凯伯 国际经济学 课后习题 答案 International.doc

International EconomicsChapter 11.Interdependence among todays economies reflects the historical evolution of the worlds economic and political order. Since World War II, Europe and Japan have reindustrialized. What is more, the formation of the European Community and the Organization of Petroleum Exporting Countries, as well as the rise of multinational corporations, has contributed to closer economic and political linkages.2.Proponents of an open trading system maintain that free trade leads to lower prices, the development of more efficient production methods, and a greater range of consumption choices. Free trade permits resources to move from their lowest productivity to their highest productivity. Critics of an open trading system maintain that import competition may displace domestic firms and workers. It is also argued that during periods of national emergency, it is in the best interests of a nation to protect strategic industries.3.For the United States, growing economic interdependence has resulted in exports and imports increasing as a share of national output. Profits of domestic firms and wages of domestic workers are increasingly being affected by foreign competition. Political and economic events play important roles for the operation of some sectors of the American economy, such as energy and agriculture.4.The volume of international trade is governed by factors including the level of domestic economic activity (e.g., prosperity versus recession) and restrictions imposed by countries on their imports.5.The chapter describes three fallacies of international trade:a. Trade is a zero sum activityb. Imports reduce employment and act as a drag on the economyc. Tariffs and quotas will save jobs and promote a higher level of employment 6.International competitiveness refers to the extent to which the goods of a firm or industry can compete in the marketplace; this competitiveness depends on the relative prices and qualities of products. No nation can be competitive in, and thus be a net exporter of everything. Because a nations stock of resources is limited, the ideal is for these resources to be used in their most productive manner. Nations will benefit from specialization and trade by exporting products having a comparative advantage.7.Researchers at the McKinsey Global Institute have found that global competitiveness is a bit like sports. You get better by playing against folks who are better than you. This means companies are exposed to intense global competition tend to be more productive than those who arent. 8. International trade benefits most workers, especially those in exporting industries. In addition to providing them jobs and income, it allows them to shop for consumption goods that are cheapest and of the highest quality. However, workers in import-competing industries often feel threatened from competition of cheap foreign labor.9. Among the challenges confronting the international trading system are maintaining fair standards for labor and promoting environmental quality.10. The threat of international terrorism tends to slow the degree of globalization and also make it become costlier. With terrorism, companies must pay more to insure and provide security for overseas staff and property. Heightened border inspections could slow shipments of cargo, forcing companies to stock more inventory. Tighter immigration policies could reduce the liberal inflows of skilled and blue-collar laborers that permitted companies to expand while keeping wages in check. Moreover, a greater preoccupation with political risk has companies greatly narrowing their horizons when making new investments.Chapter 21.Modern trade theory addresses the following questions: (1) What constitutes the basis for trade? (2) At what terms of trade do nations export and import certain products? (3) What are the gains from trade in terms of production and consumption?2.The mercantilists maintained that government should stimulate exports and restrict imports so as to increase a nations holdings of gold. A nation could only gain at the expense of other nations because not all nations could simultaneously have a trade surplus. Smith maintained that with free trade, international specialization of resources in production leads to an increase in world output which can be shared by both trading partners. All nations simultaneously can enjoy gains from trade in terms of production and consumption.3.Assume that by devoting all of its resources to the production of steel, France can produce 40 tons. By devoting all of its resources to televisions, France can produce 60 televisions. Comparable figures for Japan are 20 tons of steel and 10 televisions. In this example, France has an absolute advantage in the production of steel and televisions. France has a comparative advantage in televisions.4.Ignoring the role of demands impact on market prices, Smith and Ricardo maintained that a countrys competitive position is underlaid by cost conditions. Smiths trade theory is based on absolute costs, while comparative costs underlie Ricardos trade theory.5.The principle of comparative advantage can be explained in opportunity cost, which indicates the amount of one product that must be sacrificed in order to release enough resources to be able to produce one more unit of another product. The slope of the production possibilities curve (i.e., the marginal rate of transformation) indicates this rate of sacrifice. A nation facing a straight-line production possibilities curve produces under conditions of constant costs, while production under increasing costs refers to a bowed-out (i.e., concave) production possibilities curve.6.Constant opportunity costs refer to a situation where the cost of each additional unit of one product in terms of another