Transcript 国际贸易理论与政策英文课件

International Trade
Theory and Policy
School of Economics, Yunnan University
Zhang Jianhua and Zhang Lin
Chap. 1 Introduction

One. Course Outline

Basic theory in Economics ( Analysis of commodity and
factor mobility in open Macro economy by tools
Microeconomics

Contents:
1.
Pure Theory in International Trade ( Reason and Influence of
International Trade)
2.
Policy of International Trade （Policies aiming at limiting
imports while encouraging exports）
3.
Institutions for International Trade（WTO Institutions ）
Two Basic Concepts

balance of trade
1.
Trade Surplus（Exports＞Imports，Favorable Balance of
Trade）
2004、2005年
中国的贸易收支
Trade Deficit （Exports＜Imports，Unfavorable
Balance
2.
of Trade）

Trade Balance （Exports ＝ Imports）
2005年中国主要进出口商品
Trade Structure
1.
Commodity Structure
2.
Geographical Structure

Dependency of Trade
3.
2004年中国对外贸易依存度
接近70%
Chap. 3 Comparative Cost and
Classical Trade Theorem
 In this chapter, we introduce theorem of international trade.
We start such introduction looking at causes of
international trade and its influences in the economy ( in
Chap 3, 4, 5 and 6), then we will analyze the influences of
economics in trade.
One, Theory of Absolute Cost
Theory of absolute cost
It is a theoretical explanation to the cause of international
trade
Introduced by Adam Smith in his “ Wealth of Nations”
Graph of Absolute Cost
Unit Cost Calculated in terms of labor
UK
Portugal
Carpet
4
6
Wine
8
3
Each country produces
goods absolutely low in
cost, in exchange for
other countries’ goods
absolutely low in cost
Trade based
on division
of labor
Reason of trade is because of
differences in absolute cost
Could
countries
have
trade
without
absolute
difference
s in cost?
Chap 3. 2. Comparative Cost
 David Ricardo，1817
 Background
谷
物
法
小
麦
价
格
上
涨
Cultivation of wheat expands,
land of grass shrinks, and
price of wool goes up
Labor is more expansive
Food expend increases, end
goods expend decreases
Revenge from other countries,
export of end products
decrease
损
害
了
资
产
阶
级
的
利
益
要
求
自
由
贸
易
Case of Ricardian Model
Assumptions：
Two nations, two products, one factor, fixed productivity, sufficient
employment, perfect competition, non-mobility of factor, barter, no
technological improvement, no transportation cost
Unit Cost Calculated in terms of labor
Britain
Portugal
Carpet
4
6
Wine
8
10
The absolute costs of both products in Britain is lower than
that in Portugal, why is there still trade between these two
countries
A necessary condition of international
trade: Comparative cost difference
A sufficient condition of international trade:
international exchange rate is between
domestic exchange rates in both countries.
There is benefit
from trade
Limitation：Why there is
comparative cost
？
Chap3. 3. Classical trade model
based on comparative cost
Used to explain：Reasons and influences of trade ( Price,
Production, Consumption and Welfare.
1, Analysis Tools
Y
1) Production
Possibility Curve
The maximum
production when
factors are fully
employed.
A（0，100）
C（X1，Y1）
O
B（100，0）
X
Property of Production Possibility Curve
