Lecture 1
International Trade
–International trade国际贸易: the movement of goods (such as the equipment to make movies, or
any other product) or services (such as the movie itself) across borders. !
–Countries buy and sell goods and services from one another constantly. !
•Export: a product sold from one country to another!
•Import: a product bought by one country from another!
–Trade balance贸易差额: is the difference between its total value of exports and its total value of
imports!
•usually including both goods and services!
–Trade surplus: export > import [i.e. China]!
–Trade deficit: import > export [i.e. US]!
–Bilateral trade balance双边贸易: the difference of exports and imports between 2 countries!
•A bilateral trade is the exchange of goods between two nations promoting trade and investment.
The two countries will$reduce or eliminate tariffs, import quotas, export restraints, and other
trade barriers to encourage trade and investment.!
–Value added: the difference between the value of the imported inputs and the value of the
exported product!