product remains the same. Constant costs occur when resources are completely adaptable to alternative uses. Under increasing cost conditions, a nation must sacrifice more and more of one product to produce each additional unit of another product. Increasing costs occur when resources are not completely adaptable to alternative uses.7.Where a nation produces along its production possibilities curve in autarky affects the nations comparative costs under increasing cost conditions. This is because the slope of a bowed-out production possibilities curve, which indicates the marginal rate of transformation, varies at each point along the curve. Under conditions of constant costs, the production possibilities curve is a straight line. The marginal rate of transformation does not change in response to movements along the production possibilities curve.8.Under constant opportunity cost conditions, specialization is complete. A country can devote all of its resources to the production of a good without losing its comparative advantage. Under increasing cost conditions, specialization tends to be partial. As production costs rise with expanded production, the home country eventually loses its comparative advantage.9.Production gains from trade refer to the increased output of goods and services made possible by the international division of labor and specialization. Consumption gains from trade refer to the increased amount of goods made available to consumers as the result of international trade.10.The trade triangle includes a nations exports, its imports, and international terms of trade.11. The free trade argument maintains that international trade permits international division of labor and specialization and results in resources being transferred to their highest productivity. World output thus rises above autarky levels.12. a.Canadas MRT of steel into aluminum equals 1/3 ton of steel per ton of aluminum while Frances MRT of steel into aluminum equals 1 tons of steel per ton of aluminum. Canada specializes in the production of aluminum while France specializes in the production of steel. Complete specialization occurs in each country. The production gains from trade for the two countries total 500 tons of aluminum and 300 tons of steel.b.Lower limit, 1 ton of aluminum = 1/3 ton of steel; upper limit, 1 ton of aluminum = 1 tons of steel. The consumption gains from trade for Canada consist of 400 tons of aluminum and 200 tons of steel; the consumption gains from trade for France consist of 100 tons of aluminum and 100 tons of steel.c. Canadas trade triangle is bounded by 500 tons of aluminum (export), 500 tons of steel (import), and a term of trade equal to 1 ton of aluminum per ton of steel. Frances trade triangle is bounded by 500 tons of steel (export), 500 tons of aluminum (import), and a term of trade equal to 1 ton of steel per ton of aluminum.13. a.Concave production possibilities schedules are explained by increasing opportunity costs.b.Japans MRT of steel into autos equals 1/6 ton of steel per auto; South Koreas MRT of steel into autos equals 6 tons of steel per auto.c.Japan specializes in the production of autos while South Korea specializes in steel.d.With partial specialization, Japan produces 200 tons of steel and 1300 autos while South Korea produces 900 tons of steel and 400 autos. The production gains for the two countries combined total 400 tons of steel and 300 autos.e.Japans consumption gains from trade consist of 200 tons of steel and 200 autos; South Koreas consumption gains consist of 200 tons of steel and 100 autos.Chapter 31.The introduction of community indifference curves into the trade model permits two questions to be answered: (1) At what point on its production possibilities curve will a country choose to locate in the absence of trade? (2) At what point along the terms-of-trade line will a country choose in a trading situation?2.The marginal rate of transformation indicates the amount of a commodity that a nation must sacrifice in order to produce one more unit of a second commodity. The marginal rate of substitution indicates the amount of a commodity that a nation is willing to sacrifice in order to consume one additional unit of another commodity and realize the same level of total satisfaction.3.Under increasing cost conditions, the slope of a countrys production possibilities curve, which indicates the relative cost of one product in terms of another product, varies at each point along the curve. In autarky, a nation is in equilibrium when its community indifference curve is tangent to its production possibilities curve. Two nations having identical production possibilities curves, but different community indifference curves, would have different equilibrium points and therefore different price (cost) ratios for the two goods.4.The gains a country enjoys from free trade depend on the equilibrium terms of trade, which is determined by world supply and demand conditions. By recognizing only the role of supply, Ricardo was unable to determine the equilibrium terms of trade.5.The law of reciprocal demand suggests that if we know the domestic demands expressed by both trading partners for both products, the equilibrium terms of trade can be defined.6.Like domestic market prices, the international terms of trade are influenced by changes in world demand and supply conditions. Changes in factors such as tastes and income on the demand side and productivity on the supply side can induce changes in a countrys terms of trade.7.If a nation is to enjoy gains from trade, it must be able to sell its export product overseas at a higher price than could be obtained domestically.8.The commodity terms of trade considers the direction of the gains from trade by measuring the relationship between the prices a country gets for its exports and the