Slope of PPC is equal to marginal opportunity cost
Y
5
A
B
4
O
The cost of
giving up
one benefit
for getting
another
3
4
X
Maximum cost may not be optimum production. We have to introduce
indifference curve in order to get optimum production.
2, Indifference Curve
The different products combination that can bring same
satisfaction to consumers.
Y
UA=UB
A（10，40）
B（25，15）
Property of Indifference
Curve:
•There are many
indifference curve
•Further from origin means
more utility level
•Never cross with each
other
O
X
•Concave
•Negative Slope
The combination of PPC and Indifference Curve:
Equilibrium( Optimum ) Production and
Consumption
Y
U2
U1 U0
Maximum
production, but
utility less than E
C
A
ineffective
O
Impossible
B
E
Equilibrium point：
Maximum production,
maximum utility
X
3, Exchange Rate ( Comparative price and
Trade condition
Y
★The exchange
rate is equal to the
slope of the line
1X = 2Y
D
C
3X = 3Y
B
O
A
1X = 1Y
E
X
★The key of
exchange rate line is
its slope, not the
position. For
example, AB and DE
is in different
position but has
same slope
二、贸易前均衡
开展国际贸易前，一国国内的生产和消费状况
Y
国内均衡时，生产可能性曲线与交换比率线重合，实现完全专业化生产
T
B
交换比率线
交换比率为1X = 2Y
X产量扩大
O
A
生产可能性曲线
边际机会成本为1X = 1Y
X
X价格下跌，比如：
1X = 1.5Y
根据生产可能性曲线的斜率
判断一国的比较优势
Y
B
1X = 1Y
相对于B国而言，
X成本更低
X
O
A
A 国
Y
B1
O
1X = 3Y
相对于A国而
言，X成本更高，
Y成本更低
X
A1
B 国
Three, Classical Trade Model ( One
Factor )
Y
Y
1X = 3Y
T
C
National A
A
National B
T
O
1X = 1Y
B
X O
X
D
Price of X falls in international market, and Price of Y also falls,
finally reaches an equilibrium price, say, T(1X=2Y)
X in nation B Production 0,
consumption OX1( Imports)
Influence of International Trade
Y
T
Consumption:
consumption
combination is in higherposition indifference
curve, better trade off
Y
Y in nation
C
Production OC,
Consumption OY1, surplus
Y1C
A
J
Y0
Y1
U1
E
M
F
U1
U0
U0
T
O
X0
B
Price: X ( more comparative
advantage ) raised
Production：Production of X
expanded ( Perfect
specialization )
X
O
X
X1 D
X in Nation A:
Production OB, Consumption OX0, Surplus
X0B( Export )
Y in Nation A:
Production: 0, Consumption OY0 ( imports)
Chap. 4, Mutual Demands Theory
Used to explain how exchange rate is fixed,
and how it varies.
One, Terms of Trade
T =
Price Index of exports
PX
PM
Price Index of Imports
T
：Improvement of trade condition: each unit of export
can exchange for more imports
T
：Deterioration of trade condition: each unit of export
exchanges for less imports
Changes in Terms of Trade
Y
T3
Y3
Y
T0
T1
T2
T2
T1
T3
Y2
Y0
Y1
T0
Y0
O
X0
Improvement of Trade
Condition in A
X
O
X
X0 X1
X2
X3
Improvement of Trade
Condition in B
Offer Curve
T2
Y
U2 G
U1
Offer
Curve
U0
F
Y2
E
T1
L
A
M
B
T0
Y1
T0
N
C
T1
Y0
X
X2 X1
X0
O
T0：Export LA（= OX0），Import EL（= OY0）
T1： Ex MB（= OX1），Im FM（= OY1）
T2： EX NC（= OX2），Im GN（= OY2）
T2
X
Each point along offer
curve means the
equilibrium import
and export in certain
exchange rate
General Equilibrium in International Trade
Y
A1
T1
A
T
Y0
B
Y1
Equilibrium international
exchange rate
Improvement of trade condition for
（That of B fixed）
Offer Curve of A moves left
O
X1
X0
X
Exports decrease greatly, but
exchanged imports stay unchanged
