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Theworldhasalong,richhistoryofinternationaltradeamongnationsthatcanbetracedbacktoearlyAssyrian,Babylonian,Egyptian,andPhoeniciancivilizations.Theseandotherearlycivilizationsrecognizedthattradecanbetieddirectlytoanimprovedqualityoflifeforthecitizensofallthepartners.Today,thepracticeoftradeamongnationsisgrowingbyleapsandbounds.Thereishardlyapersononearthwhohasnotbeeninfluencedinsomewaybythegrowingtradeamongnations.Oneofthemostlogicalquestionstoaskis,whydomoderncountriestradewithoneanother?Therearenumerousreasonsthatcountriesengageininternationaltrade.Somecountriesaredeficientincriticalrawmaterials,suchaslumberoroil.Tomakeupforthesevariousdeficiencies,countriesmustengageininternationaltradetoobtaintheresourcesnecessarytoproducethegoodsand/orservicesdesiredbytheircitizens.Inadditiontotradingforrawmaterials,nationsalsoexchangeawidevarietyofprocessedfoodsandfinishedproducts.PartⅠTheKnowledgeofInternationalTrade(Ⅰ)下一页返回Eachcountryhasitsownspecialtiesthatarebasedonitseconomyandtheskillsofitscitizens.Threecommonspecialtyclassificationsarecapital,labor,andland.Capital-intensiveproducts,suchascarsandtrucks,heavyconstructionequipment,andindustrialmachinery,areproducedbynationsthathaveahighlydevelopedindustrialbase.Japanisanexampleofahighlydevelopedindustrialnationthatproduceslargequantitiesofhigh-qualitycarsforexportaroundtheworld.AnotherreasonJapanhasadaptedtoproducingcapital-intensiveproductsisthatitisanislandnation;thereislittlelandavailableforland-intensiveproductproduction.Labor-intensivecommodities,suchasclothing,shoes,orotherconsumergoods,areproducedincountriesthathaverelativelylowlaborcostsandrelativelymodernproductionfacilities.China,Indonesia,andthePhilippinesareexamplesofcountriesthatproducemanylabor-intensiveproducts.Productsthatrequirelargetractsofland,suchascattleproductionandwheatfarming,areexamplesofland-intensivecommodities.PartⅠTheKnowledgeofInternationalTrade(Ⅰ)上一页下一页返回Countriesthatdonothavelargetractsoflandnormallypurchaseland-intensiveproductsfromcountriesthatdohavevastamountsofsuitableland.TheUnitedStates,forexample,isoneoftheleadingexportersofwheat.Thecombinationofadvancedfarmingtechnology,skilledfarmers,andlargetractsofsuitablefarmlandintheMidwestandtheGreatPlainsmakesthemassproductionofwheatpossible.Overtimeanation’sworkforcewillchange,andthusthegoodsandservicesthatnationproducesandexportswillchange.Nationsthattraintheirworkersforfuturerolescanminimizethedifficultyofmakingatransitiontoanew,dominantmarket.TheUnitedStates,forexample,wasthedominantworldmanufacturerfromtheendofWorldWarIIuntiltheearly1970s.But,beginninginthe1970s,othercountriesstartedtoproducefinishedproductsmorecheaplyandefficientlythantheUnitedStates,causingU.S.manufacturingoutputandexportstodropsignificantly.However,rapidgrowthincomputertechnologybegantoprovideamajorexportfortheUnitedStates.PartⅠTheKnowledgeofInternationalTrade(Ⅰ)上一页下一页返回Practicallyspeaking,theUnitedStateshasbeenslowlytransformedfromamanufacturing-basedeconomyintoanewInformationAge-basedeconomythatreliesonexportingcutting-edgetechnologyashightechsoftwareandcomputercompaniesproliferate