世界经济学outcome1 修订版(2)

2) Over specialization: some industries may be protected because they are almost the only one and if they decline drastically this could have a very severe impact on an economy. One very obvious example of both over specialization in customer base was

the Korean karaoke business detailed in our Four Lessons series (see our July 2009newsletter). This business provided a karaoke experience, only in Korean, in premisesthat sold neither food nor alcohol. I explained in that article that they had

over specialized their customer base to dieting, sober, Korean karaoke singers. That

business failed because it was over specialised.

3.4 some famous trade blocs to improve the international trade

3.4.1 the role of the WTO

The WTO dealt with in attempts to establish itself as the policing body promoting free trade.

Dumping: anti-dumping policy is one of the few forms of restriction as allowed by the wto rules.5

As an example, WTO issued final rulings on a long-term Brazil-U.S. cotton dispute, recently 2005, authorizing Brazil to impose annual sanctions worth some 294.7 million U.S. dollars against illegal U.S. subsidies. By these two ways, WTO successfully settled many trade disputes.

3.4.2 the role of the EU

EU initiatives for simplifying national and community rules include SLIM(simpler legislation for the internal market) and the European business test panel, which allows for consultation with business during the drafting stage of new legislation.

Currently, a single currency is in use between the 16 members of the Euro zone since 1999. If considered as a single economy, the EU makes it the largest economy in the world by nominal GDP and the second largest trade bloc economy in the world by PPP valuation of GDP. It is also the largest exporter, and largest importer of goods and services, and the biggest trading partner to several large countries such as India and China.

4. Conclusion

In this report, we analyse some information of world economy. We explain gains from trading internationally, and also using some example to explain absolute and comparative advantage . At last, it also explain the role of the WTO in the development of free trade.

5．References

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