Question 1: Briefly describe the reasons for the formation of monopoly? The development of concentrated production to a certain stage will inevitably lead to monopoly. First, the increasing concentration of production made monopoly possible. Secondly, the concentration of production also makes monopoly necessary and inevitable: First, the concentration of production makes the scale of enterprises expand, and the production capacity of large enterprises expands rapidly. In order to maintain and expand profits, it is necessary for large enterprises to form monopoly organizations and divide market shares to regulate production. Second, the concentration of production makes large enterprises huge in scale and rich in capital, which poses a high barrier to entry for small and medium-sized enterprises to enter the production and operation fields of large enterprises. Free competition is restricted, and an oligopoly pattern of a few large enterprises is gradually formed. Third, a few large companies are evenly matched. In order to avoid the disastrous consequences of excessive competition that would hurt both parties, they must seek some kind of compromise and reach a monopoly agreement.
Question 2: Briefly describe what economies of scale are and the significance of realizing economies of scale. Returns to scale mean that when the price level of input factors is inconvenient to the current technological level, all input factors change in the same proportion, and the output changing status.
When the proportion of output increase exceeds the proportion of factor input, it is increasing returns to scale. When the proportion of output increase is equal to the proportion of factor input, returns to scale are constant.
When the proportion of output increase is less than the proportion of factor input, it is diminishing returns to scale.
It can be simply measured with the following formula:
Let f(X) be the production function, y be the output, and t be the factor change rate, if
ty > f(tX) , it means increasing returns to scale;
ty = f(tX) , it means constant returns to scale;
ty Question 3: Briefly describe why using the graph Economies of scale can enable trade between the two countries. If your students are of different ages than you, communication will feel like a generation gap. If you think you are a teacher, you will only encourage them with the tone of an elder, hoping that they will achieve your expected goals. However, the development of students is hierarchical. You feel that your efforts are not rewarded as you believe. In fact, as long as you cancel your standards, you will be satisfied
Question 4: Briefly describe the theories that explain intra-industry trade in international economics? 10 points (1) Product Difference Theory
Similar products are those products that can be substituted for each other in consumption and use similar or similar production factors in production. It includes homogeneous products and differentiated products. Homogeneous products refer to products that have completely identical properties and can be completely substituted for each other, such as the same fruits, bricks, etc. Under normal circumstances, most of these commodities are the objects of inter-industry trade. However, due to different market locations and different market times, there is also a certain degree of intra-industry trade. Product differences or differentiated products refer to differences in product quality, performance, shape, design, specifications, trademarks and packaging in terms of physical form.
①Intra-industry trade of homogeneous products
The sale and purchase of homogeneous products in international trade often comes from the following reasons:
First, many raw materials ( Such as yellow sand, cement, etc.) have low unit value and relatively high transportation costs. Consumers should obtain them as close as possible to the source of raw material supply. So a country may import and export bulk raw materials at the same time. This is the case, for example, when China exports cement in Northeast China and imports cement in South China.
Second, some countries and regions (such as Singapore and Hong Kong) carry out a large number of re-export trade and re-export trade, and the forms of many of their imported and exported goods naturally remain basically unchanged. At this time, similar products will be reflected in the import items and export items of the re-exporting country at the same time, and statistical intra-industry trade will be formed.
Third, due to the seasonal characteristics of some products (such as fruits and vegetables), a country will sometimes import and sometimes export such goods. For example, the electricity import and export formed between some European countries in order to "shaving peaks and filling valleys".
Fourth, the price distortion caused by *** intervention, especially mutual dumping, will cause one country to export the same product in order to occupy the markets of other countries while importing, thus forming intra-industry trade. . In addition, when there are export tax rebates and import preferences, in order to compete with imported goods, domestic enterprises have to export to obtain tax rebates and then import to enjoy import preferences, resulting in intra-industry trade.
Fifth, due to the needs of economic cooperation or special technical conditions, some countries also conduct transactions in certain homogeneous products. For example, the banking and insurance industries of various countries go abroad and bring in. For example, China attracts foreign banks to invest in China, but also invests and establishes branches in other countries around the world.
Sixth, the internal trade of multinational companies will also form intra-industry trade, because most of the products, intermediate products and parts of the same commodity are classified into the same group of products, thus forming intra-industry trade.
As long as transportation costs and other factors are added to the analysis of these homogeneous product trades, they can still be explained by the He-Ru theory. Therefore, differential product trade analysis is the main content of intra-industry trade theory.
②Intra-industry trade of differentiated products
Data show that most intra-industry trade occurs between differentiated products. In the manufacturing industry, intra-industry trade goods are obviously higher in machinery, pharmaceuticals and transportation tools. Differentiated products belonging to the same product category have a high share in the modern economy. In the automotive industry, Ford is not like Honda, Toyota or Chevrolet. Therefore, two-way trade flows also occur between a large category of different varieties of products.
