Production Possibility Frontiers (figure 3.1) Figure 3.1ġ3 How Can Money Change The Direction of Trade?Ĭontoh Harga dalam negeri Kayu dan Baja Gulung di Amerika dan Brazil Amerika Brazil Kayu U$ 1 5 real Baja U$ 2 4 Real Konsumen dikedua negara memiliki opsi membeli produk lokal atau produk impor untuk memenuhi kebutuhannya. Terms of Trade – at a rate of ¾ bolt of cloth for 1 ton of soybeans Terms of Trade – at a rate of 1 bolt of cloth for 1 ton of soybeans Gains from Specialization and Trade Keunggulan komparatif Amerika terletak di produksi kacang kedelai Biaya peluang produksi baju di Amerika adalah 2 unit baju. Kelebihan produksi dieksporĪ nation having absolute disadvantages in the production of two goods with respect to another nation has a comparative or relative advantage in the production of the good in which its absolute disadvantage is lessĮxample 1/2 1 2 1 Each Country Specializes Di Amerika, biaya peluang produksi per unit kacang kedelai adalah ½ unit baju-setiap penambahan 1 unit baju membutuhkan pengorbanan ½ unit baju. Theory that a nation has absolute advantage when it can produce a larger amount of a good or service for the same amount of inputs as can another country or When it can produce the same amount of a good or service using fewer inputs than could another countryħ Absolute Advantage Example Each Country SpecializesĨ Absolute Advantage Terms of Trade (Ratio of International Prices) Gains from Specialization and Trade Asumsikan setelah perdagangan konsumsi domestik atas barang yg diekspor sama dengan sebelum perdagangan. Mercantilism Economic philosophy based on belief that (1) a nation’s wealth depends on accumulated treasure, usually gold, and (2) to increase wealth, government policies should promote exports and discourage imports All rights reserved.ģ Learning Objectives Explain the theories that attempt to explain why certain goods are traded internationally Discuss the arguments for imposing trade restrictions Explain two basic kinds of import restrictions: tariff and nontariff trade barriersĤ Learning Objectives Appreciate the relevance of changing status of tariff and nontariff barriers to managers Explain some of the theories of foreign direct investment (7) Strengthening coordination and synergy between ministries and institutions.2 Theories of International Trade and InvestmentĬhapter three Theories of International Trade and Investment McGraw-Hill/Irwin International Business, 11/e Copyright © 2008 The McGraw-Hill Companies, Inc. (6) Broader cooperation schemes are not only tariff reduction but also investment cooperation schemes. (5) Export financing incentives and hedging instruments. (4) Trade facilitation through harmonization of regulations and policies between Indonesia and non-traditional countries. (3) Assistance and capacity building for business actors (exporters) so that Indonesian export products meet the policy / regulatory requirements imposed by non-traditional markets. (2) Establishing outlets / counters which are the show cases for superior Indonesian export products in non-traditional markets. With regard to the objective of diversifying exports, strategies that can be carried out in an effort to knock the door on Indonesian exports to non-traditional countries are as follows: (1) Market intelligence and export promotion by optimizing Indonesia’s representation abroad. In this paper, the author explores several alternatives to diversify exports to non-traditional markets, in an effort to reduce the trade balance deficit. Widyastutik), and published in a SINTA-accredited national journal (Warta Pengkajian Perdagangan vol 1 no 17). This paper was written by a lecturer at the Department of Economics (Dr.