1/9TheWorldEconomyTutor:QiangLuoStudent:SibeiLu2/91Introduction⋯⋯⋯.⋯⋯⋯⋯⋯⋯...⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯32Gainsfrominternationaltrade⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯.33Thefreetrade⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯/⋯⋯⋯⋯..34Absoluteandcomparativeadvantage⋯⋯⋯⋯⋯⋯⋯.⋯⋯⋯⋯⋯.35Reasonoftradebarriers⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯46Tradebarriers⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯..⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯47UsesofTheWorldTradeOrganisation(WTO)⋯⋯⋯⋯⋯⋯.⋯⋯.58TheroleofEuropeanUnioninpromotingtrade⋯⋯⋯⋯⋯⋯⋯⋯.59Compositionofthebalanceofpayments⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯510GeneraltrendsinUKtrade⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯611Thebalanceofpaymentsaffectedbyexchangerates⋯⋯⋯⋯⋯⋯712AdvantagesanddisadvantagesofthesinglecurrencyoftheUK⋯..713Twoeffectsonindividualsandbusinessesofsinglecurrency⋯⋯...714CharacteristicsofLessDevelopedCountries(LDCs)⋯⋯⋯⋯⋯...815ThetwocurrentissuesthatfaceLDCs⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯..816ImpactsofmultinationalsonNewlyIndustrializedCountriesandLDCs⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯..917Conclusion⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯.918Reference⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯...93/9IntroductionInthisreport,Iwillintroducefreetraderelevantorganizationswithexample,suchaswhatisfreetrade,whatareitsbenefitsandsoon.Theresourcesofthisreportwillbebasedonknowledgegotinthelessonsandtheinformationondifferentwebsite.GainsfrominternationaltradeNow,manycountriesstrivetodevelopinternationaltrades,whichbecauseitbringmanybenefitstopeople.Firstly,theresourcesaroundtheworldareusedefficientlybecauseofinternationaltrades,andtosupportmorechancesofdevelopmenttomanycountries,forexample,thecostofriceislowerinChinathanotherdevelopedcountries,andChinacanexportricetochangesomeproductsthatproduceinChinawithhighcost.Secondly,internationaltradecanmakeenhancethecompetition,creativityandspiritofinnovationofenterprisesandcountries,forexample,ChinatookpartinWOT,automobileindustrygotstrongimpactofimportedcarwithlowtaxation,butthenthereappearsomeChineseautomobilebusinesssuchasBYDandGEELY.Thirdly,somedevelopingcountriescanraisecapitalbyinternationaltradetoreducethegapbetweendevelopedcountries.Forexample,inthelast30years,exportingisthemainmethodtopusheconomicgrowthinChina,andithadobviouseffect.ThefreetradeFreetradeisasystemoftradepolicythatallowstraderstotradeacrossnationalboundarieswithoutinterferencefromtherespectivegovernments.Underafreetradepolicy,pricesarereflectionoftruesupplyanddemand,andarethesoledeterminantofresourceallocation.Forexample,manyfruitsthatareproducedinTaiwanaretreatedbyzerotariff,andfrom12thSeptember2021,thereareanotherfivekindsoffruitgotthistreatment,thisisakindoffreetrade.AbsoluteandcomparativeadvantageAbsoluteadvantageissaidtooccurwhenonecountycanproduceagoodorservicetoapre-determinedqualitymorecheaplythananothercountry.ComparativeadvantageistheoriginalbasisforInternationalTrade,althoughtherearenowsomequalificationstheoriginalconcept.Forexample:4/9TableT-shirtCountryA2402160CountryB601800WewillclearlyseethatCountryAhasanabsoluteadvantageoverCountryBinbothcommodities.ButtheadvantageithasismuchgreaterforTable.ForCountryAthecostof1Tableis9balesofT-shirt,whichis2160/240ForCountryBitis30,whichis1800/60ButifwelookatthecaseofT-shirtthenwewillfindthathereforCountryAthecostofabaleofT-shirtis1/9ofatractor,andCountryBitis1/30.Intermsof...
