of exportation goods, because of a low cost labour force, has got the risk to generate intern unbalanced problems, notably on a social plan. [...]

[...] Now, China is a big actor of international trade. The GDP (gross domestic product) was 2,688 billions dollars in 2006 (cf annexe 7). The growth rate is between 8 and these last years. This rate can be explained with the Chinese role in the world economy, in fact China is the first manufacturing in the international trade. The cheap labour force added to dramatic reduction of the cost of transport, premised to attract international companies which contributed with direct investments in the Chinese economic growth. [...]

[...] But their contribution in the Chinese economy is essential for this growth. Moreover, the Chinese privatisation accelerated the exchanges of products and services with foreign companies. Also, the Chinese cost of production is one of cheaper in the world. This trumps premise to maintain an important place in the market of exchanges of goods manufacturing. Without the international trade, the China couldn't increase its economy and take a place in the international market. The China became a terrible economic machine. [...]