Non-state Educational Institution
Chelyabinsk Institute of Economics and Law
after M.V. Ladoshin
Faculty of Management, Finance and Law
THE THEORETICAL BASIS FOR THE INTERNATIONAL TRADE. THE MODERN TRENDS OF THE INTERNATIONAL TRADE DEVELOPMENT
TERM PAPER
Performed by: Kichutkina N. N.
& # 1052 ; & # 1069 ;
-305
Checked by: Salyakhova G. Kh.
Chelyabinsk
2007
Introduction
The traditional and most advanced signifier of the international economic dealingss is the foreign trade. On a portion of trade it is necessary about 80 % of all volume of the international economic dealingss.
Theories of the international trade get downing from the English classical political economic system, have passed a figure of phases together with the development of the universe economic scientific discipline.
The chosen subject is existent as theories of the international trade benefit since they help to explicate what competitory production it is possible to do in a peculiar state or part, where the company can form effectual industry of given merchandises and whether the province will interfere with swap between the states.
The basicintent
of this term paper is analyzing both theories uncovering the rules of optimal engagement of national economic systems in the international swap, and nonsubjective Torahs of development of the universe trade, including Russia & # 8217 ; s foreign trade.
The primary ends of this term paper are:
1. To see what international specialisation is the most effectual and good for the separate states and parts.
2. To specify the basic waies of trade good watercourses between the states and factors of fight of separate states in the universe market ;
3. To analyze the function of Russia in the universe trade.
Area of research of the international economic dealingss
is theoretical jobs of forming foreing trade in Russia and abroad.Object of research
is the external universe.
The theoretical and methodological footing of the term paper are the of laminitiss of the economic scientific discipline, modern domestic and foreign scientists. However this subject is widely discussed in the periodic economic editions, such as & # 171 ; the Russian External Economic Bulletin & # 187 ; , “ Expert ” .
The practical importance of the term paper is s that its consequences can be used in the educational procedure while analyzing economic subjects.
The term paper consists of the debut, three chapters, the decision and the list of the literature. In the debut
the urgency of the chosen subject is proved, the intent, jobs, country and object of the research is defined, scientific freshness, theoretical and practical values of work are considered.
In chapterI
& # 171 ; Theories of the international trade & # 187 ; classical and modern theories of the universe trade are considered ; in chapter II
the construct of the universe trade, and besides the jurisprudence of development of the international trade and the basic waies of the foreign trade watercourses between the states ; in chapter III
the function of Russia in the international trade has been analysed. In the decision of
the term paper the basic consequences of the carried out researches are stated, decisions and practical recommendations are made.
Active engagement of the states in the foreign trade allows them to utilize resources available in the state more efficaciously, to fall in the universe accomplishments of scientific discipline and engineering.
Chapter I. Theories of the international trade
1.1
Classical theories of the international trade
A.Smith & # 8217 ; s Principle of absolute advantage
The policy of free-trade has been developed by English economic expert A.Smith. He has created the new theory of the universe trade. & # 1053 ; & # 1077 ; considered, that it is necessary to import the goods from the state where costs perfectly it is less, and to export that goods, which costs below exporters.
A.Smith ‘s attack has received the name & # 171 ; the Principle of absolute advantage & # 187 ; .
Each state should specialise on industry of the goods which average costs it is less, than mean costs in other states.
Smith has proved, that free trade will be favorable to its all participants.
If a state makes some goods more on a unit of cost than its rivals do, it has the absolute advantage in fabricating these goods. It is favorable for the state & # 8211 ; maker to export these goods, and it is favorable for other states to purchase them since it would be more expensive to bring forth them.
D.Rikardo & # 8217 ; s Principle
of comparative advantage
D.Rikardo has formulated the theory of comparative costs.
He has defined a monetary value zone inside of which the exchange will be favorable to everyone. D.Rikardo has shown, that the international exchange is possible and desirable in involvements of all states.
An economic theory which claims that all states will be better off if each of them dressed ores on making the things it does best.
So, most states have one thing they do better than anyone else. By concentrating on one activity they can import the things they produce less good.
Foreign trade should be free.
Theory of Hecksher – Olin
The new theoretical account has been created by the Swedish economic experts Ales Hecksher and Bertel Olin.
Theory has received the name of the theory of relative factors
.
The states aspire to export that goods in which production they have otiose factors of industry. And to import the goods in which scarce factors for the state are used.