prices it pays for its imports, over a given time period.9.The commodity terms of trade faces several limitations: (1) the problem of allowing for new commodities and changes in commodity quality, (2) the methods of valuing exports and imports, (3) the methods used to weigh the commodities in the index, and (4) making allowance for changes in productivity.10.Japans terms of trade equal 107 and show improvement. Canadas terms of trade equal 100 and does not change. Irelands terms of trade equal 88 and shows deterioration.11. For a large country, export biased growth leads to two opposing welfare effects: (1) worsening terms of trade, (2) rising national output. If the negative terms of trade effect more than outweighs the positive effect of increased output, national welfare decreases, and vice versa.12. Referring to question 11, immiserizing growth would occur if the negative terms of trade effect more than offset the positive effect of increased output. Export biased growth thus contributes to a reduction in domestic welfare.Chapter 41.Transportation costs affect the location of industry since firms recognize that transportation costs in addition to production costs affect profitability. A firm achieves its best location when it can minimize its total operating costs, including production and transportation costs. When adding transportation costs to the prices of traded goods, a nations volume of trade decreases.2.The factor endowment theory suggests that a capital-abundant nation enjoys relatively cheap capital. It thus specializes in and exports a capital-intensive good. This leads to increased demand for capital, which forces up the price of capital and thus the price of the capital-intensive good. The opposite occurs in the capital-scarce country. The basis for further specialization and trade ceases when the capital prices and product prices in each nation equate.3.The Heckscher-Ohlin theory emphasizes factor endowments as the basis for trade, while Ricardian theory stresses the role of labor productivity.4.The Heckscher-Ohlin theory reasons that exports of products embodying large amounts of relatively cheap, abundant factors makes those factors less abundant domestically. This leads to higher prices and thus an increased share of national income for these factors.5.The Leontief paradox questioned the applicability of the factor-endowment theory by concluding that the United States exported labor-intensive goods. This was the opposite conclusion that would be expected when applying the factor endowment theory to the United States.6.Linder maintains that the factor-endowment theory is valid for trade in primary products, but that the theory of overlapping demands best applies to trade in manufactured goods.7.There appears to be some empirical support for the product life cycle theory in the area of manufactured goods.8.Adam Smith recognized that the division of labor is limited by the size of the market; world trade can permit longer production runs for domestic manufacturers, which leads to increasing efficiency and increasing competitiveness.9.Interindustry trade refers to the exchange between nations of products of different industries. Intraindustry trade refers to two-way trade in a similar product. Among the determinants of intraindustry trade are: (a) overlapping demand segments in trading countries, (b) the extent to which domestic producers ignore minority consumer tastes, and (c) economies of scale associated with differentiated goods.10.Industrial policy refers to a governmental strategy intended to revitalize, improve, and/or develop an industry. Governmental policies intended to foster an industrys development include loan guarantees, research and development subsidies, low interest rate loans, trade protection, and the like. Creating comparative advantage requires the government to identify industries with the highest growth prospects. Problems of industrial policy include: (a) identifying growth oriented industries; (b) government policy makers may be unduly influenced by their voting constituents.11.Environmental regulations imposed on domestic producers lead to higher production costs and a decrease in competitiveness. Such regulation is a negative determinant on trade performance. Nations that impose more stringent and costly environmental regulations on their producers, relative to those abroad, tend to lessen their international competitiveness.12.Trade in business services is governed by factors such as: (a) employee skills and compensation levels, (b) a firms ability to organize its employees in a productive manner, (c) availability of capital equipment, and (d) potential for economies of scale made possible by a markets size.13.a.SwedenP = $15, Q = 600; NorwayP = $30, Q = 600. Sweden has the comparative advantage in calculators.b.P = $22.50 and 600 calculators are traded at that price. SwedenQs = 900, Qd = 300; NorwayQs = 300, Qd = 900.c.SwedenP = $20; NorwayP = $25. SwedenQs = 800, Qd = 400, Exports = 400; NorwayQs = 400, Qd = 800, Imports = 400.d.Prices do not equalize. Less specialization occurs. A smaller trade volume occurs.Chapter 51.A specific tariff is expressed as a fixed amount of money per unit of the imported product. An ad valorem tariff is a fixed percentage of the value of the imported product as it enters the country. A compound tariff combines a specific tariff and an ad valorem tariff.2.Two commonly used valuation concepts used by customs appraisers are the free-on-board technique and the cost-insurance-freight technique.3.When material inputs or intermediate products enter a country at a low duty while the final imported product is protected by a high duty, the nominal tariff rate on the final product overstates the effective rate of protection. The opposite also applies.4.Developing countries have argued