Chap 5, Factor Endowment
 Used to solve problems left behind by Ricardo:
Reasons for comparative cost difference
 Put forward by Swedish Economists Heckscher
and Ohiler, so it is also call the Heckscher-Ohlin
model, or H-O model, also known as factor
endowment theory.
 It offers good explaining to international trade, so
still works as main stream theory in international
trade.
Chap5. 1. Heckscher-Ohlin Model
One, Assumptions
1. Two nations, two products, two factors ( L and K ), 2× 2×2 model.
2. Fixed Endowment, free mobility of factor domestically, non-mobility
internationally.
3.Same technical level between two nations ( Same production function,
same endowment for same products in two nations)
Two, Notions
Factor intensity
Factor abundance
三、 Heckscher-Ohlin
Theorem
Each country exports the good intensive in the country's abundant
factor, and imports the good intensive in the country’s scarce factor.
国
要
素
价
格
不
同
两
国
要
素
禀
赋
不
同
，
导
致
两
差要
异素
价
格
差
异
导
致
生
产
成
本
品生
在产
两成
国本
的差
价异
格导
差致
异同
种
产
的同
差种
异产
导品
致在
国不
际同
贸国
易家
发价
生格
品裕两
的度国
比的要
较差素
优异密
势形集
成度
了和
不要
同素
产丰
Trade influence and benefits
Production Possibility curve in case of two factors
Y
Y0
Due to diminishing substitution of factors, marginal
opportunity cost will increase, thus production possibility
curve is concave.
U
Its slope is the opportunity cost in point E.
E
Equilibrium in E means marginal opportunity
cost in E. Domestic equilibrium is equal to
domestic price ratio.
T
O
X0
X
equilibrium
Trade influences : 1) price
Domestic equilibrium pre trade. T is
domestic exchange rate
Y
After trade, the country
export X, and its
domestic supply of X
decreases, and price X
rises.
E
T
O
TT1
X
T1
A
Trade Influences 2) production
Since the international price of
X is higher than that of domestic,
production of X will increase,
therefore, production of Y must
decrease. Production
combination will move to S.
Y
E
Y0
S
Y1
O
X0
X1
T
X
T1
A
Since in S, the international
exchange rate is equal to
domestic marginal
opportunity cost, the
country’s production of X
will not increase. With the
increase of marginal
opportunity cost, there will
not be perfect specialization.
Trade Influences 3) Consumption
After trade, consumers
in the nation will be
able to consume at
international price T1,
as budget constraint
moves to U1,
consumption
combination moves to
C. U1 is higher than U0,
so consumers are
better off.
Y
C
U1
E
U0
S
O
T
X
A
T1
Equilibrium
Y：
OY1-OY2=Y1Y2：Im
Y
Y2
C
U1
E
U0
S
Y1
O
X：
OX1-OX2=X2X1：Ex
T
X
X2
X1
T1
Benefit from Trade
Trade makes a nation’s consumers better off, but have different
influences to producers.
PX
△HGP1：
The export producer’s
SX
Ex
surplus after trade.
F
G
P1
P0
Difference：P1GEP0
E
Trade will benefit export producers.
H
O
DX
Q0
Export Producers
QX
△HEP0：
The export producers’
surplus pre trade
Influence to import competitive producers
PY
△P0EK：
Producers’ surplus before
trade
SY
P0
P1
E
F
Difference：P0EFP1
Trade will harm the import
competitive producers
H
K
Im
O
DY
QY
△P1FK：
Producer’s surplus after
trade
Chap. 5. 2. An empirical study of H-O model

