国际经济学(英文)课件CHAPTER5

1、国际经济学(英文)课件CHAPTER5国际经济学(英文)课件CHAPTER5Complementary Theories for H-O TheoryEconomies of ScaleImperfect CompetitionDifferences in Dynamic Changes in Technology among NationsTransportation Costs and Environmental Standards Practical Basis of Todays International TradeNew International Trade Theory2Cha

2、pter 5Complementary Theories OutlineH-O Model and New Trade TheoriesEconomies of Scale and International TradeImperfect Competition and International TradeTrade Based on Dynamic Technological DifferencesCosts of Transportation, Environmental Standards and International Trade3Chapter 5OutlineH-O Mode

3、l and New Trade 5.1 The H-O Model and New Trade Theories1. There are two nations (Nation 1 and 2), two commodities (commodity X and Y), and two factors of production (labor and capital).2. Both nations use the same technology in production. Relaxing assumptions of H-O model and NTT Technology gap an

4、d product cycle model4Chapter 5 5.1 The H-O Model and Relaxing Assumptions3. Commodity X is labor intensive and commodity Y is capital intensive in both nations.4. Both commodities are produced under constant returns to scale in both nations.No factor-intensity reversalEconomies of scale and interna

5、tional trade 5Chapter 5Relaxing Assumptions3. CommodiRelaxing Assumptions5. There is incomplete specialization in production in both nations.6. Tastes are equal in both nations.7. There is perfect competition in both commodities and factor markets in both nations. The theory of intra-industry trade6

6、Chapter 5Relaxing Assumptions5. There iRelaxing Assumptions8. There is perfect factor mobility within each nation ( Internal factor mobility) but no international factor mobility.9. There are no transportation costs, tariffs, or other obstructions to the free flow of international trade. Only modify

7、 H-O theory (reduce the volume and benefits of international trade)7Chapter 5Relaxing Assumptions8. There iRelaxing Assumptions10. All resources are fully employed in both nations.11. International trade between the two nations is balanced. If unutilized the H-O theory could incorrectly predict the

8、pattern of trade8Chapter 5Relaxing Assumptions10. All reConclusionsRelaxing most assumptions only modifies but does not invalidate the H-O theoryInternational trade that H-O theory leaves unexplained calls for new theories9Chapter 5ConclusionsRelaxing most assum5.2 Economies of Scale and Internation

9、al TradeDefinition Increasing Returns to ScaleIllustrationFurther ExplanationsExternal Economies10Chapter 55.2 Economies of Scale 5.2.1 DefinitionIncreasing Returns to Scale refers to the production situation where output grows proportionately more than the increase in inputs or factors of productio

10、n. Economies of Scale If all inputs are doubled, output is more than doubled.Why?11Chapter 55.2.1 DefinitionIncreasing RetExplanation for Economies of ScaleAt a larger scale of operationEach worker can specialize in performing a simple repetitive taskIntroduction of more specialized and productive m

11、achinery Whats the figure of production frontier?Convex from the origin12Chapter 5Explanation for Eco FIGURE 5-1 Mutually Beneficial Trade Based on Economies of Scale. 5.2.2 Illustration (P169) Assumption: two nations are identical in every respect A : Equilibrium point in both nations in Autarky PA

12、 : No-trade equilibrium-relative commodity price in both nations B and B : Points of complete specialization in nation 1 and nation 2 E : Point of final consumption in both nations (Both gain 20X and 20 Y) 60X 60Y(same supply and demand)13Chapter 5 FIGURE 5-1 Mutually 5.2.3 Further ExplanationThe Pa

13、ttern of specialization is not absolute and may result from historical accidentWith economies of scale the two nations need not be identical in every respectIf economies of scale persist over a sufficiently long range of outputs, monopoly or oligopoly will occurInternational Economies of Scale See C

14、ase Study 6-1 (P170)14Chapter 55.2.3 Further ExplanationThe PKey TermsMonopolyOligopoly A single producer of a commodity for which there is no substitute A few producer of a homogeneous or differentiated product15Chapter 5Key TermsMonopoly A single pr5.2.4 External EconomiesExternal Economies refer

15、to the reduction in each firms average costs of production as the entire industry output expandsEconomies of Scale refer to the reduction in the average costs of production as the firms output expands A Different Term from Economies of Scale16Chapter 55.2.4 External EconomiesExternHypothesis about E

16、conomies of Scale S. B. Linder An Essay on Trade and Transformation (1961) Opinions of Preference Similarity or Overlapping Demands Hypothesis A nation should export those manufactured products for which a large domestic market exists and import those products that appeal to its low- and high-income

17、 minorities.Conclusion Trade in manufactures is likely to be largest among countries with similar tastes and income levels.17Chapter 5Hypothesis about Economies of 5.3 Imperfect Competition and International TradeTrade Based on Product DifferentiationMeasuring Intra-Industry TradeFormal Model of Int

18、ra-Industry TradeAnother Version of the Model18Chapter 55.3 Imperfect Competition 5.3.1 Trade Based on Product Differentiation Intra-Industry tradeHomogeneous Products Differentiated ProductsInter-Industry trade See Case Study 6-2 (P172)Take advantage of economies of scale in production to keep unit

19、 costs low and benefit consumers with more choicesIntra-industry trade model19Chapter 55.3.1 Trade Based on Interesting Considerations 1.Comparing with the H-O TheoryThe H-O theory predict that trade based on comparative advantage is likely to be larger when the difference in factor endowments among

20、 nations greaterIntra-industry trade is likely to be larger among industrial economies of similar size and factor proportions.Difference 1:Basis for Trade20Chapter 5Interesting Considerations Interesting Considerations 1.Comparing with the H-O TheoryThe H-O model predicts that inter-industry trade w