They considered, that it is possible to bring on the states to development of industry and export of that production where otiose and inexpensive factors of industry are used.
Leontiev & # 8217 ; s Paradox
Vasily Leontiev an American economic expert. He investigated construction of export and import of the USA.
He has found out, that in export & # 1090 ; & # 1088 ; & # 1091 ; & # 1076 ; & # 1086 ; & # 1074 ; & # 1086 ; & # 1077 ; & # 1087 ; & # 1086 ; & # 1090 ; & # 1088 ; & # 1077 ; & # 1073 ; & # 1083 ; & # 1077 ; & # 1085 ; & # 1080 ; & # 1077 ; goods prevailed, and in import prevailed capital-intensive. The theory has received the name & # 171 ; Leontiev & # 8217 ; s paradox & # 187 ; .
V. Leontiev has assumed, that greater productiveness of the American work is connected with higher making of the American workers.
So, V. Leontiev has found out, that the subdivisions being successful exporters, possess higher labour input. And other subdivisions clashing with a competition of the import goods, non so are successful.
1.2 Modern theories of the international trade
The theory of the technological interruption
The theory of the technological interruption is the modern theory of the universe trade. The theory was developed by the American economic experts G.Hafbauer, R.Vernon.
If in subdivision technological inventions are applied, state will have comparative advantages. If the state makes the goods with smaller costs, it will have extra net income in the universe market. Therefore exporters are interested in addition in industry of the given goods and its realisation in the universe market. While break exists, it renders positive influence on export of goods in which manufacture new engineerings are used.
The theory of the merchandise life rhythm
R.Vernon, C.Kindelberger, L.Uels have developed the theory of the merchandise life rhythm. This theory explains development of the universe trade by finished goods on the footing of phases of its life in the market.
Development of the universe trade by finished articles depends on phases of a life.
The merchandise life rhythm is a familiar one in selling. A merchandise is launched, developed, goes through a period of growing, enters adulthood, diminutions, and finally dies.
At the first phase there is a development of new production. Industry of a new merchandise has small-scale character, demands high making of workers and dressed ores in the state of an invention.
At the 2nd phase of growing
demand for a merchandise grows besides its industry extends. The merchandise becomes more standardised, the competition between makers additions and export extends.
The large-lot production is typical of a adulthood.
The merchandise life rhythm passes in a phase of diminution,
demand is reduced.
The theory of the merchandise life rhythm is realistic plenty reflects development of many subdivisions. However is non a cosmopolitan account of inclinations of development of the international trade.
Michael Porter & # 8217 ; s the theory of competitory advantage
In 2-nd half XX centuries in the universe trade have occured alterations. In trade good construction of the universe trade, sale of finished goods began to predominate. In 1990 the American economic expert M.Porter has published research & # 171 ; Competitive advantages of the states & # 187 ; .
M.Porter has created the original theory of competitory advantage of the state. The cardinal topographic point in his construct is occupied with thought of a national diamond.
Determinants of competitory advantage
is features of the most important beginnings of competitory advantage of the companies of treating industries.
1. The Factor of a status
2. Conditionss of the internal demand, doing a graduated table consequence
3. Presence of next and back uping subdivisions
Therefore, the theory of a competition connects inclusion of the state and separate house in the universe trade with conditions of a competition.
The Theory of a scale consequence
P.Krjugman, R.Drize, G.Hafbauer have developed the theory of a scale consequence.
At the certain engineering and the organisation of industry long-run norm costs are reduced in procedure of addition in end product, i.e. there is an economic system caused by mass production.
The consequence of mass production was realized, necessary capacious adequate market. International trade allows to spread out trade good markets. It is offered to consumers to more production and lower monetary values.
The theory of a scale consequence is non cosmopolitan.
So, nowadays the advantages in the competition are determined neither by the size of the state, nor by rich natural resources or by the power of the fiscal capital. The determiners are the educational degree and volume of the cognition accumulated by a society.
Chapter II. The international trade at the present phase of development
2.1 Concept and Torahs of development of the international trade
Footing of economic dealingss in the universe economic system is international trade.
International trade
is sphere of the international trade good and pecuniary dealingss on an exchange of merchandises of work ( the goods and services ) between Sellerss and purchasers of the different states & # 187 ; .
International trade includes export and import of the goods. Trading balance
is para between export and import
The structural displacements happening in economic system of the states under influence of a scientific and technological revolution, specialisation and cooperation of industrial production, strengthen interaction of national economic system.