1, Leontif Paradox

According to the statistical analysis of Leontif, he found
out that U.S.A., which is a capital abundant country,
imports more captial-intensive products, while exports
more labor intensive goods. This is a paradox to H-O
model.

2, Explain the Paradox
1.
Inverse of resource intensity
2.
Trade barriers
3.
Human resource
4.
Natural Resources
H-O模型并没有错
Chap5.3., Expansion of H-O model
International trade affects price production and consumption, but
will it also affect the factor payoff and price? Basing on H-O model,
we solve problems of trade to income distribution.
Stolper-Samuelson Theorem
Factor Payoff= Price（P）×Marginal products of factors（MP）
W = P×MPL
R = P×MPK
Value of marginal
products （VMP）
Short term: Factor non-mobility
Because of non-mobility, trade will only affect price
X
上（出
涨 口
）产
价品
格
W = PX×MPL
W
increases
R = PX×MPK
R
increases
Y
下（进
跌 口
）产
价品
格
W = PY×MPL
R = PY×MPK
W
Decreases
R
De c r e a s e s
All export
producers’
payoffs
increase
All import
producers’
payoffs
decrease
Long term: Because factors are mobile, trade not
only affects price, but also the marginal products.
业资
的本
要密
素集
向型
出的
口进
行口
业竞
流争
动行
劳流进
动出口
多的竞
资争
本行
比业
资要出
本的口
多劳行
动业
比需
劳
动
相
对
稀
缺
，
价
格
提
高
资
本
相
对
过
剩
，
价
格
降
低
资各
本行
劳业
动投
比入
率更
提多
高资
本
，
/
劳
动
密
集
行
的
出
口
行
业
报
酬
提
高
劳
动
生
产
率
提
高
，
资
本
生
产
率
下
降
资劳
本动
的的
边边
际际
产产
品品
减增
少加
，
Continue
出
口
Payoff of the factor intensively
used by exporters will increase
W = PX×MPL
PX上涨，MPL增加
W 提 高
R = PX×MPK
PX上涨，MPK减少
R？
W = PY×MPL
PY下跌，MPL增加
W？
R = PY×MPK
PY下跌，MPK减少
R下降
行
业
进
口
竞
争
行
业
Payoff of the factor intensively
used by importers will decrease
Continue
Labor market is in equilibrium before trade
WX = WY，RX = RY
Factor market will also form equilibrium after trade
WX increases，WY also increases；
RX decreases，RY also decreases
In long term, after trade, Payoff of the factor
intensively used by exporters will increase, and
Payoff of the factor intensively used by importers
will decrease, this is try in any industry.
Factor price equalization theory
Explains the influence of trade among countries to the
factor price in two countries.
W提高
易
R 高 后
W降低
W 高
易
均 等
R降低
贸
R提高
后
R 低
B
A
国
贸
易
前
W低 贸
国
贸
易
前
Chap 6, New Trade Theory



Changes in international
Trade
Increase of Intra-industry Trade
Development of trade within
developed countries
Trade between
goods with similar
or same
endowments
H-O cannot explain
Amendments of
assumptions of H-O
model, develops to
new trade theory
General points of new trade theories
 Imperfect Competition
1.
Differentiated products (Intra-industry trade)
2.
Monopoly power ( price difference)
 Large – Scale Economy
1.
Internal ( enterprises)
2.
External ( Industry)
Intra-industry trade and crossindustry trade
Domestic
（Rich in Capital）
products
Foodstuff
Cross-industry
trade
Intra-industry
trade
Foreign
（Rich in labor ）
Trade due to external scale economy
One, in case of perfect competition
P
P，C
MC1
S1
AC1
P1
D1
O
Q1
Q
O
q1
Before trade, supply and demand （S1，D1）determine
equilibrium price （P1）, the MC and AC are MC1 and AC1.
q
Reason of trade is because of the price change due to external scale economy
Output from enterprises
stay unchanged
Enlarge of industry,
supply, supply
increases to S2
AC decreases
P
P，C
S1
MC1
S2
MC2
AC1
AC2
P1
P2
D1
O
Q1
Meanwhile, market price
falls, and trade happens
Q2
D2
Q
O
Foreign demands
increase, demand
curves moves
q1
q
International
price stays at P2
二、 Trade Equilibrium at external Scale
of economy
Y
Production curve of increasing return to scale: diminishing marginal
opportunity cost
H
Suppose the production scale of two nations
change, production combination moves to J and H,
trade according to same exchange rate (T1) before
trade
U U1
E1
E
O
Suppose other
conditions are same
for two nations,
equilibrium point is E
T
J
T1
T2
X
Suppose X and Y are two
products in same industry
Trade is due to the price advantage of X when
industry scale is expanded.
Trade due to Internal Scale of Economy:
Imperfect competitive market
P，C
P2 P1
AC2
No monopoly
profit
Due to scale of economy, average cost falls,
enterprises will trade
Demand curve and marginal income curve
move right, but slope is less( more
elasticity)
E
AC
D2
MC
D1
O
Q1
Suppose marginal cost
stay unchanged
Q2
MR1
Q
MR2
Price （P2） in short ter is
higher than average cost
（AC2）, enterprise have
monopoly profit
Scale of economy causes trade, which
consequently increase consumer
surplus( welfare improves), better
specialization
Long term
equilibrium
P，C
Short term
monopoly profit
New firm enter
Expansion of industry scale lower
average cost, and competition
eliminates monopoly profit.
P2
AC2
Demand of the
products decreases
P3
AC
MC
D2
D3
O
Q2
Q
Q3 MR2
MR3
Krugman Model

1.
2.
3.