21、ill lower the return of the nations scarce factorWith intra-industry trade based on economies of scale it is possible for all factors to gainDifference 2:Gains from TradeDifferent Attitude of Interest Groups21Chapter 5Interesting Considerations Interesting Considerations 1.Comparing with the H-O The

22、oryIntra-industry trade is related to the sharp increase in international trade in parts or components of a productIt utilizes each nations comparative advantage to minimize total costsRelationThe intra-industry trade model is an extension of the basis H-O model to modern production conditions22Chap

23、ter 5Interesting Considerations Interesting Considerations 2. About Relative Commodity PricesWith differentiated products produced under economies of scale, pre-trade-relative commodity prices may no longer accurately predict the pattern of trade.Large Country & Small Country23Chapter 5Interesting C

24、onsiderations ConclusionsThe comparative advantage determines the pattern of inter-industry trade, while economies of scale in differentiated products give rise to intra-industry tradeA great deal of intra-industry trade is in fact consistent with trade based on differences in factor endowments and

25、comparative costsInter-industry trade reflects natural comparative advantage while inter-industry trade reflects acquired comparative advantage24Chapter 5ConclusionsThe comparative adv5.3.2 Measuring Intra-Industry TradeT = 1 (0，1) X: The value of exports of a particular industry or commodity group

26、M: The value of imports of a particular industry or commodity groupIntra-Industry trade IndexXMXMT=0 when there is no intra-industry tradeT=1 when the exports and imports of a good are equal (intra-industry trade is maximum)See Case Study 6-3 (P175)How to define the industry?25Chapter 55.3.2 Measuri

27、ng Intra-Industry5.3.3 Formal Model of Intra-Industry TradeWith Intra-Industry Trade Differentiated Products Economies of ScaleMonopolistic Competition Production and pricing under monopolistic competitionModelMarket Organization26Chapter 55.3.3 Formal Model Definition Monopolistic Competition A for

28、m of market organization where there are many firms selling a differentiated product and entry into or exit from the industry is easy27Chapter 5Definition MonopolisticFIGURE 5-2 Production and Pricing Under Monopolistic Competition.(Fairly Elastic)AC is downward sloping because of the economies of s

29、caleThe firm reachs the best level of output where MR=MCThe firm breaks even at point A See P17628Chapter 5FIGURE 5-2 Production and Pric Conclusions Relationship between the two patterns of tradeWhen products are homogeneous, we have only inter-industry tradeWhen products are differentiated, we hav

30、e both inter- and intra-industry tradeThe more similar nations are in factors endowments and technology, the smaller is the importance of inter-relative to intra-industry trade29Chapter 5 Conclusions Rela5.3.4 Another Version of the Model P177FIGURE 5-3 Monopolistic Competition and Intra-Industry Tr

31、ade.Negative relationship between N and P because of competitionPositive relationship between N and AC for a given level of industry outputE : Long-run equilibrium point where each firm breaks even in Autarky E : New long-run equilibrium point with international tradeAfter Trade (economies of Scale)

32、30Chapter 55.3.4 Another Version of the M5.4 Trade Based on Dynamic Technological Differences Dynamic Extension of H-O ModelTechnological Gap ModelProduct Cycle ModelIllustration31Chapter 55.4 Trade Based on Dynamic TeTechnological Gap Model M.V Posner (1961) Opinion A great deal of the trade among

33、industrialized countries is based on the introduction of new products and new production processes. These give the innovating firm and nation a temporary monopoly in the world market that is often based on patents and copyrights, which are granted to stimulate the flow of inventions. Shortcomings No

34、 explanation of the size and the reason of the gaps, and how they are eliminated over time Emphasize the time lag in the imitation process32Chapter 5Technological Gap Model Product cycle mode Vernon(1966) When a new product is introduced, it usually requires highly skilled labor to produce As the pr

35、oduct matures and acquires mass acceptance, it becomes standardized and can then be produced by mass production techniques and less skilled labor Comparative advantage in the product shifts from the advanced nation that originally introduced it to less advanced nations, where labor is relatively che

36、aper This may be accompanied by foreign direct investments from the innovating nation to nations with cheaper labor.33Chapter 5Product cycle mode Conclusions for Product Cycle ModelEmphasize the standardization processThe most highly industrialized economies are expected to export non-standardized p

37、roducts embodying new and more advanced technologies and import products embodying old or less advanced technologies.It explains dynamic comparative advantage for new products and new production processes.34Chapter 5Conclusions for Pr Illustration of the product Cycle ModelFIGURE 5-4 The Product Cyc

38、le Model.New-product phaseProduct-growth phaseProduct-maturity phase (Brand Competition)Product-decline phase (Price Competition)Case Study 6-4 (P182)35Chapter 5 Illustration of the product C5.5 Costs of Transportation, Environmental Standards and International TradeTransportation CostsEnvironmental

39、 Standards Definition, Effect on Industry Location and International trade36Chapter 55.5 Costs of Transportation, 5.5.1 Transportation Costs Definition Transportation Costs include all the costs of transferring goods from one location (nation) to anotherFreight chargesCosts of loading and unloadingW

40、arehousing costsInsurance premiumsInterest charges while goods are in transit Non-traded Goods and Services Transport costs exceed price differences across nationsCase Study 6-5 (P184)37Chapter 55.5.1 Transportation Costs DefFIGURE 6-5 Partial Equilibrium Analysis of Transport Costs.E : Equilibrium point for both nations in Autarky In absence of transport costs : PX =$8 in both nations, 60X are traded With transport costs of $2 per unit : PX1 =$7, PX2 =$9, 40X are tradedIllustration P18538Chapt