Chapter 02
Development and Role
of International Trade
LOGO
Chapter 02 Development and Role
of International Trade
contents
§1 international trade & economic development
§2. international trade’s sustainable development
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§1 international trade &
economic development contents:
1.economic growth & economic development
2.foreign trade’s effects on economic development
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1.economic growth and economic development
(1) economic growth:
Generally it refers to the increase in production, emphasizing the increase in total economic output, usually measured by GDP / GNP, NI and its per capita.
(2) economic development:
It mainly refers to the structural changes of output and input and changes in general economic conditions with the emergence of the increase in output .
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2.foreign trade’s effects
on economic development
They are reflected in the following eight aspects:
(1) demand effect;
(2) resources effect;
(3) structure effect;
(4) chain effect;
(5) competitive effect;
(6) learning effect;
(7) scale effect;
(8) employment effect.
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(1) demand effect
effect of import demand:
Imports make up the national shortage of goods, stimulate consumers’ demands for these products to generate new demands, and thus stimulate domestic establishment and
development of new industries.
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effect of export demand:
Foreign countries’ demands for domestic goods stimulate the export sectors to increase domestic production volumes, improve product quality, and spur the economic growth of domestic industries.
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(2) resources effect
effect of resource import:
Importing resources can make up the shortage of resources, and solve their contradiction of resources shortage in the process of economic development.
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effect of resource export:
Due to foreign demands for domestic resources, the development of its resources make a
breakthrough in domestic market limitation, implement its allocation of resources more efficiently, and enjoy the benefits of international division of labor.
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(3) structure effect
The result of demand effect and resource effect’s common function is that the industrial structure of a country / region adjusts and optimizes. Some industries will be phased out, some other industries will quickly gain new development.
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