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1、Economics2:TheWorldEconomyDE3H35Economics2:TheWorldEconomyOutcome1,2and3CandidateName:XuLunSCN:095352561DueDate:January4th2011TutorName:ZhangJuFinancial2XuLun16Economics2:TheWorldEconomyDE3H35Outcome1Financial2XuLun16Economics2:TheWorldEconomyDE3H35Thisreport
2、isaimingtousetablesandfigurestopresentPremieraclearpictureofwhattherealworldeconomyisandhelphimtomakeamajorchoiceofweatherornotjointheEuropeanUnion.Iamamemberofgovernment,IwillusemyknowledgeandskillstohelpMrPremierhaveabetterunderstandingoftheworldeconomyrule
3、sandIhopewhichcanhelpalittle.Firstofall,whencountriestradegoodsandserviceswithoutwishing,orbeingable,toimposeanybarriertothetrade,whichiscalledFreeTrade.ThereasonswhywedoFreeTradebusinessarealot,buttoobtainmorefinancialresourcesisbelievedmoreimportant.Andthei
4、rgoalofFreeTradeisneverchanged-toreducenon-tariffbarriers.Forinstance:in2009,there’sanagreementaboutFreeTradewassignedbetweenSouthKoreaandEastAsiaUnion.Itcanhelpsalotonbothsideseconomydevelopment.FreeTradeisthemainreasonwhyweshouldjoinEuropeanUnion,andwhichha
5、salsobeencalledInternationalTrade,originallyfocusongoodsandservicescouldbeexchangedfreelybetweentwocountrieswithoutanybarriers.Beforecompareorexplain,thereneedstwoassumptions.Firstoneisnobarriersofanykindwouldbeimposeduponentryofthegoodstoanymarket.Secondisth
6、esellingpricewouldbethe“economistsprice”whichwecanunderstandaspriceisuncertainty.Recently,therearesomepopulartopicshasbeendiscussedalot.LikeFreeTradealwaystalkedwithTradeProtection,Non-tariffbannersandTariffbanners.What’smore,FreeTradealsocanbringusalotofbene
7、fits.Increasetheworld-wideoutputisonethekeybenefits.Also,itcanincreasetheforeigncurrencyreservation.Everythinghastwosides,FreeTradebringsthecultureerosiontoo.OntheInternationalTrade,therearetwokindsofpolicy:liberalizationandprotectionism.Let’stakealookattheir
8、history,in1815,theBritishCornLawstookeffect,whichcanensuringself-sufficiency,thenin1846itwasabolished.TherewasatimeofFreeTradeuntil1914,especiallyintheexchangebetweenUKanditcolony.Financi
