360-1 - Chapter 1 An Introduction to International Trade...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 1 – An Introduction to International Trade See opening questions on p. 2 in text. Almost 200 countries in the world – goods are produced, exchanged and consumed in each country – Global Economy . Review of GNP vs. GDP. GNP: Production/output/income measure based on production GDP: Production/output/income measure based on production Canadian citizen working in Michigan: GDP for ___________, GNP for ____________. Standard of living (how to measure, “operationalize”) and compare: Income per capita or Per capita GNP (GDP). See Table 1.1 on p. 5-7. GNP per capita for 2001, both unadjusted and adjusted (PPP estimate). PPP estimate adjusts for differences in prices paid for goods and services, e.g. Honduras - $900 (unadjusted) vs. $2450 (PPP). Notice Japan, Switzerland, Norway, and Denmark. PPP-adjusted GNP/capita is HIGHER than unadjusted. Why? Notice U.S. has highest PPP-adjusted standard of living. See the article at this link http://www.timbro.com/euvsusa/ for a comparison of U.S. and EU GDP growth. Developed or industrialized countries (high income like US and EU) vs. Developing (low income like China and India). Index of Openness (IO): Exports (X) / GDP, can generally range from 0 to 100
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/23/2012 for the course ECON 360 taught by Professor Staff during the Spring '11 term at University of Michigan.

Page1 / 5

360-1 - Chapter 1 An Introduction to International Trade...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online