3interdependence曼昆微观经济学课件.ppt

3 InterdependenceandtheGainsfromTrade Consideryourtypicalday YouwakeuptoanalarmclockmadeinKorea YoupouryourselforangejuicemadefromFloridaorangesandcoffeefrombeansgrowninBrazil YouputonsomeclothesmadeofcottongrowninGeorgiaandsewninfactoriesinThailand YouwatchthemorningnewsbroadcastfromNewYorkonyourTVmadeinJapan Youdrivetoclassinacarmadeofpartsmanufacturedinahalf dozendifferentcountries andyouhaven tbeenupformorethantwohoursyet InterdependenceandtheGainsfromTrade Remember economicsisthestudyofhowsocietiesproduceanddistributegoodsinanattempttosatisfythewantsandneedsofitsmembers InterdependenceandtheGainsfromTrade Howdowesatisfyourwantsandneedsinaglobaleconomy Wecanbeeconomicallyself sufficient Wecanspecializeandtradewithothers leadingtoeconomicinterdependence InterdependenceandtheGainsfromTrade Individualsandnationsrelyonspecializedproductionandexchangeasawaytoaddressproblemscausedbyscarcity Butthisgivesrisetotwoquestions Whyisinterdependencethenorm Whatdeterminesproductionandtrade InterdependenceandtheGainsfromTrade Whyisinterdependencethenorm Interdependenceoccursbecausepeoplearebetteroffwhentheyspecializeandtradewithothers Whatdeterminesthepatternofproductionandtrade Patternsofproductionandtradearebasedupondifferencesinopportunitycosts APARABLEFORTHEMODERNECONOMY Imagine onlytwogoods potatoesandmeat onlytwopeople apotatofarmerandacattlerancherWhatshouldeachproduce Whyshouldtheytrade Table1TheProductionOpportunitiesoftheFarmerandRancher Copyright 2004South Western ProductionPossibilities Self SufficiencyByignoringeachother Eachconsumeswhattheyeachproduce Theproductionpossibilitiesfrontierisalsotheconsumptionpossibilitiesfrontier Withouttrade economicgainsarediminished Figure1TheProductionPossibilitiesCurve Potatoes ounces 0 Meat ounces a TheFarmer sProductionPossibilitiesFrontier Copyright 2003Southwestern ThomsonLearning Figure1TheProductionPossibilitiesCurve Copyright 2003Southwestern ThomsonLearning Potatoes ounces 0 Meat ounces b TheRancher sProductionPossibilitiesFrontier Thefarmershouldproducepotatoes Theranchershouldproducemeat SpecializationandTrade TheFarmerandtheRancherSpecializeandTradeEachwouldbebetteroffiftheyspecializedinproducingtheproducttheyaremoresuitedtoproduce andthentradewitheachother Table2TheGainsfromTrade ASummary Copyright 2004South Western Figure2HowTradeExpandstheSetofConsumptionOpportunities Copyright 2003Southwestern ThomsonLearning Potatoes ounces 0 Meat ounces a TheFarmer sProductionandConsumption Figure2HowTradeExpandstheSetofConsumptionOpportunities Copyright 2004South Western Potatoes ounces 0 Meat ounces b TheRancher sProductionandConsumption Table2TheGainsfromTrade ASummary Copyright 2004South Western Whocanproducepotatoesatalowercost thefarmerortherancher THEPRINCIPLEOFCOMPARATIVEADVANTAGE Differencesinthecostsofproductiondeterminethefollowing Whoshouldproducewhat Howmuchshouldbetradedforeachproduct THEPRINCIPLEOFCOMPARATIVEADVANTAGE DifferencesinCostsofProductionTwowaystomeasuredifferencesincostsofproduction Thenumberofhoursrequiredtoproduceaunitofoutput forexample onepoundofpotatoes Theopportunitycostofsacrificingonegoodforanother AbsoluteAdvantage Thecomparisonamongproducersofagoodaccordingtotheirproductivity absoluteadvantageDescribestheproductivityofoneperson firm ornationcomparedtothatofanother Theproducerthatrequiresasmallerquantityofinputstoproduceagoodissaidtohaveanabsoluteadvantageinproducingthatgood TheRancherhasanabsoluteadvantageintheproductionofbothmeatandpotatoes AbsoluteAdvantage TheRancherneedsonly10minutestoproduceanounceofpotatoes whereastheFarmerneeds15minutes TheRancherneedsonly20minutestoproduceanounceofmeat whereastheFarmerneeds60minutes OpportunityCostandComparativeAdvantage Comparesproducersofagoodaccordingtotheiropportunitycost WhatevermustbegivenuptoobtainsomeitemTheproducerwhohasthesmalleropportunitycostofproducingagoodissaidtohaveacomparativeadvantageinproducingthatgood ComparativeAdvantageandTrade Whohastheabsoluteadvantage Thefarmerortherancher Whohasthecomparativeadvantage Thefarmerortherancher Table3TheOpportunityCostofMeatandPotatoes ComparativeAdvantageandTrade TheRancher sopportunitycostofanounceofpotatoesis anounceofmeat whereastheFarmer sopportunitycostofanounceofpotatoesis anounceofmeat TheRancher sopportunitycostofapoundofmeatisonly4ouncesofpotatoes whiletheFarmer sopportunitycostofanounceofmeatisonly2ouncesofpotatoes so theRancherhasacomparativeadvantageintheproductionofmeatbuttheFarmerhasacomparativeadvantageintheproductionofpotatoes ComparativeAdvantageandTrade ComparativeAdvantageandTrade Comparativeadvantageanddifferencesinopportunitycostsarethebasisforspecializedproductionandtrade Wheneverpotentialtradingpartieshavedifferencesinopportunitycosts theycaneachbenefitfromtrade ComparativeAdvantageandTrade BenefitsofTradeTradecanbenefiteveryoneinasocietybecauseitallowspeopletospecializeinactivitiesinwhichtheyhaveacomparativeadvantage FYI TheLegacyofAdamSmithandDavidRicardo AdamSmithInhis1776bookAnInquiryintotheNatureandCausesoftheWealthofNations AdamSmithperformedadetailedanalysisoftradeandeconomicinterdependence whicheconomistsstilladheretotoday DavidRicardoInhis1816bookPrinciplesofPoliticalEconomyandTaxation DavidRicardodevelopedtheprincipleofcomparativeadvantageasweknowittoday APPLICATIONSOFCOMPARATIVEADVANTAGE ShouldTigerWoodsMowHisOwnLawn APPLICATIONSOFCOMPARATIVEADVANTAGE ShouldtheUnitedStatesTradewithOtherCountries Eachcountryhasmanycitizenswithdifferentinterests Internationaltradecanmakesomeindividualsworseoff evenasitmakesthecountryasawholebetteroff Imports goodsproducedabroadandsolddomesticallyExports goodsproduceddomesticallyandsoldabroad Summary Eachpersonconsumesgoodsandservicesprod