hnd经济学2世界经济学 24页

F86E35Economics2:TheWorldEconomyEconomics2:TheWorldEconomyF86E35CandidateName:RENLUGradeandClass:2013BA1\nF86E35Economics2:TheWorldEconomyIntroduction21.Freetrade32.Absoluteadvantagesandcomparativeadvantages33.Thebenefitsoffreetrade44.Thepurposeofcarryingouttradeprotectionism55．OneMechanismoftheWorldTradeOrganization66.OnemeasureofEuropeanUnionpromoteseconomicintegration87.Balanceofpayments98.ThegeneraltrendsinUKtradeoverthelast30year109.Thebalanceofpaymentsaffectedbyexchangerates1210.Advantagesanddisadvantagesoffixedrateandfloatingrate1311.Effectsoffixedrateandfloatingrateonindividualsandcompany1512.Thecharacteristicsofthenewlyindustrializedcountriesandthedevelopingcountries1613.Theissuesofthenewlyindustrializedcountriesandthedevelopingcountries1714.TheinfluencesMulti-NationalCorporationsbringtonewlyindustrializedcountries.18Conclusion19Reference20\nF86E35Economics2:TheWorldEconomyIntroductionThisreporthasintroducedtheworldeconomicssimply.Thecontentincludes:Internationaltrade,freetrade,Protectionism,theroleofWTOandunder-developednation,UKabsoluteandcomparativeadvantage,theprotectionismandtworecentexamplesaboutdemonstrateargumentswhichgovernmentmayputforwardforitsuse,twobarriersoftrade,aEUinitiativeabouttheroleoftheEUinpromotingtrade,thecompositionofthebalanceofpayments,thegeneraltrendsinUKtradeoverthelast30years,thewaywhichthebalanceofpaymentsaffectedbyexchangerates,ananalysisoftwocurrentissuesthatfaceLDCs,andtheaidofrecentexamplesabouttwoimpactsofmultinationalsonNICsandLDCs.\nF86E35Economics2:TheWorldEconomyI.Freetrade(1).Freetradeisatypeoftradepolicythatallowstraderstoactandtransactwithoutinterferencefromgovernment.Thus,thepolicypermitstradingpartnersmutualgainsfromtrade,withgoodsandservicesproducedaccordingtothetheoryofcomparativeadvantage.China-ASEANfreetradeareawasformallyestablishedinJanuary1,2010,coveringapopulationof1900000000.China-ASEANfreetradearea’sGDPamountedto$6andtradeamountedto$4.5.Itisthelargestfreetradezoneamongdevelopingcountries.AftertheestablishmentofCAFTA,morethan90%productsarecarriedoutforzerotariffsonbothsides.AveragetariffsfromChinesetoASEANdecreasefrom9.8%to0.1%,AveragetariffsfromASEAN’ssixoldmemberstoChinesedecreasefrom12.8%to0.6%.Tariffs’hugereductionpromotedtherapidgrowthofbilateraltrade.ChinaandASEANcountries’tradeinvestmentgrows,economicintegrationdeepens,companiesandpeoplearewidelybenefit,realizinggoalsofmutualbenefitandwin-wincooperationandcommondevelopment.ChinaandASEAN’stotalquantityofbilateraltradegrowsrapidly.FromJanuarytoOctoberthisyear,thebilateraltradevolumehasreachedto$295900000000,ayear-on-yeargrowthof25.7%.(2).AbsoluteadvantagesandcomparativeadvantagesAbsoluteadvantagesissaidtooccurwhenonecountrycanproduceagoodorservicetopre-determinedqualitywithlessresourcesormorecheaplythananothercountry.Evenwhenacountryhasanabsoluteadvantageoveranothercountryintermsofcommoditiestheywishtotradeitwillstillbetotheirmutualadvantagetotrade\nF86E35Economics2:TheWorldEconomyprovidingeachcountryhasthecomparativeadvantages.UKisamajorimporterofmanufacturinggoodssuchclothes,shoes,toys,electronicproducesetc.astheselabororientedconsumergoodswillcostmoreinUKbefore1980s.UKhastheWiththedevelopmentofservice,theadvantageoftradeisservicetrade.Thegoodsthatcourtryimportandexportchangeovertimeasthegoodsinwhichtheyhaveacomparativeadvantagechangeovertime.Before1970s,manufacturingindustryisitsabsoluteadvantage.After1970s,serviceindustryismorecompetitiveforinternationaltradesuchascomputersoftware,businessserviceandpharmaceuticals.Theseindustryareseentobringthepossibilityoflongtermgrowth,whiletheindustriesbasedonheavycapitalinvestmentorrequiringrelativelycheaplaborwillnotbecompetitivewithdevelopingcountries.2.Thebenefitsoffreetrade(1).Goodsandservicesproducedatlowercost.Freetradecanpromotethecooperationofdifferentcountriesintheworld.Itcandecreasethecostofproducinggoods.