Makalah International Trade 1

MAKALAH INTERNATIONAL TRADE

MAKER ( RIA DAMI ULFA ) (25215873)

Group  9:

-Kevin Henanta (23215698)

-Melvin JR (27215779)

-Ria Dami Ulfa (25215873)

International Trade

International Trade Theory

International trade is a trade that is made by a resident of a country with the population of another country on the basis of mutual agreement . Residents concerned can be antarperorangan( individual to individual ) , between the individual and the government of a country or a state government with other governments . In many countries , international trade became one of the main factors to boost GDP . Although international trade has been going on for thousands of years (see Silk Road , Amber Road ) , its impact on the interests of economic, social , political and only felt a few centuries later . International trade also helped propel industrialization , transportation advances , globalization , and the presence of multinational companies

1. Youth Views Mercantilism

Mercantilism is a Group That reflects the ideals and ideology of capitalism Commercial, as well as the views of political prosperity ON A gatra It is aimed to strengthen the review POSITION And Prosperity gatra exceed individual prosperity. International Trade Theory Of The Developing Mercantilism PESAT Around 16th Century based Thought of developing National Economy and Economic Development, WITH seek Period Should exports exceed imports Period.

In the foreign trade sector, mercantilist policies centered IN prayers main idea, ie:

Precious Metals fertilization, the goal is the establishment of a national gatra The POWERFUL And Prosperity fertilization nasonal to review sustain and develop the strength gatra

EVERY trade politics aimed to review support exports in excess of imports differences (Trade Balance Enabled). To review acquire The Trade Balance Active, then boosted exports and imports Must Must be limited. It is because the singer Main purpose of foreign trade is obtaining additional precious metal.

Article Search Google said international trade OR hearts of foreign trade, political weight point mercantilism aimed to review the differences enlarge exports in imports, as well as excess exports can be paid BY Precious Metals. Other mercantilist policy is the policy of hearts attempt to review the monopoly Trade And The Other Subscription, hearts efforts to obtain a review areas are colonized in order to market the industry findings. Mercantilism Theory pioneers BETWEEN lay Sir Josiah Child, Thomas Mun, Jean Bodin, Von HornichAnd Jean Baptiste Colbert.

Theory of Absolute Advantage (Absolute Advantage) by Adam Smith

In absolute advantage, Adam Smith put forward ideas as follows.

1. Their Division of Labour (International Labour Division) in Produce Similar Goods With the division of labor, a country can produce goods at a lower cost compared to other countries, resulting in holding the country’s trade gained absolute advantage.
2. International Specialization and Production Efficiency With specialization, a country will specialize in the production of goods that have an advantage. A State will import goods when produced (in the country) is not efficient or less profitable, so the absolute advantage is obtained when a State held specializes in producing goods. Absolute gain is defined as profit expressed as the number of hours / days of work needed to make the goods produced. A country will export a certain item because it can produce goods at a cost that is absolutely cheaper than other countries. In other words, the country has an absolute advantage in the production of goods. Thus, the absolute benefit occurs when a country is superior to one produced products, the production costs are cheaper when compared to the cost of production in other countries

Based on the above table it can be seen, that Indonesia is superior for producing spices and Japan is superior to electronic production, so that the Indonesian state should specialize for spice products and the country of Japan specialized for electronic products. Tus, if the two countries entered into trade or export and import, then both will benefit. The amount of profit can be calculated as follows.

1. For countries Indonesia, Basis Swap Home Affairs (DTD) 1 kg of spices will get 1 unit of electronics, while Japan 1 kg of spices will earn 4 electronic units. Tus, if Indonesia redeem its spices with the Japanese electronics will make a profit of 3 electronics unit, the which is Obtained from (4 electronics – 1 electronic).
2. For Japan Basis Swap In Their land (DTD) one electronic unit will get 0:25 spices, while in Indonesia, one electronic unit will get 1 kg of spices. Tus, if the country of Japan hold or redeem electronic trade with Indonesia will make a profit of 0.75 kg of spices, the which is Obtained from (1 kg spices – electronic 0.25).

