托马斯.A.普格尔-国际贸易-英语chap004.课件

1、Chapter 4Trade：Factor Availability and Factor Proportions Are KeyPRODUCTION WITH INCREASING MARGINAL COSTSincreasing marginal costs and the production-possibility curveWhat production possibilities curve look like under Increasing marginal costs? Increasing marginal cost: as one industry expands its

2、 production quantity, increasing amounts of other products must be given up to get each extra unit of the expanding industrys productIs it straight line as constant cost ?Figure 4.1 - Production Possibilities under Increasing Costs What production combination is actually chosen?Specialization on onl

3、y one product in constant cost case.It depends on the market price. Will it specialize on only one product under increasing marginal cost?Community indifference curvesIndifference curves: A schedule or curve that shows the various combinations of consumption quantities of products that give a consum

4、er the same level of well-being or happiness. What consumption combination is actually chosen?Depend on the budget constrain: income and pricesFigure 4.2 Indifference Curves Relating an Individuals Utility Levels to Consumption of Two Goods PRODUCTION AND CONSUMPTION TOGETHERWithout trade With trade

5、The gains from tradeFigure 4.3 Indifference Curves and Production Possibilities without TradeFigure 4.4 Two Views of Free Trade and Its EffectsThe gains from tradeCan you tell the gains of trade for both countries from figure 4.4?The gains from tradeTrade allows each country to consume at a point(C1

6、)that lies beyond its own possibility to produce; trade allows each country to achieve a higher community indifference curveA country gains more from trade if its terms of trade increase.Terms of trade: the ratio of the (average) price that a country receives from foreigners for its exports to the (

7、average) price that this country pays foreigners for its importsWhat determines the trade pattern ?Production conditional differConsumption conditional differSome combination of these two differencesHeckscher-Ohlin Theory of TradeLabor-abundant and Labor-intensiveThe H-O theory( or H-O-S theory)Labo

8、r-abundant: a relatively labor abundant country is a country that has a higher ratio of (nationally available) labor to (nationally available) other factors than does the rest of the world.e.g. Country A has 160 units of labor and 100 units of capital; country B has 120 units of labor and 80 units o

9、f capital. Which country is labor abundant country and which country is capital abundant country?Labor-intensive :A relatively labor-intensive product is a product for which labor costs are a greater share of its value than they are of the value of other productse.g. Country A and B has the same tec

10、hnology. To produce 1 unit of cloth needs 1 unit of capital and 3 units of labor while to produce 1 unit of food needs 2 units of capital and 2 units of labor. Which product is the labor-intensive and which is capital intensive? The H-O theory( or H-O-S theory)AssumptionTwo countries, two factor and

11、 two goods(2*2*2)The factor supplies are fixed for each country, full employed and mobile between sectors within each country, but immobile between countriesConsumption patterns of the two countries are identicalBoth countries share the same constant-returns-to-scale production technologiesusThe res

12、t of worldFactor price$1 for 1 unit of land;$2 for 1 unit of labor$4 for 1 unit of land;$1 for 1 unit of laborProduction functionto produce 1 unit of wheat needs 5 units of land and 1 unit of laborto produce 1 unit of cloth need 1 unit of land and 10 units of clothPriceP(wheat)= 5*1+1*2=7P(cloth)= 1

13、*1+10*2=21P(wheat)=5*4+1*1=21P(cloth)= 1*4+10*1=14tradeexport wheatExport clothHeckscher-Ohlin Theory of TradeA country will export products that use relatively intensively those production factors found relatively abundantly in the country, and import products that use relatively intensively those

14、production factors that are relatively scarce in the country.exercisesQ: China is relatively labor-abundant and Australia is relatively land-abundant. Production of textiles is relatively more labor-intensive than the production of wool. According to Heckscher-Ohlin (H-O) theory, Australia will have

15、:(1)a comparative advantage in textiles(2) an absolute advantage in textiles.(3)a comparative advantage in wool.(4)an absolute advantage in wool.Q: England is relatively labor-abundant and the United States is relatively land abundant. Food production is relatively land-intensive and umbrella produc

16、tion is relatively labor-intensive. H-O theory predicts (1)with increasing marginal costs of production, the United States can be expected to export umbrellas to England and import corn from England(2)with constant marginal costs of production, the United States will produce only corn and export corn to England and England will export umbrellas to the United States.(3)with constant marginal costs of production, Englan