(2).Greaterrangeofcommoditiesforconsumers,morechoice.Anycountriescannotproduceallproducts,theyallhaveproductswhichareunabletoproduce.Tradeallowustobuyallofthem.Greaterrangeofcommoditiesprovidecustomerswithmorechoice.(3).Increasedworld-wideoutput.Eachcountryproducingaccordingtotheir\nF86E35Economics2:TheWorldEconomyrespectiveadvantageshashighefficiency.Underthesameresources,ithashighyield.Therefore,internationaltradeincreasedworld-wideoutput.3.BarrierstoInternationalTradeTradebarriersaregovernment-inducedrestrictionsoninternationaltrade.Thebarrierscantakemanyforms,includingthefollowingtariffsandnontariffs.NonTarriffBarriers-exchangecontrolsInarealworld,thereisandshouldbeacertaindegreeofgovernmentinterventiononforeignexchange.Importsneedforeigncurrenciestobuygooodsandservicesfromabroad.Importersmustapplytothecenytalbankforthecurrencytheyneedtopurchasegoodsinthatcountry,TheCentralbankcanerxertcontroloverthevarietyandvolumeofbothimportsandexportsbycontrollingthequantityofforeigncuurencyitwillissuetoexportersandimporters.NonTarriffBarriers-ImportDepoitsGovernmentrequiresimporterstolodgeanon-interestbearingdepositinadvancewithitsCentralBankbeforetheycanbuygoodsandservicesfromabroad.Besides,thedepositisusuallyinanamountequaltoallorpartofthecostofimportedgoods.Thisistimeconsumingandobviouslyexpensivesinceitreducestheliquidityoftheimportingfirms,whichtendtohindertheirimportingactivities.Before1984,theNigerianadvancedimportdepositrangedfrom50%to200%ofthevalueofalistofimportitems.\nF86E35Economics2:TheWorldEconomyGiveaexampleabouttariffs,35%tariffsonChinesetyresimposedontheUnitedStateson11thSeptemberin2009.ItmakeChinesetyresfirmshavetoincreasepriceifsalesinAmerica.Forexample,tnontariffsinRussiatoUkraineforembargoeswhichsuspensionofUkraineimportsofjuiceon29thJulyin2014.ItmakeUkraine’sjuicenotallowsaleinRussia.4.ThepurposeofraisingbarrierstoInternationalTrade(1)Thepurposeistoprotectemployment.FootwearmanufactureersassociationsofItaly,SpainadPortugalarereportedtohavefieldapplicationstotheEUtocurbfootwearimportsfromChina.LocalshoemarkersinElche,thecapitalofSpain’sonceflourishingfootwearindustry,arguethat“madeinChina”istakingawaytheirjobsbythatChineseshoeshavebeenboominginSpainjustbecauseofgoodqualityandreasonableprices.(2)Thepurposeistoanti-dumping.InJuly2012,SolarWorldAG,aGermangiant,ledaconsortiumofaround25EUsolarpanelproducerstofileacomplainttotheEUCommissiontoinvestigatewhethertherehasbeendistortionofcompetitionbyChinesecounterpartsduetodumping.SoonGermanyagainstChinalowprice.\nF86E35Economics2:TheWorldEconomy5．