   Theory of Comparative Advantage (Comparative Advantage) by David Ricardo David Ricardo said that absolute advantage that is expressed by Adam Smith has drawbacks, including the following. a. What if a country is more productive in producing two types of goods compared with other countries? As an initial overview, on the one hand a country has a production factor of labor and nature are more favorable compared with other countries, so that the country is superior and more productive in producing goods than any other country. Conversely, on the other hand other countries lagging behind in producing goods. From the above description can disimpilkan, that if the condition of a country more productive on two types of goods, then the country can not have relations of exchange or trade. b. Whether the country can also conduct international trade? On the concept of comparative advantage (the cost difference can be compared) used as a basis in international trade is the amount of labor used to produce a good. Thus, the motive trade is not just the absolute more productive (more profitable) to produce the kind of goods, but according to David Ricardo even if a country was lagging behind in every appearance, he will still be able to participate in international trade, provided that State to produce goods at lower cost cost (labor) than others. Thus, the comparative advantage occurs when a country is superior to both kinds of products, labor costs are cheaper if it be compared to the cost of labor in other countries.

Based on the above table it can be seen that Japan excels against both types of products, both electronic and spices, but the highest excellence in electronics production. In contrast, the Indonesian state is weak against both types of products, both electronic and spices, but the smallest weakness in the production of spices. So, should Japan specializing in electronic products and state of Indonesia specialize in spice products. Had the two countries held a trade, then both will benefit. The amount of profit can be calculated as follows.

1. In Japan’s first electronic unit = 0,625 kg of spices, while in Indonesia, one electronic unit = 1 kg rempahrempah. If the country of Japan to exchange electronically with spices in Indonesia, it will get a profit of 0.375, which is obtained from (1 rempahrempah – 0,625 spices).
2. In Indonesia 1 kg of spices = 1 electronic unit, being in Japan 1 kg of spices = 1.6 electronic unit. If the country of Indonesia redeem its spices with electronics, then Japan will get a profit of 0.6, which is obtained from (1.6 Electronics – 1 electronic). The theory put forward by The Classics in international trade theory, based on the following assumptions. a. Trade in goods and trade two two countries. b. No change in technology.
3. The theory of value on the basis of labor.
4. The cost of production is assumed constant.
5. Transportation costs are ignored (= zero).
6. Freedom of movement of factors of production in the country, but can not move through the state border.
7. Perfect competition in the goods market and the market of production factors.
8. Income distribution has not changed.
9. Trades executed on the basis of barter

Demand Theory of Reciprocal ( Reciprocal Demand) by John Stuart Mill

The theory put forward by J.S. Mill actually went on Comparative Advantage Theory of David Ricardo , which is looking for a point of equilibrium exchange between the two items by the two countries with the exchange ratio or by specifying a Base Rate of the Interior ( DTD ) . Intent Theory of Reciprocity is a balance between demand and supply, as both demand and supply determine the amount of goods exported and imported goods . Thus, according to J.S. Mill during differences in the production ratio of consumption between the two countries , the benefits of trade can always be carried out in both countries. And a country will benefit if the number of working hours needed to make all goods exports was smaller than the number of hours of work required if all the imported goods produced .

5. Richardian

Focusing on comparative advantage and is perhaps the most important concept in the theory of international trafficking . In a Ricardian models , countries specialize in producing what they are best production . Unlike other models , this model predicts the framework in which countries will be specialists fully than producing a variety of commodities . Also , the Ricardian models do not directly enter the supporting factors , such as the relative amounts of labor and capital in the country . 

6.      Heckscher-Ohlin
created as an alternative to the Ricardian model of comparative advantages and basic . Leaving aside the complexity is much more complicated the model did not prove more accurate prediction .However , from a theoretical point of view of the model does not provide an elegant solution using neoclassical price mechanism into international trade theory . The theory argues that the pattern of international trade is determined by differences in the contributing factors . It predicts that countries will export goods that make intensive use of factors of fulfilling the needs and will import goods that will use locally scarce factor intensively . Empirical problems with the model H- o , known as PradoksLeotief , which opened in empirical tests by Wassily Leontief who found that the United States are more likely to export labor intensive than capital intensive goods , and so on.

REFERENCES : 

 http://www.ssbelajar.net/2012/03/teori-perdagangan-internasional.html
 https://id.wikipedia.org/wiki/Perdagangan_internasional

NEWS 

Import and export activities, as part of international trade, are exempted from the obligation to use rupiah in all transactions, according to an official with Bank Indonesia (BI).