It promotes activization of the international trade. International trade grows faster production. Foreign trade became the powerful factor of economic growing.
International trade influences economic system of each state.
International trade is reciprocally advantageous, as behaviors to specialisation and an exchange. Benefit is taken from a difference in costs in the different states. It allows to have economic system from graduated table.
International trade is characterized by three basic parametric quantities are
: trade good circulation, trade good construction and geographical construction.
The term“ foreign trade ”
is understood as trade between the states, dwelling of export and import of the goods and services.
Kinds of the foreign trade are:
1. sale of finished goods ;
2. sale of machines and the equipment ;
3. sale of natural stuff ;
4. sale of services.
The parametric quantities reflecting engagement of the state in the international trade, are quota of export and of import.
Engagement of the state in the international trade is caused by a degree of its economic development, the sizes of district, a population, jobs and the intents of economic policy.
Law of the universe trade development
World trade grows really rapidly. Export portions of the states addition. Densities of ready industrial, high engineering production grows. The export monetary values of machines and the equipment rapidly grow.
For an appraisal of advantage of the international trade for the state, economic experts usean index of conditions of trade.
The of import inclination in the international exchange is the addition in the universe market of services, particularly tourer, conveyance, fiscal. Leaderships of this market are the advanced states.
2.2 Structure and the basic trade good watercourses of the international trade at the present phase of development
Sing construction of the universe trade in the beginning of Twenty-one century, it is possible to see indispensable alterations. The portion of the trade of a fabrication industry has increased with 1/3 up to 3/4, on the groceries and natural stuff it is necessary about 1/5 trade good circulations. More than 40 % of all modern universe export are machines and the equipment.
The trade good construction of the universe trade alterations under influence of a scientific and technological revolution, a deepening of the internation
al division of labor. Now the portion of such sorts of production, as production of a fabrication industry, machines, the equipment, chemical production, the high engineering goods particularly rapidly grows.
One of rapidly developing domains of the international trade is trade in chemical production.
Consumption of natural stuff and power resources has increased. However rates of growing of trade in natural stuff perceptibly lag behind the general rates of growing of the universe trade.
Active trade in machines and the equipment has generated a figure of new services, such as technology, leasing, confer withing, information services.
Export of the electrotechnical and electronic equipment rapidly grows. On its portion it is necessary more than 25 % of all export of machine-technical production.
The trade good construction of the international trade testifies to a degree of economic development of the province.
In 2005, harmonizing to WTO, there was a growing of the international trade good circulation more than on 13 % at cost up to a degree of 10,4 bln. dollars.
The of import function in trade good construction of the universe trade is played oil and other fuel goods. The portion of fuel natural stuff has increased up to 16 % . For illustration, Norway
is the 3rd in the universe the exporter of oil and gas. The Incorporated Arab Emirates
the 4th in the universe exporters of oil and gas.
The basic portion in the international trade in the goods is occupied with the advanced states with market economic system. The leader of the universe trade by the goods are the USA, on 2-nd topographic point the Germany, on 3-rd topographic point the Japan.
The taking states & # 8211 ; exporters of the universe are
: 1 topographic point – Germany ( 10 % of the universe export ) ; 2 topographic point – USA ( 9,7 % ) and farther topographic points are distributed as follows: Japan ( 6,3 % ) ; China ( 5,9 % ) ; France, the Great Britain ( 4,1 % ) ; Netherlands ( 3,9 % ) ; on 11-th topographic point Hong Kong, and Russia on 17-th topographic point ( 1,8 % ) .
The taking states & # 8211 ; importers
are: the USA – 16,8 % ( 1 topographic point ) ; Germany & # 8211 ; 7,7 % ( 2 ) ; the Great Britain & # 8211 ; 5,3 % ( 3 ) ; Japan & # 8211 ; 4,9 % ( 7 ) ; and Russia in the given list occupies 23 topographic point & # 8211 ; 1 % .
Harmonizing to WTO, the largest maker, the exporter and the importer of an industrial end product remains the USA. On their portion 14 % of the universe export and 19 % of import are necessary. The USA is the universe ‘s largest pure importer of production of mechanical technology.
The inclination of the international trade is the addition in volumes of trade between less developed states.
The portion of the states of the Western Europe in the universe export made 32 % . On EU 85 % of export and 77 % of import of the industrial goods are necessary.