TheRoleofWTOThe WorldTradeOrganization (WTO)isan organization thatintendstosuperviseand liberalizeinternationaltrade.Theorganizationofficiallycommencedon1January1995underthe MarrakechAgreement,signedby123nationson15April1994,replacingthe GeneralAgreementonTariffsandTrade(GATT),whichcommencedin1948. Theorganizationdealswithregulationoftradebetweenparticipatingcountriesbyprovidingaframeworkfornegotiatingandformalizingtradeagreementsandadisputeresolutionprocessaimedatenforcingparticipants'adherencetoWTOagreements,whicharesignedbyrepresentativesofmembergovernmentsandratifiedbytheirparliaments.TheWTOdisputesettlementmechanismismeasuresofdealingwithtradedisputesbetweenmembers.Itistheeffectivewayforcountriesespeciallythedevelopingcountriestoresolvetheeconomicfrictionandsafeguardtheirlegitimaterightsandinterests.Itisveryunfavorableforthedevelopingcountriestoresolvetradedisputesespeciallytradedisputeswiththedevelopedcountriesthroughbilateralchannels.Thebilateralapproachpursuesstrengthdoctrine.Involvedintradedisputesamongdevelopingcountries,theWTOdisputesettlementmechanismrulingiscomparativelyfairandreasonable.Aseitherthecomplainantorrespondent,thelegitimateinterestsofthedevelopingcountrieshavebeeneffectivelyprotected.ItisbecausetheWTOdisputeadjudicationhasverystrongfairness,developingcountriesgenerallyhaveahighenthusiasmtousetheWTOdisputesettlementmechanism.SomelargereconomicscaledevelopingcountriesismoreactiveintheuseofWTOdisputesettlementmechanism.Ithelpstoreducetheeconomicfrictionbetweencountries,andpromotefriendlyrelationsamongnations.The UruguayRound wasthe8throundof multilateraltradenegotiations (MTN)\nF86E35Economics2:TheWorldEconomyconductedwithintheframeworkofthe GeneralAgreementonTariffsandTrade(GATT),spanningfrom1986to1994andembracing123countriesas"contractingparties".TheRoundledtothecreationofthe WorldTradeOrganization,withGATT remainingasanintegralpartoftheWTOagreements.ThebroadmandateoftheRoundhadbeentoextendGATTtraderulestoareaspreviouslyexemptedastoodifficulttoliberalize(agriculture, textiles)andincreasinglyimportantnewareaspreviouslynotincluded(tradein services, intellectualproperty,investmentpolicy tradedistortions)HerearesomeothersareastheWTOhasdealtwithinattemptstoestablishitselfasthepolicingbodypromotingfreetrade.TheBananaDispute.TheWTOruledthattheEuropeanUniondiscriminatedunfairlyagainsttheUSwithitsbananaimportrules.TheWTOallowedtheUStoslapa$191millionsanctionontheEU.Wasitpaid?Wedonotknowbutprobablynotso.6.OnemeasureofEuropeanUnionpromoteseconomicintegrationThe EuropeanUnion (EU)isa politico-economic unionof28 memberstates thatarelocatedprimarilyinEurope. TheEUoperatesthroughasystemofsupranational institutions and intergovernmental negotiateddecisionsbythememberstates. Theinstitutionsare:the EuropeanCommission,the CounciloftheEuropeanUnion,the EuropeanCouncil,the CourtofJusticeoftheEuropeanUnion,the EuropeanCentralBank,the CourtofAuditors,andthe EuropeanParliament.TheEuropeanParliamentiselectedeveryfiveyearsby EUcitizens(1)EUcaneliminatecustomersdutiesandquotasonimportsandexportsofgoodsbetweenmemberstatesandeliminatetariffsbetweenEUmembers.Thoughtheinstitutions,memberscanestablishcommonpoliciesforagricultureandtransport\nF86E35Economics2:TheWorldEconomyforfreetrade.(1)Itcanacceleratetheinvestmentfromawiderangeofcontries.WiththerisingstatusoftheeuroanddevelopmentofEuropeancapitalmarket,members’costofcapitalwilldecline,whichisconducivetoinvestmentandeconomicgrowth.TheEuropeanCentralBank(ECB)developandimplementaunifiedmonetarypolicy,eachcountry’sinterestrates,pricesandinvestmentreturnswillgraduallynarrowthedifferencesorreachtounanimous,leadingtoanoveralldeclineofpriceandthelevelofinterestrates.7.Balanceofpayments(https://www.gov.uk/government/statistics/announcements)The balanceofpayments (BOP)ofacountryistherecordofalleconomictransactionsbetweentheresidentsofacountryandtherestoftheworldinaparticularperiod(overaquarterofayearormorecommonlyoverayear).Thesetransactionsaremadebyindividuals,firmsandgovernmentbodies.Thusthebalanceofpaymentsincludesallexternalvisibleandnon-visibletransactionsofacountryduringagivenperiod,usuallyayear.Itrepresentsasummationofcountry'scurrentdemandandsupplyoftheclaimsonforeigncurrenciesandofforeignclaimsonitscurrency\nF86E35Economics2:TheWorldEconomy\nF86E35Economics2:TheWorldEconomyThistableillustratescurrentaccount,capitalaccountandfinancialaccountinUKduringthe20yearsfrom1980to2010.Intermsofcurrentaccount,therejustfouryearsthefigureispositivewhenbetween1980and1983.Andthenthefigurealmostnegativefrom1984to2010.Andthefigureachievesthelowestnumberabout-55190millionin2008.ThissituationillustratethattheeconomyofUKdevelopnotverywell.Asforcapitalaccount,thedatashowsthatthisaccountexperienceafluctuatetrend.First,thefigurewas-4millionin1980andthenthefiguredecreaseto-79millionin1981.Afterthatthefigurewas6millionin1982increaseto159millionin1987.Whatisfunnythingisthefigurefallagainto-39millionin1988.Afterthatthefigureexperienceafluctuateandwhatisnotableisthefiguregainalowestnumber-1527millionin2006.\nF86E35Economics2:TheWorldEconomyIntermsoffinancialaccount,thefigureseeanpositivetrendfrom2157millionin1980to122millionin1986.Andthenthefigureexperienceanegativetrendbetween-9690millionin1987and-23296millionin1993.Andfrom-20261millionin1999to-30276millionin2010thisaccountexperiencenegativetrendagain,andgetthelowestnumberin2008becauseofthefinancialcrisisthefigurewas-39301million.8.ThegeneraltrendsinUKtradeoverthelast30yearOverall,theevolutionoftradeingoodsshowanupwardtrend.Withthequickdevelopment,UKneedtokeepupwiththetimes,thecountrymustthroughtradeingoodtoincreasecountry’sincomesowiththepassageoftime,therearemoreandmoretradeinUK.\nF86E35Economics2:TheWorldEconomyThetableshowstheevolutionoftradeingoodsandservicesinUKbetween1980and2008.Thetradeingoodsaccountstand20billionin1980.Thetradeingoodsaccounthasremainedindeficit.Thedeficitgrewremarkableinthelate1980storeachapeakofabout24billionin1989.Andthendecreasedbackto20billioninearly1990sandkeepastableat10billionfrom1991to1998.In1998thedeficitjumpedbyover9billion,andithascontinuedtorisesince,reachingacashrecordof92.9billionin2008.Thechartshowsthatthetotalgoodsexportsarelessthanimports,whichleadstodeficit.However,thetotalserviceexportsaremorethantotalserviceimports,whichresultsinsurplus.ItshowsUnitedKingdomisinalargefiscaldeficitinthelast30years.Thehighestsurplusisin1981,howeverthecurrentbalancedeficitfrom1984to1990.From1984to1989,thecurrentbalancedeficitandin1987,thedeficitincreasequickly.Thecurrentbalancedeficitfellsharplyfrom1990to1991.From1992to1997,thecurrentbalanceslightlyfluctuates.Thenfrom2000to2006,thedeficitincreasedsubstantially,althoughfrom2002to2004,thereisaslightdecline.From2007to2008deficithasasteepdecline.Mainreasonmaybeingoodstradebalancedeficits,whilethesurplusontradeinservices,especiallyinthelast30yearsgrowth.Inthepast30yearsBritain'smerchandisetradedecreased,becauseofthehighcostofHR,theUKisfewtodoingthemanufacture,mostgoodsisdependonimported,noexported.Butthefinancialservices,rentingandbusiness,istotallyincreased,sointhepast30years,theUKfinancialhasbeensteadilyincreasing.