الاقتصاد الدولي - ملاحظات دراسية

International Economics - Study Notes

• Absolute Cost Theory (Adam Smith): Absolute cost is the true societal cost of producing a unit of a good, according to Adam Smith's theory. Production's sole factor is labor, according to this theory. If producing cotton in Kuwait requires 2 hours of labor and in Lebanon it takes 4, Lebanese cotton has a lower absolute cost.

• Comparative Cost Theory (David Ricardo): Ricardo's theory assumes full employment of labor. Labor is not the only production factor. The theory assumes complete mobility of labor within a country and also internationally. It also assumes that there are transportation costs between countries, and perfect competition.

• Heckscher-Ohlin Theory (Factor Endowments): This theory views production factors as abundant or scarce in absolute terms, not relative. Differences in production costs are due to factor endowments. A country specializes in and exports goods that utilize factors abundant within that country. If country A has 25 units of labor, 20 units of capital and country B 12 units of labor, 15 units of capital then country A is relatively richer in capital. A labor-abundant country specializes in exporting labor-intensive goods.

• Dynamic Technological Differences Theory: Dynamic variations in technology between countries are not a separate driver of international trade.

• Product Life Cycle Model: A new product generally requires highly skilled labor.

• Balance of Payments: This is a record of all international economic transactions between a country and the rest of the world. It includes two accounts: current and capital/financial. The balance of payments has a credit side (payments) and a debit side (receipts).

• Balance of Trade: Part of the balance of payments, it has imports and exports of goods and services.

• Current Account: Part of the balance of payments, it includes imports and exports of goods. Exports and imports of gold (non-monetary use) are included in the current account.

• Long-Term Capital Account: Part of the balance of payments, it includes loans/borrowing. Debts are recorded on the receiving country's credit side, and payments on the lending country's debit side.

• Foreign Exchange and Gold: Changes in foreign currency reserves and gold movements for monetary purposes are a part of the balance of payments.

• Unilateral Transfers: Government grants, compensation, and aid without monetary return are included in the balance of payments.

• Exchange Rate Appreciation/Depreciation: Appreciation of Libyan Dinar against US dollar from 2.80 to 3.5 USD/LD translates to an increase in Libyan Dinar value, and a decrease in dollar value.

• Exchange Rate Depreciation/Appreciation: A drop in the dollar/Libyan Dinar exchange rate from $1 = 0.35 LD to $1 = 0.30 LD shows a depreciation in the dollar and appreciation in the Libyan Dinar.

• Spot Exchange: Immediate exchange of currencies.

• Forward Exchange: Exchange of currencies at a future date, agreed upon today.

• Arbitrage: Buying a currency in a market where it is high-priced and immediately selling it in a market where it is low-priced to profit from price differentials.

• Fixed Exchange Rate Theory: The equilibrium exchange rate is the rate that balances imports and exports.

• Exchange Rate and Prices: A rise in a country's currency value leads to higher import prices, but lower export prices for foreigners. A fall in a currency value leads to lower export prices for foreigners.

• Purchasing Power Parity (PPP): PPP theory assumes no tariffs or transportation costs when determining exchange rates. If US prices double compared to Kuwait's, the dollar's exchange rate must also double against the Kuwaiti Dinar. The exchange rate between two currencies is the ratio of their price levels.

• Tariff: Value-based tariffs are set as a percentage of the imported/exported good's value. Specific tariffs are a fixed amount per imported or exported unit. Tariffs on imports generally cause prices to go up, tariffs can, counterintuitively, promote competition.

• Infant Industry Argument: Emerging industries often need temporary protection from foreign competition to thrive.

• Protectionism: Protectionist arguments suggest newly emerging industries can compete without government assistance.

• Quota: Limiting the quantity of goods affects local prices. This is because supply is constrained.

• Dumping: Exporting a good for less than its production cost, and less than the domestic price. This can impact local production.

• Export Subsidies: Export subsidies (support) increase export prices.

• Common Market: A customs union that enables free movement of labor and capital between member states.

• Free Trade Area: Member countries eliminate trade barriers amongst themselves but maintain their own barriers against non-member countries.

• Customs Union: Member countries set a common external tariff on goods from outside the union.

تتناول هذه الملاحظات الدراسية ثلاثة نظريات رئيسية في الاقتصاد الدولي: نظرية التكلفة المطلقة لآدم سميث، ونظرية التكلفة النسبية لديفيد ريكاردو، ونظرية هيكشر-أولين. كل نظرية تقدم منظورًا مختلفًا عن كيفية تأثير تكاليف الإنتاج والعوامل الثابتة على التجارة الدولية.