The beginning of Twenty-one century was characterized by important displacements in the external economic domain of Spain. In 2004 on its portion was necessary 4,1 % of the universe trade, including 1,9 % on export and 2,2 % on import.
The trade good construction of the Russian export to last old ages keeps the natural orientation. Predominating places occupy the fuel and energy goods, black and nonferrous metals and chemical fertilisers.
It is necessary to observe, that on construction of the international trade the greatest influence render a scientific and technological revolution, a deepening of the international division of labor. In the universe trade growing of chemical production, a fabrication industry, a machine technology industry, power resources is observed, that is the stipulation for development of new services.
Chapter III. Foreign trade of the Russian Federation
3.1 Features of Russia & # 8217 ; s trade at the present phase
The Russian economic system has crossed a threshold of a new millenium in a phase of steady economic rise.
Harmonizing to imposts statistics, the foreign trade turnover of Russia in January – June, 2006 has made 199,7 billion dollars. It has increased for 31,8 % , including the states CIS & # 8211 ; 28,7 billion dollars.
The volume of the universe trade has increased in January & # 8211 ; June, 2006. It is connected to growing of export bringings of energy bearers and with growing of import addition of internal demand.
It is necessary to observe, that, despite of fluctuations of volumes of import and export, invariable positive remains to equilibrate of the international trade.
The active balance of merchandising balance of Russia has made 86,3 billion dollars and has increased for 19,9 billion dollars. The factor of a covering of import by export has made 252 % . Thus the balance has basically exceeded import ( in 1,5 times ) .
The high degree of balance has provided updating currency militias of the state. Harmonizing to Bank of Russia, the international modesty actives of the state for June, 1, 2006 have made 250,6 billion dollars and have increased in comparing with 2005 in 1,7 times.
In the foreign trade of Russia a particular topographic point as the largest economic spouse occupies the European Union. On its portion in January – June, 2006 it was necessary 52,1 % of the Russian trade good circulation.
The basic trading spouses in a circulation of Russia were Germany & # 8211 ; 10 % , Netherlands & # 8211 ; 8,9 % , Italy – 7,5 % , Ukraine & # 8211 ; 5,4 % , China & # 8211 ; 5,9 % , Turkey & # 8211 ; 3,8 % , the USA – 3,4 % , France -3 % , Japan -2,6 % .
The foreign trade turnover of Russia in I half-year 2006 has made 213,5 billion dollars, including export & # 8211 ; 144,1 and import & # 8211 ; 69,5 billion dollars.
Development of export
The Russian export in January & # 8211 ; June, 2006 against January & # 8211 ; June, 2005 has increased for 31,3 % . Thus entire export has made 143 billion dollars. 84,1 % of a addition of export is received due to growing of contract monetary values.
Physical volumes of export have increased by 5,0 % . The mean export monetary values have increased for 25,1 % .
The relation of trade good export to gross national merchandise of Russia under the mid-annual exchange rate of the Central Bank of the Russian Federation has made 41,5 % .
The export quota ( a portion of export in industry ) has increased on oil, mineral oil, coal and has decreased on natural gas, a paper newspaper, car and to lorries.
The basic trading spouses of Russia in export were Netherlands & # 8211 ; 11,6 % ( in 2005 -10,4 % ) , Germany & # 8211 ; 8,6 ( 8,8 ) , Italy & # 8211 ; 8,8 ( 8 ) , China & # 8211 ; 5,1 ( 5,3 ) , Turkey & # 8211 ; 4,6 ( 4,4 ) , Poland-3,5 ( 3,4 ) , the USA & # 8211 ; 2,9 % ( 2,8 % ) .
The construction of the basic export places in comparing with the last twelvemonth practically has non changed and includes the major energy bearers ( oil, gas, mineral oil ) , basal metals, gems, a unit of ammunition wood.
In a fuel and energy composite
cost the volume of export of fuel and energy resources has increased for 44,1 % .
The universe monetary values for oil URALS in June, 2006 have made 469,3 dollars for one ton.
In a metallurgical composite
cost the volume of export of production in the accounting period has increased for 3,3 % .
In a wood and pulp-and-paper composite
in January – June, 2006 the standard point of wood and pulp-and-paper production has increased for 11,8 % .
In a chemical and petrochemical composite
cost the volume of export of the basic goods in 2006 has increased for 15,4 % .
