国际经济学习题 (7).doc

Chapter 8Resource Trade, Outsourcing, and Product Fragmentation55Chapter 8Resource Trade, Outsourcing, and Product FragmentationnSuggested Answers to Textbook Questions1According to equation 8.4, if the foreign country becomes more efficient in producing food(i.e., a*LF becomes smaller), the vertical intercept for the foreign country shifts upwards while the slope remains the same. If foreign labor becomes equally more efficient in producing both goods,the vertical intercept does not change.2.If the country was originally capital abundant such that the initial endowment ray would pass through point C, the country would initially produce goods 2 and 3 with good 2 being the labor-intensive good of the two. International fragmentation would result in the country producing good 3 andB with the new unit-value isoquant being 3BF1 (where B is slightly to the left of F on the solid line shown in figure 8.4). The resulting increase in the capital-labor ratio indicates an increase in the wage/renatl ratio.3.(a)If the world price of clothing is $2, then the home country can offer the footloose factor at most $2.25 and the foreign country can offer only $1.50. Therefore, the footloose factor is attracted to the home country. Thus, the home country produces both food and clothing and the foreign country produces only food. Wages are found from competitive profit conditions. They will be $1 in both countries.(b)If the world price of clothing rises to $8, then the home country can offer the footloose factor at most $3.50 and the foreign country can offer $4. Therefore, the footloose factor is attracted to the foreign country. Thus, the foreign country produces both food and clothing and the home country produces only food. Wages are found from competitive profit conditions. They will be $1 in both countries. Wages do not change as they are determined by the world price of food and each countrys productivity in food production, none of which have changed. If the foreign country becomes more efficient in the food sector, then wages must rise. At a fixed world-clothing price, the return to the footloose factor used in clothing production must then fall. Thus, the foreign country may lose the footloose factor, resulting in a loss of the clothing sector.nMultiple Choice Questions1.Footloose industries are generally characterized by(a)high skill requirements.(b)simple assembly.(c)imported raw materials.(d)all of the above.(e)(b) and (c).2.Developing countries tend to export products that(a)use a lot of capital.(b)use large amounts of natural resources.(c)have low value added per worker in the US.(d)are near the beginning of the product cycle.(e)none of the above.3.Innovative goods are generally(a)produced in low income countries.(b)produced using capital intensive technology.(c)mass produced.(d)produced with skilled labor.(e)produced in high income countries over the entire life of the product.Questions 49 refer to a situation where production is Ricardian in nature. Food is produced by labor alone, with the home country requiring 2 units of labor per unit of food and the foreign requiring only 1. Clothing is produced with labor and an international footloose factor. Both the home and foreign country require 1 unit of labor per unit of clothing. The home country requires 2 units of the footloose factor and the foreign requires 3 per unit of clothing. The world price of food is $1.4.Which of the following describes this situation?(a)The foreign country has comparative advantage in labor costs and the home country hasan absolute advantage in attracting the footloose input.(b)The foreign country has comparative advantage in labor costs and absolute advantagein attracting the footloose input.(c)The home country has a comparative advantage in labor costs and an absolute advantagein attracting the footloose input.(d)The home country has a comparative advantage in labor costs and the foreign country hasan absolute advantage in attracting the footloose input.(e)None of the above.5.If the world clothing price is $2, what is the most the home country can offer the footloose factor?(a)$0.50(b)$0.75(c)$1(d)$1.50(e)$1.756.If the world price of clothing is $2, and the footloose factor requires $0.50 to be attracted, then(a)neither country attracts the footloose factor.(b)home produces food and the foreign country produces both goods.(c)both countries produce some clothing.(d)home produces both goods and the foreign country produces food.(e)the home wage rate will be higher than the foreign.7.If the world price of clothing is $2, and the return to the fixed factor is $0.50, then the home wage rate will be(a)$1.00(b)$0.75(c)$0.50(d)$1.25(e)$1.508.If the world price of clothing rises from $2 to $3, and the return to the fixed factor remains at $0.50, then(a)wages in both countries will fall.(b)the amount that can be offered to the footloose factor will fall at home.(c)there will be no change in wages in either country.(d)the foreign country will be able to offer a greater return to the footloose factor.(e)the amount that can be offered to the footloose factor and wages will both rise at home.9.If home productivity in food rises to one unit of labor per 2 units of food, then at a world priceof clothing of $2,(a)the footloose factor will not be affected.(b)home wages will fall.(c)home production of clothing will expand.(d)the footloose factor will be attracted to the foreign country.(e)the home country can offer the footloose factor at most $0.25.10.Fragmentation of production is most evident by(a)production of services as opposed to goods(b)increases in intra-industry trade(c)increases in inter-industry trade(d)increased trade in intermediate goods(e)more industries being characterized by monopolistic competition11.Which of the following is an example of a service link associated with outsourcing?(a)transportation(b)insurance(c)communication(d)all of the above(e)none of the above12.Most service link areas tend to exhibit(a)increasing returns(b)decreasing returns(c)constant returns(d)high variable costs(e)no fixed costs13.Outsourcing will become more prevelant as(a)coordination costs tend to rise as output increases(b)reductions in average costs increasingly exceed coordination costs(c)in industries characterized by decreasing returns(d)marginal costs rise due to increased product fragmentation(e)none of the above14.Outsourcing has become more common in recent years due to(a)reductions in the cost of service link activities(b)reductions in wages in less developed countries(c)increases in barriers to trade(d)higher costs of capital in advanced countries(e)the amount of outsourcing has remained stable for decades15.Which of the following increased the fastest in the 1990s?(a)world GDP(b)world trade(c)trade in parts and components(d)intra-industry trade(e)all of the above have increased at a similar rate16.Firms consider which of the following when deciding whether to outsource part of production?(a)relative wages(b)infrastructure(c)relative productivity(d)all of the above(e)none of the above17.Inputs that are internationally mobile will seek to be used in countries where(a)costs are low(b)returns are maximized(c)productivity is low(d)they have a comparative advantage(e)increasing returns exist18.Which of the following statements best describes the status of outsourcing in the US?(a)economists generally agree that outsourcing has reduced average wages of US workers(b)economists generally agree that outsourcing has led to a net de