\nF86E35Economics2:TheWorldEconomy9.Thebalanceofpaymentsaffectedbyexchangerates(1)Theeffectsofexchangeratesfortradea.Importedgoodswillbedearer,thereforetheTradeinGoodsislikelytomoveintodeficit.Consumersmayturntoconsumemoreimportedgoods;Inflationmaybelowerbecausedomesticfirmsmayreduceprices.ThepriceofimportedrawmaterialsmaygodownagainaffectingtheTradeaspect.Consumersmayfinditeasiertobuyimportedgoods.b.Domesticgoodsandserviceswillbecheaperbothinforeignanddomesticmarkets.Acountrywhichhasreducedthevalueofitscurrencywouldcertainlybelookingtosellmoreabroad.ThisshouldmeananimprovementinTradeinGoods.CheapercurrencyhelpsboosttheexportSeeanexample:AUKfirmmanufacturesharddiscsforacomputerfirmintheUSA.Sellingprice:100pounds.Exchangerate:1pounds=$1.5CosttotheAmerican:$150.Exchangerate:1pounds=$2CosttotheAmerican:$200TheAmericanfirmmayconsiderthistobetooexpensiveandlookelsewhereforacheaperalternative.If:Exchangerate:1pounds=$1CosttotheAmerican:$100TheAmericanfirmmayconsiderthistobecheaper,andbuymore.(2)Theeffectsofexchangeratesforcapitalaccountsa.Manufacturingfirmsmightforexamplebuildupstocksattecheaperpriceandforeigninvestmentmayincreasebecauseprofitssentbackwillbeworthmorein\nF86E35Economics2:TheWorldEconomytheirdomesticcurrency.b.Itcouldencouragefirmsandindividualstoinvestabroadinthattheforigncurrencyearnedwillbeworthmorewhensentbacktothedomesticmarket.10.AdvantagesanddisadvantagesoffixedrateandfloatingrateFloatingexchangerate orfluctuatingexchangerateisatypeof exchange-rateregime inwhichacurrency'svalueisallowedtofluctuateinresponsetomarketmechanismsofthe foreign-exchangemarket.Acurrencythatusesafloatingexchangerateisknownasafloatingcurrency.Afloatingcurrencyiscontrastedwitha fixedcurrency.Advantages.Largereserveswillnotbenecessarytoprotectthecurrencyagainstchangesorspeculation.Acountryhasnoobligationtomaintainexchangeratestability,andthereforeitdoesnotneedforeignexchangereserveasmuchasinthefixedexchangerates,whichcansaveforeignexchangefunds.Theexchangeratewillnotbecomeatargetbecausewhicheverwayitmoves,themechanismshouldstarttooperatequicklytorestoreequilibrium.Theimbalanceofacountry'sinternationalbalanceofpaymentscanbeeliminatedbyfreefluctuationofexchangerate.Governmentsdonothavetointroducemeasurestokeepthevalueatafixedrate,whichmightbeharmfultoothersectionsoftheeconomy.Becausethebalanceofpaymentsofeachcountrycanadjustbythemselves,whichensuresthestabilityofforeignexchangemarketinacertainextent.Disadvantages.\nF86E35Economics2:TheWorldEconomyThefuturesmarketisdesignedtopreventthis.Bybuyingforwardforcommoditiesapriceisagreedwhichdoesnotchangewhenthecommodityisdelivered.Itcausesallcountries'instabilityofabilityofinternationalsettlementandcommodityprice.Demandmaybeunstablebecauseexternalpricesofdomesticgoodswillbesubjecttochange.Planningproductionmaybedifficult.TheinstabilityofexchangerateincreasestheriskofinternationaltradeIfthereisinflationafloatingexchangeratewillnotalwaysdealwithiteffectivelybecausethedepreciationofthecurrencyintheforeignexchangemarketswillmakeimportsdearerandassistpossiblecostpushinflation. Fixedexchangerate,sometimescalleda peggedexchangerate,isatypeof exchangerateregime wherea currency'svalueisfixedagainsteitherthevalueofanothersinglecurrency,toa basketofothercurrencies,ortoanothermeasureofvalueAdvantages.Theyreduceuncertainty,thismakestradeandinvestmentsbetweenthetwocountrieseasierandmoreexternalandmorepredictableandisespeciallyusefulforsmalleconomiesinwhichexternaltradeformsalargepartoftheirGDP.Longtermgrantingofcredits,long-termcontractsandinvestmentoverseasareseentocarrylessrisk.Itmakesthecapacityoftheinternationalsettlementandthepriceofimportandexportgoodsbestable.ThefixedrateplayedacrucialroleinachievingthisgrowthinFDI.Thestabilityoftheexchangeratesuppressedthespeculationofforeignexchangemarkettoacertainextent.