In a machine-building composite
it has been put on a foreign market of machines, the equipment on 6889,2 million dollars.
Development of import
The Russian import January – June, 2006 has made 56,7 billion dollars and has increased for 33,2 % .The basic merchandising spouses of Russia in import were Germany & # 8211 ; 13,4 % ( 2005 & # 8211 ; 13,4 % ) , Ukraine & # 8211 ; 6,6 % ( 8,3 ) , China & # 8211 ; 7,9 % ( 6,2 ) , Japan & # 8211 ; 5,7 % ( 5,5 ) , the USA & # 8211 ; 4,6 ( 4,9 ) , Italy & # 8211 ; 4,1 % ( 4,3 ) , South Korea & # 8211 ; 5,7 % ( 3,2 ) , France & # 8211 ; 3,9 % ( 3,7 ) , the Great Britain -2,7 % ( 2,9 % ) .
Growth of import was provided due to increase in physical volumes of import. In the accounting period the physical volume of import has grown on 28,3 % . The addition in import volumes promoted enlargement of internal demand.
The addition in import volumes promoted enlargement of internal demand. The existent wage of one worker in June, 2006 has raised on 15,2 % , and a bend of retail trade on 13,7 % . In 2006 pecuniary incomes of the population have made 1417,8 billion rubles.
Real effectual strengthening of rouble to foreign currencies in 2006 on 8,4 % promoted import. In the accounting period import of machines, the equipment and vehicles has increased for 48,6 % and has made 26196,4 million dollars.
So, the analysis of growing of the universe trade of Russia has shown, that in export activity
the volume of export has increased due to contract monetary values.
In import activity
, on the contrary, in the accounting period of 85,1 % – due to physical volumes, and 14,9 % – due to a rise in monetary values. Truly the economic system of Russia has shown good rates of economic growing.
3.2 Russia & # 8217 ; s function in the international trade
Russia is one of the largest states in the universe. It possesses alone natural resources, big industrial, scientific and personnel potency.
Russia plays the of import function in a mineral and natural composite of the universe. From deepnesss of Russia 10 % of oil, 30 % – gas, 10 % – coal, 14 % – trade good Fe ore, 15 % & # 8211 ; colour and rare metals from all volume of minerals extracted are taken by the universe community.
On a portion of Russia 85 % of oil, 84 % & # 8211 ; a gas condensate and gas, 70 % & # 8211 ; coal, 66 % & # 8211 ; Fe ore, 53 % & # 8211 ; are necessary about to copper, 95 % & # 8211 ; nickel, 70 % & # 8211 ; bauxites from stocks of the CIS.
Russia is one of the universe ‘s largest proprietors of power resources. Harmonizing to the international economic organisations, Russia besides has strong competitory places in export black and nonferrous metallurgy, the wood and defensive industry, the machine industry, the chemical industry.
Positions of Russia in the international trade have a small improved.
Now the portion of Russia in universe export of goods makes 1,8 % ( 17 topographic point among the taking states & # 8211 ; exporters of the universe. In universe import of the goods the portion of Russia made 0,9 % ( 23 topographic point ) .
Under the foreign trade turnover Russia occupies 20 topographic point in the universe. The portion of gross national merchandise of Russia in the universe economic system in 10 times is less, than the USA, and in 5 times at that place is less than China. On entire sum of gross national merchandise Russia occupies 15 topographic point in the universe. On stocks of the atomic arm Russia occupies 1 topographic point in the universe ( 55 % ) .
Foreign trade remains the of import beginning of reception of the investing goods.
So, the domain of the foreign trade gives immense chances for going and developments of economic system, formation of the budget of the state, care of wellbeing of people.
Decision
Development and complication of the international trade has found contemplation in development of the theories explicating driving forces of this procedure. Traditional foreign trade theories are deficient for an account of a modern international exchange of the goods, but they are base in theoretical researches of the western scientists and explicate happening and an orientation of the universe trade by the goods.
In modern conditions it is possible to analyze differentiations in the international specialisation merely on the footing of set of all cardinal theoretical accounts of the international division of labor.
International trade influences economic system of each state. All that is made in the state goes on export, and in volume of ingestion the increasing function is played with import.
Theories uncovering rules of optimal engagement of national economic systems in the international swap and jurisprudence of the universe trade development, including the universe trade of Russia are investigated.
The term paper can be used in educational procedure at analyzing economic subjects.
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