Name : Gandi Gunawan
Class : 3EB03
NPM :23211006
International Trade
International
trade
is a trade that is carried on by a resident of a country with the population of
other countries on the basis of mutual agreement. Population in question can be
either an individual (individual to individual), between individuals and the
government of a country or a state government with other governments. In many
countries, international trade became one of the main factors for the increase
of GDP. Although international trade has been going on for thousands of years
(see Silk Road, Amber Road), its impact on economic interests, social,
political and only felt a few centuries later. International trade also helped
propel industrialization, transportation advances, globalization, and the
presence of multinational companies.
Theory of
International Trade
Model Adam Smith
Adam
Smith's model focuses on the absolute advantage states that a country will gain
an absolute advantage because the country is able to produce goods at a lower
cost than other countries. According to this theory if the price of the goods with
the same type do not have differences in many countries there is no reason to
conduct international trade.
Ricardian Model
The
Ricardian model focuses on comparative advantage and perhaps the most important
concept in international trade theory. In a Ricardian models, countries
specialize in producing what they are best production. Unlike other models,
this model predicts the framework in which countries will become full
specialist producing a variety of goods than commodities. Also, the model does not
directly incorporate Ricardian supporting factors, such as the relative amounts
of labor and capital in the country.
Heckscher-Ohlin
model
Heckscher-Ohlin
model is created as an alternative to the Ricardian model of comparative
advantage and the base. Putting aside the complexity is much more complicated
model does not prove more accurate predictions. However, from a theoretical
point of view the model does not provide an elegant solution using neoclassical
price mechanism into international trade theory.
This
theory argues that the pattern of international trade is determined by
differences in factors supporting. It predicts that countries will export goods
that make intensive use of factors fulfillment needs and will import goods that
will use locally scarce factors intensively. Ho empirical problems with the
model, known as Pradoks Leotief, which opened in empirical tests by Wassily
Leontief who found that the United States are more likely to export
labor-intensive goods than having capital adequacy and so on.
Model David
Ricardo
Theory
of Comparative Advantage (Comparative Advantages) which describes the
advantages komparafif measured in real cost reflecting labor costs.
Model J.S Mill
Demand
Theory Behind Titnbal (Reciprocal Demand) is seeking a balance between the two
goods exchange by the two countries to establish a baseline comparison
pertukaranya or domestic exchange.
The view of
Mercantilism
The
mercantilism of a group which reflects the ideals and ideology as well as the
commercial capital of the view of the political prosperity of the country
exceeds individual prosperity.
The
interest of the prosperity of the country can obtain stem from two different
sources as follows.
1.)
Stacking pearl metallic (gold) because the precious metal may strengthen the
position of the state in economic development.
2.)
Politics trade surplus is intended to support the value of exports over imports
so that the trade balance surplus or active.
Specific Factors
In
this model, labor mobility between industry and the other one is probably when
capital does not move between industries in the short term. Specific factors
refer to the specific provision that in the short-term factors of production,
such as physical capital, are not easily transferable between industries.
Mensugestikan theory if there is an increase in the price of an item, the owner
of a specific production factors to the goods will be for the actual term.
Additionally, owners of opposing specific factors of production (such as labor
and capital) are likely to have opposite agendas when lobbying for controls
over immigration of labor. Opposite relationship, both owners and workers
profit for the financiers in fact form an improvement in capital adequacy. This
model is ideal for particular industries. This model is suitable for
understanding income distribution but not to determine the pattern of trade.
Gravity Model
Gravity
model of trade presents a more empirical analysis of trading patterns rather
than the more theoretical models above. Gravity model, in its basic form, trade
guessed based on the distance between countries and the interaction between
countries in the size of its economy. This model mimics the Newton's law of
gravity which also takes into account the physical size and distance between the
two objects. This model has proven to be robust empirically by econometric
analysis. Other factors such as income level, diplomatic relations, and trade
policies are also included in the larger version of this model.
Factors
that Promote International Trade occurrence.
a.
Prosperity for the realization of a society (the main driving factor).
b.
Meet the needs (goods / services) that can not be produced domestically or
through imports.
c.
Disseminate and develop the use of technology for accelerated economic growth.
d.
Acquire and develop the use of technology for accelerated economic growth.
e.
Benefit generated by specialization.
Benefits
of International Trade.
a.
Increasing state revenues, it is intended by the increasing acceptance of
common foreign exchange, foreign exchange is earned from exports (the main
benefit).
b.
Can meet the need of the goods / services can not know yet able to be produced
domestically.
c.
Streamlining the export and import of goods help needed domestic industry.
d.
Increasing domestic industry.
e.
Increase incomes.
f.
Encourage the growth / development of the business world.
g.
Encourage mutual economic relations.
Various
International Trade.
a.
Bilateral trade on: is trade on conducted between the two countries.
For
example: trade conducted between Indonesia and Singapore.
b.
Regional trade: the trade is done in a particular area.
For
example: Trade in ASEAN.
c.
Inter-regional trade: trade is conducted between a particular region with other
regions.
For
example: ASEAN and EEC.
Multilateral
trading: trading that is done by many countries.