\nF86E35Economics2:TheWorldEconomyDisadvantages.Ifdeficitspersistthenreservesofforeigncurrencymaybeusedupquitequickly.Itleadstoreductionofexports,thedeficitofinternationalbalanceofpaymentsandmoreunstablethecurrency.Countrieswhichhaveapersistentdeficitorsurpluswillhavetotakesomeactionwhichmayhavesevereimpactsuponexportsandimportsorboth.Ifinflationoccurstheunderlyingcausewillneedtobetackled.Countriescannotrelyondevaluingthecurrencytogetridoftheproblem.Itweakenedtheautonomyofdomesticmonetarypolicy.11.EffectsoffixedrateandfloatingrateonindividualsandcompanyFloatingExchangeCompany.Floatingexchangeratesystemputforwardhigherrequirementsforcompany'smacro-economicmanagementcapacityanddevelopmentoffinancialmarket.Itincreasescompany’smanagementandoperationcost.Thecompanydirectlyproducesexchangeloss.Individuals.Inthefloatingexchangeratesystem,exchangeratetendtofluctuatesignificantly,whichisnotconducivetoindividualsinvestmentWithfloatingexchangerates,individualsmightspeculateinfinancialmarketsIndividualsarebeginningtorealizethechallengeofpriceadvantagerecessionandthenecessityofimprovingnonpricecompetitiveness.Theindividualsbegantorealizetheimportanceofmonetarysettlementtiming.\nF86E35Economics2:TheWorldEconomyTheindividualsbegantorealizetheimportanceofmonetarycurrencyselection.FixedExchangeCompany.Rigidexchangeratearrangementsmaybeconsideredimplicitexchangerateguarantee,soastoencouragecapitalinflowsintheshorttermandnohedgingofforeigndebt,damagingthecompany’shealthofthefinancialsystem.Fixedratemakesthecompany’sadjustmentofrelativepricebeeasierandsmoother.Itisbeneficialtoalong-termstabledevelopmentofcompany’seconomic.ItisdirectlygeneratetheexchangeratelossesIndividuals.ItIsconduciveforindividualstomakecostandprofitaccounting,whichavoidstheriskofexchangeratefluctuations.Iteasilyleadstocurrencyovervaluationandweakenthecompetitivenessoflocalexports,causingpersonalimbalancesoflong-termcurrent-account.Ithelpsindividualstoeliminatetheriskofexchangerateandreducethetransactioncostofinternationaltradeandinvestment.12.ThecharacteristicsofthenewlyindustrializedcountriesandthedevelopingcountriesNewlyindustrializedcountries’economicstructureespeciallyindustrialandagriculturalstructurechangessignificantly,andtheproportionofindustryislargerthanagriculture.Intotalexports,theproportionofmanufacturedgoodsincreased,\nF86E35Economics2:TheWorldEconomygettingridofthesituationofahalfofthedevelopingcountriesdependingonprimaryproducts.Manyintermediateproductsandmachineryandequipmentrequiredforproductionisstillinthehandsofthedevelopedcountries.Insomeproductionofmanufacturedgoods,Brazilisonlydevelopedcountries’assemblyprocessingfactory.Duetotheintroductionofalargenumberofforeigncapital,Brazilhaslargeforeigndebts,andtheamountofprincipalandinterestishuge.From2011to2014,theeconomyofBrazilisnotoptimisticthesituationoftheperiodforthesefouryears,theaverageeconomicwasonly1.4%.Thedevelopingcountriesrelyheavilyonagriculturalproduction.Fromtheproductionstructureofagriculture,low-incomecountries’shareofagricultureintheGDPismuchhigherthanthatofdevelopedcountries;fromtheemploymentstructure,theproportionofagriculturallaborinIndiaupto50%~70%;fromtheurbanizationlevel,theproportionofurbanpopulationintotalpopulationoflowandmiddleincomeismuchlowerthanthoseofhighincomecountries.UnderdevelopedmarketeconomyisthenatureofIndia’seconomy.Duetothelongsufferingboundcolonialplunderandfeudalrelationsofproduction,aswellasgovernment’simproperinterventionafterindependence,themarketofIndiafailedtooperateandwasdistortedseverely,unabletofunctionasthebasicmeansofresourceallocation.13.TheissuesofthenewlyindustrializedcountriesandthedevelopingcountriesNewlyindustrializingcountry:WhileBrazilintroducinglarge-scaleforeigncapitalandborrowingfromtheinternationalfinancialcapital,Brazilcannotsolvetheproblemofexcessivedependenceoninternationalcapitalintheeconomyandcannotsolvetheproblemof\nF86E35Economics2:TheWorldEconomyestablishingindependenteconomicsystemintheinternationaldivisionoflabor.Brazil'swealthgapis21timesthatofFrance,inBrazil's1.6billionofthenationalpopulation,"marginalizedpeople"withnofixedincomewashighlyupto50%.Brazilisnotonlythecountrywiththemostcapitalinthethirdworld,butalsothecountrywiththelargestforeigndebt.Largerandlargerforeigndebtofprincipleandinterestmakeseconomicdevelopmentbeonthebrinkofcollapse.LessDevelopedCountry:Chinafacesthedebtcrisisandfundbackflow.Theagriculturalinfrastructuredeterioratesandpercapitaoutputofgraindecreasedcontinuously.Becausepopulationgrowthexceededthegrowthofsocialmaterialproduction,thesocietyhasoverburdened.Laborroductivityofdevelopingcountryisonly1/23ofthatindevelopedcountries.Politicalinstabilityandfrequentwarsaggravatedtheexistingdifficulties,makingresidentsbecomedestituteandhomeless.14.TheinfluencesMulti-NationalCorporationsbringtonewlyindustrializedcountries.Overall,GeneralElectricCorporationplaysapositiverolefortheeconomicdevelopmentofthesecountries.GeneralElectric’sforeigninvestmenthasbroughtthecapitalrequiredforSingapore’seconomicdevelopment,technologyandadvancedmanagementidea,drivingthedevelopmentofthenationalindustry,whichhelpsthesecountriestorealizerapideconomicgrowthandquickincreaseinnationalpowerobjectively.GeneralElectricCorporationprovidesalargenumberofemployment\nF86E35Economics2:TheWorldEconomyopportunities,whichsolvestheseriousunemploymentissue,maintainingthestabilityofsociety.However,italsohasnegativeeffectsonthestatepower.Generallyspeaking,GeneralElectricCorporationhassomenegativeeffectsontheindependenceofSingapore’seconomicandsocialdevelopment.SomekeysectorsanddepartmentsofnationaleconomyhasriskofbeingcontrolledbytheGeneralElectricCorporation,orhaveevenbeencontrolled.Someimplementationofnationalindustrialpolicy,anti-unfaircompetitionpolicy,laborandenvironmentalpolicyareweakenedbecauseoftheexistenceofGeneralElectricCorporation.\nF86E35Economics2:TheWorldEconomyConclusionFormthisreport,Wehaveknowsomanyusefulknowledgeaboutinternationaltradandwecanknowmuchabouttheadvantagesoftradeandthefunctionsofdifferentorganizationsplaysintrade.AndwealsoknowalotofBalanceofPaymentofUKandthecharacteristicsandproblemsoflessdevelopedcountries.\nF86E35Economics2:TheWorldEconomyReference(1)http://www.cy580.com/content/2013/03/15/show149282.html(2)http://www.jlrtvu.jl.cn/xb/file.asp?fileid=20111237007(3)http://www.ppkao.com/tiku/shiti/20752.html(4)http://www.imibao.com/thread-12941-1-1.html(5)http://www.cye.com.cn/chuangyexinde/201212030934994_2.htm(6)http://en.wikipedia.org/wiki/Free_trade