Aside from export and import activities, exemptions have also been granted for several strategic infrastructure projects including the financing of the construction of airports and power plants.

‘Foreign currency can still be used for import and export transactions […] We are flexible so as to not interfere in the economy,’ The head of BI’s payment system policy and monitoring department, Eni Panggabean, told The Jakarta Post on Sunday.

Eni made the statement particularly in response to comments by Anne Patricia Sutanto, president director of garment producer PT Pancaprima Ekabrothers, who criticized the BI policy that previously required all business transactions performed in Indonesian territory to be conducted in rupiah.

Anne said the policy had especially hurt companies involved in import and export activities because, with the mandatory use of rupiah, they had to renegotiate their business contracts with their foreign partners.

Before the policy was implemented, most export and import related transactions were conducted in US dollars. ‘Now, we have to change this and, for example, we have to tell shipping companies to draft invoices in rupiah,’ Anne said. ‘This policy has caused confusion in the business world.’

Central bank regulation (PBI) No. 17, which is the object of the complaint, stipulates that when non-rupiah currencies can be used in international financial and commercial transactions, specifies income and expenditure under the state budget, regulates foreign currency savings and deposits in banks and international financing transactions, as well as many other transactions covered by the BI Law and the Investment Law.

‘Those who already signed contracts [using foreign currencies] before July can still proceed,’ Eni added.

Exemptions to the rule were also made for strategic infrastructure projects, such as airports and projects in electricity and geothermal energy, with the consent of the central bank, Eni added.

Eni also said BI had given some companies extra time to adjust their accounting systems to rupiah, as backed up by article 16 of PBI No.17.

The article stipulates that the bank can adopt a particular policy if the mandatory use of rupiah for non-cash transactions causes problems for business people, with certain qualifications.

‘The company’s system and accounting can’t change quickly by changing the accounting records from dollars to rupiah, some companies need to close their financial book first,’ Eni said, adding that the length of time to adjust the system depended on the company’s request to the central bank.

Eni maintained that companies had been supportive of the policy, including in the travel sector and the oil and gas sector.

BI has stood firm in implementing its PBI which regulates the mandatory usage of rupiah for all transactions onshore, with the central bank banning all transactions conducted in foreign currencies such as the US dollar.

The policy also stemmed from the Currency Law in 2011, she said, so it did not come out of the blue amid the rupiah devaluation.

The measure was taken to curb the local demand for dollars and hence stabilize the rupiah, which has been among Asia’s most volatile currencies.

The strong demand for greenbacks has partly contributed to the fall in the rupiah, which has lost about 14 percent this year amid the fall in regional financial markets. It stood at Rp 14,306 on Friday against the dollar, according to the Jakarta Interbank Spot Dollar Rate (JISDOR), way past the previously significant 14,000-mark.

Currency trade consultant and expert Farial Anwar voiced the same concern, warning against further devaluation of the rupiah if the rule was not enforced, as the pressure on the rupiah mounted inside and outside the country.

‘There are already too many transactions inside the country unrelated to international transactions that use foreign currencies. Even apartment rents, mall rents, or hotel bookings don’t use rupiah. That is not right,’ Farial said.

Analysis 

The international trading management of Indonesia must be fixed and made to the better one and the goverment also have to be careful facing some factor that can hamper our international trading management such as :

 a. Inflation

     High inflation may cause our export commodities are less able to compete on the world market, due to the high inflation export prices will be more expensive. Consequently rarely willing to buy the products of our exports.

b. Entrepreneurs in the country who are not protected by their international trade. International Trade little effect to the domestic business, they compete with employers in the region. Kualiatas and the quality of the entrepreneur is very uncertain in the employer’s business

c. Their new colonialism by the developed countries,

            Such conditions create the atmosphere like during the colonial period although differing indirectly. Developing countries that do not have a better capacity will depend on the developed countries. As a consequence, developing countries will easily be tottering with developed countries.

And to overcome the negative effects of international trade and the establishment of ACFTA, diharakan government to quickly perform a variety of approaches to the society by strengthening the human resources (HR) is to develop educational evenly in each area so hopefully everyone can be Tenggara work and professional experts and this is called progressive policies  -Jakarta Post