International product differences are the basis for intra-industry trade, which is reflected in three aspects: horizontal differences, technological differences and vertical differences of products:
a. Horizontal differences refer to products Differences in how features are combined. In a group of products, all products have certain essential characteristics, that is, core characteristics. The different combinations of these characteristics determine the differences of the products. Within the same differences, a series of products with different specifications can be See the existence of level differences. Such as tobacco, perfume, cosmetics, clothing, etc. Intra-industry trade in such products is mostly related to differences in consumer preferences. Differentiated products are different in terms of brands, specifications, services and other characteristics. It is precisely because of the incomplete substitutability of differentiated products that people have different demands for similar products. In an era when people are increasingly pursuing quality of life, and under the influence of scientific and technological progress, manufacturers can provide an increasingly diverse range of differentiated products, but it is difficult for domestic manufacturers in one country to meet all the needs of domestic consumers. If a country's consumers develop a demand for a certain feature of a foreign product, it may export and import similar products.
b. Technical differences refer to the differences caused by the emergence of new products. Similar products (such as household appliances of different grades) at different stages of the product life cycle are produced in different types of countries and then engaged in import and export trade. , intra-industry trade will occur. The product life cycle theory we talked about in the first section of this chapter...>>
Question 5: "Labor Economics" Briefly describe the types of unemployment and their causes The causes of unemployment are multifaceted, and the leading factors are not exactly the same in different countries or in different economic development periods of a country. Internationally, unemployment is generally divided into the following categories: (1) Frictional unemployment refers to temporary unemployment caused by functional defects in the labor market, such as new labor force unable to find a job, work interruption when workers change jobs, etc. ; (2) Seasonal unemployment refers to unemployment caused by seasonal changes in the demand for labor due to the influence of climate conditions, social customs or purchasing habits on production conditions or products in certain industries; (3) Technological unemployment refers to unemployment due to Unemployment caused by the use of new machines, equipment and materials, the adoption of new production technologies and new production management methods, and the emergence of local labor surplus; (4) Structural unemployment refers to changes in the economic and industrial structure as well as changes in the form and scale of production. Unemployment caused by prompting corresponding adjustments to the labor force structure; (5) Cyclic unemployment refers to unemployment caused by the cyclical shrinkage of the economy in market economy countries.
Question 6: Briefly describe the main reasons why companies raise prices under modern market economy conditions. Price increases can increase corporate profit margins, but they will also cause reduced competitiveness, consumer dissatisfaction, and dealer complaints. They may even be subject to interference from *** and criticism from peers, which will have a negative impact on the company. Even so, there are still many price increases in practice. The main reasons are:
1. To cope with the increase in product costs and reduce cost pressure. This is the main reason for the price increase of all products. Increases in costs are caused either by increases in raw material prices or by higher production or administrative expenses.
In order to ensure that profit margins are not reduced, companies adopt price increase strategies.
2. In order to adapt to inflation and reduce corporate losses. Under inflationary conditions, even if a business maintains its original price, the real value of its profits tends to decline over time. In order to reduce losses, companies have no choice but to raise prices and pass on the inflationary pressure to middlemen and consumers.
3. Product supply exceeds demand to curb excessive consumption. For some products, when the demand is strong but the production scale cannot be expanded in time and the supply exceeds the demand, the price can be raised to curb the demand, and at the same time, high profits can be achieved, which can alleviate market pressure and balance supply and demand. At the same time, conditions were prepared for expanding production.
4. Use customer psychology to create high-quality effects. As a strategy, companies can use price increases to create a brand image, so that consumers have a psychological mindset of high prices and high quality, so as to increase corporate visibility and product prestige. This effect is particularly obvious for innovative products, valuable commodities, and products whose production scale is limited and difficult to expand.
In order to ensure the smooth implementation of the price increase strategy, the timing of price increase can be selected under the following circumstances:
(1) The product is in a dominant position in the market;
(2) The product enters the growth stage;
(3) Seasonal products reach the peak sales season;
(4) Competitors’ products increase prices.
In addition, in terms of method selection, companies should use indirect price increases as much as possible to minimize the negative factors of price increases so that price increases do not affect sales and profits and can be used by potential consumers. generally accepted. At the same time, when companies raise prices, they should use various channels to explain the reasons for the price increase to customers, coupled with product strategies and promotion strategies, and help customers find ways to save, so as to reduce customer dissatisfaction, maintain corporate image, and improve consumer confidence. * **Consumer needs and purchasing behavior.
Question 7: The essential causes and content of economic globalization. The fundamental cause - excess capital. As another form of capital export, industrial capital, like financial capital, is caused by the ubiquitous excess of capital in capitalism. This is the fundamental reason for its emergence. However, the reason why industrial capital can become independent from the output of financial capital is due to monopoly, which can provide high profits and make monopoly itself a competitive goal. Monopoly uses the export of industrial capital as a means of self-realization. Enterprises that occupy a domestic monopoly position will inevitably launch international competition in order to monopolize the world market. One of the means is to export industrial capital and occupy other countries' markets and resources. Monopoly also creates conditions for the export of industrial capital. Those large and powerful companies are most likely to win in the competition with foreign local capital and break through the obstacles of capital transfer costs. Moreover, at this time, some backward countries already have the conditions for the import of industrial capital
To sum up, the essence of economic globalization is the globalization of the basic contradictions of capitalism in the process of universal exchanges in the world. Capital resolves such contradictions and crises by universalizing and globalizing its own contradictions and crises. This is an irreversible trend in the development of capital. However, the expansion and transfer of contradictions cannot fundamentally eliminate the inherent contradictions in capital relations, but only intensify them to a deeper and wider extent.
Content (1) Globalization of production. It refers to the trend of close cooperation between countries in production with the development of science and technology, the emergence of a series of high-precision products and process technologies, the strengthening of international division of labor and collaboration in the production field.
(2) Globalization of trade. Although international trade activities have a long history, its globalization has emerged in recent decades, driven by the industrial and technological revolution, and has developed faster in the past two or three decades.
(3) Globalization of capital. In the stage of monopoly capitalism, the export of capital means that the internationalization of capital begins to appear. In the past two to three decades, driven by the new technological revolution, the international flow of capital has increased at an unprecedented rate, forming a trend of capital globalization.