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1、Economics2:TheWorldEconomyDE3H35Economics2:TheWorldEconomyOutcome1,2and3CandidateName:XuLunSCN:095352561DueDate:January4th2011TutorName:ZhangJuFinancial2XuLun16Economics2:TheWorldEconomyDE3H35Outcome1Financial2XuLun16Economics2:TheWorldEconomyDE3H35Th
2、isreportisaimingtousetablesandfigurestopresentPremieraclearpictureofwhattherealworldeconomyisandhelphimtomakeamajorchoiceofweatherornotjointheEuropeanUnion.Iamamemberofgovernment,IwillusemyknowledgeandskillstohelpMrPremierhaveabetterunderstandingofthe
3、worldeconomyrulesandIhopewhichcanhelpalittle.Firstofall,whencountriestradegoodsandserviceswithoutwishing,orbeingable,toimposeanybarriertothetrade,whichiscalledFreeTrade.ThereasonswhywedoFreeTradebusinessarealot,buttoobtainmorefinancialresourcesisbelie
4、vedmoreimportant.AndtheirgoalofFreeTradeisneverchanged-toreducenon-tariffbarriers.Forinstance:in2009,there’sanagreementaboutFreeTradewassignedbetweenSouthKoreaandEastAsiaUnion.Itcanhelpsalotonbothsideseconomydevelopment.FreeTradeisthemainreasonwhywesh
5、ouldjoinEuropeanUnion,andwhichhasalsobeencalledInternationalTrade,originallyfocusongoodsandservicescouldbeexchangedfreelybetweentwocountrieswithoutanybarriers.Beforecompareorexplain,thereneedstwoassumptions.Firstoneisnobarriersofanykindwouldbeimposedu
6、ponentryofthegoodstoanymarket.Secondisthesellingpricewouldbethe“economistsprice”whichwecanunderstandaspriceisuncertainty.Recently,therearesomepopulartopicshasbeendiscussedalot.LikeFreeTradealwaystalkedwithTradeProtection,Non-tariffbannersandTariffbann
7、ers.What’smore,FreeTradealsocanbringusalotofbenefits.Increasetheworld-wideoutputisonethekeybenefits.Also,itcanincreasetheforeigncurrencyreservation.Everythinghastwosides,FreeTradebringsthecultureerosiontoo.OntheInternationalTrade,therearetwokindsofpol
8、icy:liberalizationandprotectionism.Let’stakealookattheirhistory,in1815,theBritishCornLawstookeffect,whichcanensuringself-sufficiency,thenin1846itwasabolished.TherewasatimeofFreeTradeuntil1914,especiallyintheexchangebetweenUKanditcolony.Financi