Three relations
Relation of Quantity of producers and Average Cost: The
bigger the quantity of producers, the less a single
producer’s output, and AC is higher
Relation of Quantity of producers and price: The more the
producers, the more serious the competition, the lower the
price.
When price is higher than AC( has monopoly profit), other
producers will go into the industry, while in other cases,
when price is lower than AC( monopoly profit is negative),
producers will go out of the industry.
In graph, relation of quantity of producers and AC is CC
curve( in positive relationship),; Relation of Quantity of
producers and price is PP curve in the graph ( in negative
relationship). In long term, quantity of producers is
determined by the cross of two curves.
Continued
Equil
ibriu
m 均
衡
P，C
AC2
P1
CC
E
Loss, producers
go out, N
decreases
AC1
P2
PP
O
N1
N0
N2
N
Monopoly profit exists, new producers go in, N increases
Trade
Equilibrium
Scale of economy lower
the AC, has price
advantage, export
P，C
CC1
CC2
P1
E1
E2
P2
O
N1
N2
More competition means lower price
The lower AC
makes CC curve
moves right, new
producers go in, N
increases
Scale of economy
causes lower price,
bring with trade,
PP
improve consumer’s
welfare, make
N
producers specialized,
scale of economy
expands, and more
choices for
consumers.
Products life cycle model ( technical
transfer)
Ex
O
t
Im
USA：
UK
China：
Trade happens due to the technical
difference, explains intra-industry
trade in different time
Chap 7, Economic growth and
international trade
Solve problems of the influence of economic
variation to international trade
Resource of growth
Increase of factors and
technical improvements
Results of growth
Increase of GDP
Y
A1
A
O
B
B1
X
Balanced growth and unbalanced growth
import replacing growth
Y
Y
Same Slope
F
export expansion
growth
A1
C
A
E1
A
E
O
B
Balanced Growth
B1
X
O
B G
Unbalanced growth
D X
Trade volume does not affect international exchange rate ( Trade condition )
Economic growth and trade
Trade condition stay unchanged, import
and export change in same ratio
Growth and trade of small country
Y
C
Y
L
U1
M
L
U1
N
C
F
A
U0
A
F
T
H
H
B D
IRG
T
N
M
G
O
U0
X
O
G
T
B
EEG
T D
X
RybcZynski Theorem
The scale of decrease of
X’s cost is larger than that
of Y, so production of X will
increase till equal to
marginal opportunity cost
( slope of T ), output of Y is
absolutely lower.
Y
C
A
Y1
Y2
O
X1
B
T
X2
D
X
T
Growth and trade for Large Country
大国增长与贸易
Import replacing growth
Y
C
Welfare improves, HJ
＞GF, due to
international market
price of Y falls, trade
condition improves,
the certain amount of
the nation’s products
could exchange for
more import goods.
H
U1
U2
A
GJ
K
U0
F
E
T2
T1
T0
O
B D
X
Export expansion growth
Y
C
A
U2
H
U1
G
Welfare improves. JK>FE,
more export products are
needed in exchange for a
certain amount of import goods,
trade condition deteriorates.
K
J
U0
F
E
T0
O
B
D
T2
X
Export of X increase for large country, which causes
international market price of X falls, trade condition changes.
T1
Immiserizing growth
Y
U0
C
U1
A
T1
O
B
D
T
X
Chap 8, Protectionism and Policies
When free trade can make two countries better
off, why should there be trade protection?
One, Policies of the mercantilism
只
有
金
银
才
是
财
富
增口是任
加赚有何
本取限国
国别的家
财国，金
富金只银
银有储
才靠量
能出都
支本同
出国时
本购要
国买限
金别制
银国或
商禁
品止
限制或禁止进口，
同时鼓励出口
Two, Protection theory of List
There should be different trade policies
in different stages of economic development.
Trade protectionism of Keynesian
Aggregate Demand:
C＋I＋G＋X
消
费
投
资
政
府
支
出
出
口
＝
Aggregate Supply：
C＋S＋T＋M
消
费
储
蓄
政
府
收
入
进
口
Equation of Aggregate Demands
Y ＝ C ＋ I ＋ G ＋（X－M）
Net Export
Trade Multiplier
Consumption
Function：
Y＝Ca＋bY＋I＋G＋（X－M）
C＝Ca＋bY
自
发
消
费
不考虑Ca、I和G
引
致
消
费
Y＝bY＋（X－M）
Y－bY＝（X－M）
MPC X Income
Let
1
1－b
Y＝
＝k，Y＝k（X－M）
1
（X－M）
1－b
In order to increase Y, needs to increase (X—M), or the
exports, and decrease imports, then Y is increased by
K times.
New Trade protectionism
Strategic Trade policy
Prisoner’s
dilemma
B
A
confess
Not confess
confess
Not confess
5，5
1，10
10，1
0，0
Nash
equilibrium
Strategic Trade policies
Air bus
Produce Not produce
Boing
Produce
－5，－5
100，0
Not produce
0，100
0，0
Air bus
produce Not Produce
Boing
Produce
－5，20
100，0
Not Produce
0，125
0，0
国政
企府
业可
获以
得采
战取
略措
性施
优帮
势助
本
Other reasons for trade protection

