Economics2:TheWorldEconomyF86E35CandidateName:RENLUGradeandClass:2013BAIIntroduction31. Freetrade42. Absoluteadvantagesandcomparativeadvantages43. Thebenefitsoffreetrade54. Thepurposeofcarryingouttradeprotectionism75.OneMechanismoftheWorldTradeOrganization86. OnemeasureofEuropeanUnionpromoteseconomicintegration97. Balanceofpayments108. ThegeneraltrendsinUKtradeoverthelast30year139. Thebalanceofpaymentsaffectedbyexchangerates1410. Advantagesanddisadvantagesoffixedrateandfloatingrate1611. Effectsoffixedrateandfloatingrateonindividualsandcompany1812. Thecharacteristicsofthenewlyindustrializedcountriesandthedevelopingcountries...1913. Theissuesofthenewlyindustrializedcountriesandthedevelopingcountries2014. TheinfluencesMulti-NationalCorporationsbringtonewlyindustrializedcountries.21Conclusion23Reference24IntroductionThisreporthasintroducedtheworldeconomicssimply.Thecontentincludes:Internationaltrade,freetrade,Protectionism,theroleofWTOandunder-developednation,UKabsoluteandcomparativeadvantage,theprotectionismandtworecentexamplesaboutdemonstrateargumentswhichgovernmentmayputforwardforitsuse,twobarriersoftrade,aEUinitiativeabouttheroleoftheEUinpromotingtrade,thecompositionofthebalanceofpayments,thegeneraltrendsinUKtradeoverthelast30years,thewaywhichthebalanceofpaymentsaffectedbyexchangerates,ananalysisoftwocurrentissuesthatfaceLDCs,andtheaidofrecentexamplesabouttwoimpactsofmultinationalsonNICsandLDCs.I. Freetrade(1) .Freetradeisatypeoftradepolicythatallowstraderstoactandtransactwithoutinterferencefromgovernment.Thus,thepolicypermitstradingpartnersmutualgainsfromtrade,withgoodsandservicesproducedaccordingtothetheoryofcomparativeadvantage.China-ASEANfreetradeareawasformallyestablishedinJanuary1,2010,coveringapopulationof1900000000.China-ASEANfreetradearea'sGDPamountedto$6andtradeamountedto$4.5.Itisthelargestfreetradezoneamongdevelopingcountries.AftertheestablishmentofCAFTA,morethan90%productsarecarriedoutforzerotariffsonbothsides.AveragetariffsfromChinese...