About Sama Essay

6001 words - 25 pages

The role of foreign trade and its effects
Role zahraničního obchodu a jeho efekty
V. Jeníček, V. Krepl Faculty of International Relations, University of Economics, Prague, Czech Republic
Abstract: Foreign trade is the reflection of economic relationships among the individual economies and represents the part of the country foreign relationships, which include trade exchange of a part of the production. in the simplifies balance understanding, it is usually presupposed that the object of this exchange is such a part of the production, which exceeds the home consumers demand and thus is the object of export, or, vice versa, that part of the home demand which is not satisfied by the home ...view middle of the document...

) vede často k vývozu i těch produktů, které by bylo možné vzhledem k úrovni koupěschopné poptávky realizovat na domácím trhu, a naopak dovoz zahrnuje u většiny produktů i výrobky konkurující domácím výrobkům; zajišťuje tak pestřejší sortiment nabídky. Klíčová slova: funkce zahraničního obchodu, transformační funkce, faktor ekonomického růstu, faktor zaostávání domácí ekonomiky, míra a tvar otevřenosti ekonomiky, hodnocení efektů zahraničního obchodu

FUNCTION OF FOREIGN TRADE Foreign trade is historically the oldest and still important part of the external economic relationships. Their impact on the economic development of the individual countries has deepened considerably namely during the whole period after the WW2, in the last decades the international trade development belongs among the most dynamic elements of the world economy development. At that, it represents not only the dynamic development on the quantitative level, but also, from the viewpoint of the struc-

tural changes of the individual countries, also the complex international trade flows. in harmony with the conclusions of the classical, neo-classical as well as modern foreign trade theories, it can be stated that at present foreign trade belongs to the decisive factors influencing economic growth of both the individual countries as well as the world economy (Jeníček 2003). Looking at the functioning of foreign trade in the economy of the individual countries, we can find considerable differences in the dependence on the type of economy regarding its economic size and the level

Supported by the Ministry of Education, Youth and Sports of the czech republic (Project no. MSM 6138439909). Agric. Econ. – czEch, 55, 2009 (5): 211–220

211

of economic development. nevertheless, it is possible to mark certain functions as generally valid: – Transformation function, i.e. the influence of foreign trade on forming the internal economic balance level – growth function, i.e. fulfilling the viewpoint of the “economy of time“ with the result of saving national labour by taking part in the international division of labour – Foreign trade can, under certain conditions, act as a barrier of the home economy growth – Mutual interaction between the growth (or decline) of national income and the growth (decline) of export. TRANSFORMATION FUNCTION The transformation impact of foreign trade represents historically the primary meaning of the economic relationships with abroad. Foreign trade changes (transforms) the structure of national production, resp. of national resources, into the demanded structure in the sphere of use (intermediate as well as final). The transformation function of foreign trade is especially pronounced in the relatively small economies where the import flows are the prerequisite of overcoming the limits in production resources, respectively the efficiency of their use (with regard to the internal market scope). Therefore, it is possible to correct through import of certain...

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