Protect young industries
1.
Protect industries whose average cost not higher than that of
international market price in future
2.
Cost should be lower than the income of the industry in future
3.
Industry must be free join an exit

Promote capital formation and industry multilateral

Improve trade conditions and international balance of
payments

Increase employment and sustain high salary

Promote economic development of developing countries.
Chap 9, Trade management theories
and policies
Limited
import
Tariff
Quantity limitations
Price limitations
Non-tariff
Barriers
Purchase control
Financial control
TBT
Export credit
Improve
export
National Guarantee of export credit
Export subsidy
Dumping
Tariff
Basic Ideas（P.113~116）
ERP
ERP＝
V ’ －V
V
V ’ ＝（Final price of exports +Duty)– price of Imported material
V＝ price of foreign end products—foreign material price
Under a certain nominal tariff rate, the lower the nominal tariff rate
attached to raw material and medium goods, the more the
protection level to the end products
Economic effects of tariff
Solve problems of the influences on import price,
and welfare of import producer, consumer and
government.
1.Partial Equilibrium of small nation
③loss of consumer is a+b+c+d
④ producer surplus is increased a
⑤government tariff income is c
PY
S
A
Loss：a+b+c+d（Consumer）
Benefit：a（producer）+c（government）
⑥net befefit ：－（b+d）
H
Pt
a
Pw
B
O
e
b
G
c
d
②imports decrease after tax
F
C
①price increase
D
Q1
Q3
Q4
Q2
QY
Import before tax
Price of imports after tax
Price in international
market
2.Partial equilibrium analysis of
large countries
Pt1：Domestic decreases after tax
PY
S
t
Pt
Pt1
Pw
PW1
a
b
c
f
d
D
O
Q1
Q3
Q4
Q4
QY
PW1：Imports of large countries decreases, international market price falls
Influence of tariff to some American products
( in Million dollars)
Tariff（%） Consumer Cost Tariff Income
Product
R
s
W
s
t
u b b e
h o e
o m e
h o e
i l
r
s
n
s
e
cases
Leather
g l o v e s
C h i n a
Pottery
b
a
g
s
Artificial
j e w l r y
Bicycle
Producer
Income
Net cost
41.9
10.0
19.1
16.3
15.3
14.2
9.4
12.5
-272.2
-325.1
-90.0
-186.3
-28.1
-43.8
-34.7
-134.4
188.4
253.4
77.6
139.8
15.0
33.3
33.7
103.4
44.1
54.6
10.0
36.4
10.8
9.2
0.8
25.7
39.7
17.1
2.4
10.1
2.2
1.3
0.2
5.3
9.9
12.9
11.0
-86.7
-185.8
-38.1
59.5
99.0
26.4
20.7
77.2
10.0
6.5
9.6
1.7
Non trade barreiers
Global Quota
数
量
限
制
Import
Quota
Absolute
Quota
Tariff
Quota
Import
license
Voluntary
export restraint
Regional Quota
Importer Quota
Economic effects of import quota
P
S
PQ
a
b
c
d
PW
D
O Q1
Q3
Q4
Q2
Q
Situation of Import Quota
Chinese products that carry with quota
中国目前实施配额管理的产品
VER
The voluntary export limitation
of Chinese products
Policies aiming at improving export
Export
Subsidy
出
口
补
贴
世界各国的出口补贴
Direct
Subsidy
Indirect
subsidy
出口退税
口退税办法
price discrimination 垄断企业
Dumping
Economic
Effects
Domestic price is
higher than price
in foreign
markets
Foreign markets has
more demand elasticity
than domestic market
P,C
PD
PF
MC
MC
DF
MRF
Q
DD MRD
Q
Domestic
market
O
Foreign
markets
China and Anti-dumping
Chinese-made television sets
Latest cases
Issues of China’s role as market economy
China’s implement of anti-dumping
Revolution of China’s foreign trade
《十一五规划纲要》
Chap 10, Economic Integration,
theory and practice
Forms of economic integration Definition
Preferential Tariff Area
Free Trade Area
Customs union
Common Markets
Economic Union
Perfectly economic integration ：？
of
WTO
Theory of customs union
Trade
creation
Once the zollverein is set up, as tariff is cancelled, trade which
was formerly banned by tariff will generateAfter the cancellation of tariff,
foreign products are imported,
domestic supply increase to S1
P
Consumer surplus
increases P0EFP1
S
E
P0
P1
S1
Producers surplus loses
P0EGP1
F
Net trade off
increase EFG
G
Imports
D
O
Q2
Q0
Q1
Q
Trade diversion
After integration, trade with non-members
will be transferred to member countries.
Producer surplus decreases h
P
S
PA
PC+T
PB
Consumer surplus after
integration increases h+c+a+d
Tariff loss a+b
h
c
a
d
Net benefit ：（c＋d）－b
b
PC
D
Q3Q4：Imports of B
O
Q3 Q1
Q2 Q4
Q
Q1Q2：Imports before
integration
Economic Integration in
Europe
Economic Integration in Europe and
China-Euro Economic Relationship
Economic Integration
in Europe
China-Euro Economic
Relationship
China’s participation into International
Regional Economic Integration
上海合作组织
CEPA
APEC
Construction of China-ASEAN Free
Trade Area
ASEAN
CAFTA
Yunnan and CAFTA
云南天然是中心
Free Trade Area between China and
other countries
China and Chile：2004年12月举行第一轮谈判。05年9月
称取得重大突破。11月18日签署FTA协定，从2006年7月1日
开始，全面启动货物贸易的关税减让进程。其中，占两国税
目总数97%的产品将于10年内分阶段降为零关税。
04年6月，同意启动中国与南部非洲关税同盟（SACU，南
非、纳米比亚、博茨瓦纳、莱索托、斯威士兰）FTA谈判。
China and Gulf countries ：沙特阿拉伯、阿联酋、科威特、
阿曼、塔卡尔和巴林。05年4月第一轮谈判 。计划在06年签
署FTA
China and Pakistan ：05年2月同意尽快在特惠贸易协议下
确定零关税产品。4月，两国同意自2006年1月1日起开始降
低双方贸易产品关税，并在2008年1月1日前消除2246种贸易
产品关税。8月，宣布有望一年内结束FTA谈判
China and Korea：05年3月就“启动中韩FTA可行性和政策
提案民间共同研究”达成协议
China and India：05年4月启动中印区域贸易安排可行性研
究
China and Iceland：05年5月同意就两国间签署自由贸易协
议进行可行性研究。
China and Australia ：05年5月正式启动谈判。11月，第三
轮结束，完成第一阶段
China and New Zealand ：04年12月启动谈判，05年7月第
四轮。12月1日称第五轮取得进展。温家宝06年4月10日在新
西兰访问期间表示，中国和新西兰自由贸易协定（FTA）将
在两年内达成，这将是中国与发达国家签订的第一个自贸协
定。
Chap. 12, WTO
Introduction （p.184~194）
“Doha Round”
China and WTO