.PoliticalEnvironmentEachcountryvariesregardinginternationaltradeandrelocationofforeignplantsonitsnativesoil.Somecountriesopenlycourtforeigncompaniesandencouragethemtoinvestintheircountrybyofferingreducedtaxesorsomeotherinvestmentincentives.Othercountriesimposestrictregulationsthatcancauselargecompaniestoleaveandopenaplantinacountrythatprovidesmorefavorableoperatingconditions.Whenacompanydecidestoconductbusinessinanothercountry,itshouldalsoconsiderthepoliticalstabilityofthehostcountry’sgovernment.Unstableleadershipcancreatesignificantproblemsinrecoupingprofitsifthegovernmentfallsofthehostcountryand/orchangesitspolicytowardsforeigntradeandinvestment.Politicalinstabilityisoftencausedbysevereeconomicconditionsthatresultincivilunrest.PartⅠTheKnowledgeofInternationalTrade(Ⅰ)上一页下一页返回Anotherkeyaspectofinternationaltradeispayingforaproductinaforeigncurrency.Thispracticecancreatepotentialproblemsforacompany,sinceanycurrencyissubjectedtopricefluctuation.Acompanycouldlosemoneyifthevalueoftheforeigncurrencyisreducedbeforeitcanbeexchangedintothedesiredcurrency.Anotherissueregardingcurrencyisthatsomenationsdonothavethenecessarycash.Instead,theyengageincountertrade,whichinvolvesthedirectorindirectexchangeofgoodsforothergoodsinsteadofforcash.Countertradefollowsthesameprinciplesasbartering,apracticethatstretchesbackintoprehistory.Acarcompanymighttradenewcarstoaforeigngovernmentinexchangeforhigh-qualitysteelthatwouldbemorecostlytobuyontheopenmarket.Thecompanycanthenusethesteeltoproducenewcarsforsale.Inamoreextremecase,somecountriesdonotwanttoengageinfreetradewithothernations,achoiceknownasself-sufficiency.Therearemanyreasonsforthischoice,butthemostimportantistheexistenceofstrongpoliticalbeliefs.PartⅠTheKnowledgeofInternationalTrade(Ⅰ)上一页下一页返回Forexample,theformerSovietUnionanditscommunistalliestradedonlywitheachotherbecausetheSovietUnionfearedthatWesterncountrieswouldattempttocontroltheirgovernmentsthroughtrade.Self-sufficiencyallowedtheSovietUnionanditsalliestoavoidthatpossibility.However,theseself-imposedtraderestrictionscreatedashortageofproductsthatcouldnotbeproducedamongthegroup,makingtheoverallqualityoflifewithintheSovietblocsubstantiallylowerthanintheWestsinceconsumerdemandcouldnotbemet.WhentheBerlinWallcamedown,tradewiththeWestwasresumed,andtheshortageofproductswasreducedoreliminated.EconomicEnvironmentAnimportantfactorinfluencinginternationaltradeistaxes.Ofthedifferenttaxesthatcanbeappliedtoimportedgoods,themostcommonisatariff,whichisgenerallydefinedasanexcisetaximposedonimportedgoods.Acountrycanhaveseveralreasonsforimposingatariff.Forexample,arevenuetariffmaybeappliedtoanimportedproductthatisalsoproduceddomestically.Theprimaryreasonforthistypeoftariffistogeneraterevenuethatcanbeusedlaterbythegovernmentforavarietyofpurposes.PartⅠTheKnowledgeofInternationalTrade(Ⅰ)上一页下一页返回Thistariffisnormallysetatalowlevelandisusuallynotconsideredathreattointernationaltrade.Whendomesticmanufacturersinaparticularindustryareatadisadvantage,vis-à-visimports,thegovernmentcanimposewhatiscalledaprotectivetariff.Thistypeoftariffisdesignedtomakeforeignproductsmoreexpensivethandomesticproductsand,asaresult,protectdomesticcompanies.Aprotectivetariffisnormallyverypopularwiththeaffecteddomesticcompaniesandtheirworkersbecausetheybenefitmostdirectlyfromit.Inretaliation,acountrythatisaffectedbyaprotectivetariffwillfrequentlyenactatariffofitsownonaproductfromtheoriginaltariffenactingcountry.In1930,forexample,theU.S.CongresspassedtheSmoot-HawleyTariffAct,whichprovidedthemeansforplacingprotectivetariffsonimports.TheUnitedStatesimposedthisprotectivetariffonawidevarietyofproductsinanattempttohelpprotectdomesticproducersfromforeigncompetition.ThislegislationwasverypopularintheUnitedStates,becausetheGreatDepressionhadjustbegun,andthetariffwasseenashelpingU.S.workers.PartⅠTheKnowledgeofInternationalTrade(Ⅰ)上一页下一页返回However,thetariffcausedimmediateretaliationbyothercountries,whichimmediatelyimposedprotectivetariffsoftheirownonU.S.products.Asaresultoftheseprotectivetariffs,worldtradewasseverelyreducedfornearlyallcountries,causingthewealthofeachaffectednationtodrop,andincreasingunemploymentinmostcountries.Realizingthatthe1930tariffswereamistake,CongresstookcorrectiveactionbypassingtheReciprocalTradeAgreementsActof1934,whichempoweredthepresidenttoreducetariffsby50percentongoodsfromanyothercountrythatwouldagreetosimilartariffreductions.Thegoalwastopromotemoreinternationaltradeandhelpsestablishmorecooperationamongexportingcountries.Anotherformofatradebarrierthatacountrycanemploytoprotectdomesticcompaniesisanimportquota,whichstrictlylimitstheamountofaparticularproductthataforeigncountrycanexporttothequota-enactingcountry.Forexample,theUnitedStateshadthreatenedtolimitthenumberofcarsimportedfromJapan.However,Japanagreedtovoluntaryexportquotas,formallyknownas“voluntaryexportrestrictions,”toavoidU.S.imposedimportquotas.PartⅠTheKnowledgeofInternationalTrade(Ⅰ)上一页下一页返回Thepowerofimportquotashasdiminishedbecauseforeignmanufacturershavestartedbuildingplantsinthecountriestowhichtheyhadpreviouslyexportedinordertoavoidsuchregulations.Agovernmentcanalsouseanontariffbarriertohelpprotectdomesticcompanies.Anontariffbarrierusuallyreferstogovernmentrequirementsforlicenses,permits,orsignificantamountsofpaperworkinordertoallowimportsintoitscountry.Thistacticoftenincreasesthepriceoftheimportedproduct,slowsdowndelivery,andcreatesfrustrationfortheexportingcountry.Theendgoalisthatmanyforeigncompanieswillnotbothertoexporttheirproductstothosemarketsbecauseoftheaddedcostandaggravation.JapanandseveralEuropeancountrieshavefrequentlyusedthisstrategytolimitthenumberofimportedproducts.PartⅠTheKnowledgeofInternationalTrade(Ⅰ)上一页返回CulturalEnvironmentBeforeacorporationbeginsexportingproductstoothercountries;itmustfirstexaminethenorms,taboos,andvaluesofthosecountries.Thisinformationcanbecriticaltothesuccessfulintroductionofaproductintoaparticularcountryandwillinfluencehowitissoldand/ormarketed.Suchinformationcanpreventculturalblunders,suchastheoneGeneralMotorscommittedwhentryingtosellitsChevyNovainSpanish-speakingcountries.Nova,inSpanish,means“doesn’tgo”—andfewpeoplewouldpurchaseacarnamed“doesn’tgo.”Thismarketingerror—resultingsimplyfromignoranceoftheSpanishlanguage—costGeneralMotorsmillionsininitialsales—aswellasconsiderableembarrassment.BusinessprofessionalsalsoneedtobeawareofforeigncustomsregardingstandardbusinessPractice.Forexample,peoplefromsomecountriesliketositorstandveryclosewhenconductingbusiness.Incontrast,peoplefromothercountrieswanttomaintainaspatialdistancebetweenthemandthepeoplewithwhomtheyareconductingbusiness.Thus,beforebusiness-peopletraveloverseas,theymustbegiventrainingonhowtoconductbusinessinthecountrytowhichtheyaretraveling.PartⅡTheKnowledgeofInternationalTrade(Ⅱ)下一页返回Businessprofessionalsalsorunintoanotherpracticethatoccursinsomecountries—bribery.Thepracticeofbriberyiscommoninseveralcountriesandisconsideredanormalbusinesspractice.Ifthebribeisnotpaidtoabusinesspersonfromacountrywherebriberyisexpected,atransactionisunlikelytooccur.Lawsinsomecountriesprohibitbusinesspeoplefrompayingoracceptingbribes.Asaresult,navigatingthislegalandculturalthicketmustbedoneverycarefullyinordertomaintainfullcompliancewiththelaw.PhysicalEnvironmentOtherfactorsthatinfluenceinternationaltradingactivitiesarerelatedtothephysicalenvironment.Naturalphysicalfeatures,suchasmountainsandrivers,andhuman-madestructures,suchasbridgesandroads,canhaveanimpactoninternationaltradingactivities.Forexample,alargenumberofpotentialcustomersmayliveinacountrywherenaturalphysicalbarriers,suchasmountainsandrivers,makegettingtheproducttomarketnearlyimpossible.PartⅡTheKnowledgeofInternationalTrade(Ⅱ)上一页下一页返回WorldTradeOrganizationsandAgreementsAfterWorldWarII,theworld’sleadingnationswantedtocreateapermanentorganizationthatwouldhelpfosterworldtrade.Suchanorganizationcameintobeingin1947whenrepresentativesfromtheUnitedStatesandtwenty-threeothernationssignedthedocumentcreatingtheGeneralAgreementonTariffsandTrade(GATT),whichnowincludesmorethanonehundredcountriesassignatories.ThethreefoldpurposeofGATTwasto(1)fosterequal,nondiscriminatorytreatmentforallmembernations;(2)promotethereductionoftariffsbymultilateralnegotiations;and(3)fostertheeliminationofimportquotas.GATTnationsmeetperiodicallytoreviewprogresstowardestablishedobjectivesandtosetnewgoalsthatmembercountrieswanttoachieve.ThegoalsandobjectivesofGATTvaryandchangeovertimeastradeissuesevolvebasedondomesticandworldeconomies.PartⅡTheKnowledgeofInternationalTrade(Ⅱ)上一页下一页返回Likewise,representativesfromBelgium,Denmark,France,Germany,Greece,Ireland,Italy,Luxembourg,theNetherlands,Portugal,Spain,andtheUnitedKingdomcametogethertoformtheEuropeanEconomicCommunity(EEC)—sometimescalledtheCommonMarket—in1958.ThepurposeoftheEECwastocreateequalandfairtariffsforallofthenationsintheorganizationsothattradecouldflourishinEurope.TheEEChasgenerallybeenregardedassuccessful.TheUnitedStatesandCanadasignedtheU.S.CanadianFreeTradeAgreementin1989,whichprovidedfortheremovalofalltradebarriersbetweenthetwocountries—suchastariffs,quotas,orothertraderestrictions—withinaten-yearperiod.Thisacthelpedpromoteevenmoretradebetweenthetwocountries,thusfurtherstrengtheninganalreadystrongtraderelationship.TheUnitedStates,Canada,andMexicosignedtheNorthAmericanFreeTradeAgreement(NAFTA)in1994inordertocreateafree-tradezoneamongthethreecountries.LeadersofthesethreecountriesrealizedthatalargeNorthAmericanfree-tradezonecouldcompeteeffectivelyagainsttheEECandothertradingblocsthatmightdevelopinthefuture.PartⅡTheKnowledgeofInternationalTrade(Ⅱ)上一页下一页返回Thiscompetitivefactorwasadrivingforceinthenations’signingoftheagreement,eachbelievingthat,overthelongrun,allthreewouldbenefitfromtheagreement.Inadditiontofeelingtheimpactoftradeagreementsandtradeorganizationsperse,internationaltradeisaffectedmoreindirectlybythefinancialstabilityandgeneraleconomicwell-beingofallcountriesinourincreasinglyinterconnectedworld.Thustwootherinternationalorganizationsultimatelyaffectthehealthofworldtrade.Tofurtherpromotetradeamongcountries,theAlliednationsofWorldWarIImetin1944inBrettonWoods,NewHampshire,tohelpsetpostwarglobalfinancialpoliciesandtherebyavoidfuturefinancialcrises.TheInternationalMonetaryFund(IMF)wascreatedasaresultofthatconference,itsmissionbeingtoprovideloanstocountriesthatareinfinancialtrouble.TheIMFdictatesthetermsoftheloans,whichmayincludecuttingdomesticsubsidies,privatizinggovernmentindustries,andmoderatingtradepolicies.PartⅡTheKnowledgeofInternationalTrade(Ⅱ)上一页下一页返回Tofundtheseloans,IMFmembersmakeannualcontributions,witheachcountry’scontributiondeterminedbyitssize,nationalincome,population,andvolumeoftrade.Largercontributingcountries,suchasBritainandtheUnitedStates,havemoresayastowhatcountriesgetloansandthetermsoftheloan.TheWorldBank,withapproximately157members,isanotherinternationalorganizationtowhichtheUnitedStatesisamajorcontributor.TheWorldBank’smissionistohelplessdevelopedcountriesachieveeconomicgrowththroughimprovedtrade.Itdoessobyprovidingloansandguaranteeingorinsuringprivateloanstonationsinneedoffinancialassistance.TheWorldBankhasbeencharacterizedas(1)alast-resortlender,(2)afacilitatorofdevelopmentprojectssoastoencouragetheinflowofprivatebankingfunds,and(3)aprovideroftechnicalassistanceforfosteringlong-termeconomicgrowth.PartⅡTheKnowledgeofInternationalTrade(Ⅱ)上一页下一页返回Theworldhasalonghistoryofinternationaltrade.Infact,tradingamongnationscanbetracedbacktotheearliestcivilizations.Tradingactivitiesaredirectlyrelatedtoanimprovedqualityoflifeforthecitizensofnationsinvolvedininternationaltrade.Itissafetosaythatnearlyeverypersononearthhasbenefitedfrominternationaltradingactivities.PartⅡTheKnowledgeofInternationalTrade(Ⅱ)上一页返回Aquotationisapromisetosupplygoodsonthetermsstarted.It,however,isnotlegallybindingasafirmofferifthesellerdecidesnottosell.(Quotation)DearSirs,WethankyouforyourenquiryofAugust22andarepleasedtosendyouourquotationforthegoodsyourequiredasfollow:Commodity:“WhiteRabbit”BrandWoolenMixedBlanketNo.33.Size:74×84inWeight:4lbsColor:yellow,brown,greenassortmentQuantity:1,000pcs.Price:US$40.00perpieceCIFMontréalShipment:OctoberWritingSkillⅠQuotationandReply下一页返回Youarecordiallyinvitedtotakeadvantageofthisattractivequotation.WeareanticipatingalargeorderfromtheUnitedStates,andthatwillcauseasharpriseinprice.Welookforwardtoreceivingyourorder.Yoursfaithfully,WritingSkillⅠQuotationandReply上一页返回Severaldifferentmodelshavebeenproposedtopredictpatternsoftradeandtoanalyzetheeffectsoftradepoliciessuchastariffs.RicardianModelThePanamaCanalisimportantforinternationalseatradebetweentheAtlanticOceanandthePacificOcean.TheRicardianmodelfocusesoncomparativeadvantageandisperhapsthemostimportantconceptininternationaltradetheory.InaRicardianmodel,countriesspecializeinproducingwhattheyproducebest.Unlikeothermodels,theRicardianframeworkpredictsthatcountrieswillfullyspecializeinsteadofproducingabroadarrayofgoods.Also,theRicardianmodeldoesnotdirectlyconsiderfactorendowments,suchastherelativeamountsoflaborandcapitalwithinacountry.ThemainmeritofRicardinmodelisthatitassumestechnologydifferencesbetweencountries.TechnologygapiseasilyincludedintheRicardianandRicardo-Sraffamodel(Seethenextsubsection).TheRicardianmodelmakesthefollowingassumptions:1.Laboristheonlyprimaryinputtoproduction(laborisconsideredtobetheultimatesourceofvalue).PartⅢInternationalTradeModels(Ⅰ)下一页返回2.ConstantMarginalProductofLabor(MPL)(Laborproductivityisconstant,constantreturnstoscale,andsimpletechnology.)3.Limitedamountoflaborintheeconomy4.Laborisperfectlymobileamongsectorsbutnotinternationally.5.Perfectcompetition(price-takers).TheRicardianmodelmeasuresintheshort-run,thereforetechnologydiffersinternationally.Thissupportsthefactthatcountriesfollowtheircomparativeadvantageandallowsforspecialization.ModernDevelopmentoftheRicardianModelTheRicardiantrademodelwasstudiedbyGraham,Jones,McKenzieandothers.Allthetheoriesexcludedintermediategoods,ortradedinputgoodssuchasmaterialsandcapitalgoods.McKenzie(1954),Jones(1961)andSamuelson(2001)emphasizedthatconsiderablegainsfromtradewouldbelostonceintermediategoodswereexcludedfromtrade.InafamouscommentMcKenzie(1954,p.179)pointedthat“Amoment’sconsiderationwillconvinceonethatLancashirewouldbeunlikelytoproducecottonclothifthecottonhadtobegrowninEngland.”PartⅢInternationalTradeModels(Ⅰ)上一页下一页返回Recently,thetheorywasextendedtothecasethatincludestradedintermediates.Thusthe“laboronly”assumptionwasremovedfromthetheory.ThusthenewRicardiantheory,ortheRicardo-Sraffamodel,asitissometimesnamed,theoreticallyincludescapitalgoodssuchasmachinesandmaterials,whicharetradedacrosscountries.Inthetimeofglobaltrade,thisassumptionismuchmorerealisticthantheHeckscher-Ohlinmodel,whichassumesthatcapitalisfixedinsidethecountryanddoesnotmoveinternationally.Heckscher-OhlinModelIntheearly1900saninternationaltradetheorycalledfactorproportionstheoryemergedbytwoSwedisheconomists,EliHeckscherandBertilOhlin.ThistheoryisalsocalledtheHeckscher-Ohlintheory.TheHeckscher-Ohlintheorystressesthatcountriesshouldproduceandexportgoodsthatrequireresources(factors)thatareabundantandimportgoodsthatrequireresourcesinshortsupply.Thistheorydiffersfromthetheoriesofcomparativeadvantageandabsoluteadvantagesincethesetheoryfocusesontheproductivityoftheproductionprocessforaparticulargood.PartⅢInternationalTradeModels(Ⅰ)上一页下一页返回Onthecontrary,theHeckscher-Ohlintheorystatesthatacountryshouldspecializeonproductionandexportusingthefactorsthataremostabundant,andthusthecheapest.Nottoproduce,asearliertheoriesstated,thegoodsitproducesmostefficiently.TheHeckscher-OhlinmodelwasproducedasanalternativetotheRicardianmodelofbasiccomparativeadvantage.Despiteitsgreatercomplexityitdidnotprovemuchmoreaccurateinitspredictions.Howeverfromatheoreticalpointofviewitdidprovideanelegantsolutionbyincorporatingtheneoclassicalpricemechanismintointernationaltradetheory.Thetheoryarguesthatthepatternofinternationaltradeisdeterminedbydifferencesinfactorendowments.Itpredictsthatcountrieswillexportthosegoodsthatmakeintensiveuseoflocallyabundantfactorsandwillimportgoodsthatmakeintensiveuseoffactorsthatarelocallyscarce.EmpiricalproblemswiththeH-Omodel,knownastheLeontiefparadox,wereexposedinempiricaltestsbyWassilyLeontiefwhofoundthattheUnitedStatestendedtoexportlaborintensivegoodsdespitehavingcapitalabundance.PartⅢInternationalTradeModels(Ⅰ)上一页下一页返回TheH-Omodelmakesthefollowingcoreassumptions:(1)Laborandcapitalflowfreelybetweensectors(2)Theproductionofshoesislaborintensiveandcomputersiscapitalintensive(3)Theamountoflaborandcapitalintwocountriesdiffer(differenceinendowments)(4)Freetrade(5)Technologyisthesameacrosscountries(long-term)(6)Tastesarethesame.TheproblemwiththeH-Otheoryisthatitexcludesthetradeofcapitalgoods(includingmaterialsandfuels).IntheH-Otheory,laborandcapitalarefixedentitiesendowedtoeachcountry.Inamoderneconomy,capitalgoodsaretradedinternationally.Gainsfromtradeofintermediategoodsareconsiderable,asitwasemphasizedbySamuelson(2001).PartⅢInternationalTradeModels(Ⅰ)上一页下一页返回RealityandApplicabilityoftheHeckscher-OhlinModelTheHeckscher-OhlintheoryispreferredtotheRicardotheorybymanyeconomists,becauseitmakesfewersimplifyingassumptions.In1953,WassilyLeontiefpublishedastudy,wherehetestedthevalidityoftheHeckscher-Ohlintheory.ThestudyshowedthattheU.Swasmoreabundantincapitalcomparedtoothercountries;thereforetheU.Swouldexportcapital-intensivegoodsandimportlabor-intensivegoods.LeontieffoundoutthattheU.Sexportwaslesscapitalintensivethanimport.AftertheappearanceofLeontief'sparadox,manyresearcherstriedtosavetheHeckscher-Ohlintheory,eitherbynewmethodsofmeasurement,oreitherbynewinterpretations.LeameremphasizedthatLeontiefdidnotinterpretHOtheoryproperlyandclaimedthatwitharightinterpretationparadoxdidnotoccur.BrecherandChoudrifoundthat,ifLeamerwasright,theAmericanworkersconsumptionperheadshouldbelowerthantheworkersworldaverageconsumption.PartⅢInternationalTradeModels(Ⅰ)上一页下一页返回Manyothertrialsfollowedbutmostofthemfailed.Manyoffamoustextbookwriters,includingKrugmanandObstfeldandBowen,HollanderandViane,arenegativeaboutthevalidityofH-Omodel.Afterexaminingthelonghistoryofempiricalresearch,Bowen,HollanderandVianeconcluded:“Recenttestsofthefactorabundancetheory[H-Otheoryanditsdevelopedformintomany-commodityandmany-factorcase]thatdirectlyexaminetheH-O-Vequationsalsoindicatetherejectionofthetheory.”Heckscher-OhlintheoryisnotwelladaptedtotheanalyzeSouth-Northtradeproblems.TheassumptionsofHOarelessrealisticwithrespecttoN-SthanN-N(orS-S)trade.IncomedifferencesbetweenNorthandSouthistheonethatthirdworldcaresmost.Thefactorpriceequalization[aconsequenceofHOtheory]hasnotshownmuchsignofrealization.HOmodelassumesidenticalproductionfunctionsbetweencountries.Thisishighlyunrealistic.Technologicalgapbetweendevelopedanddevelopingcountriesisthemainconcernofthepoorcountries.PartⅢInternationalTradeModels(Ⅰ)上一页返回CurrentMembersoftheWorldTradeOrganisationGlobalCompetitivenessIndex(2008-2009):competitivenessisanimportantdeterminantforthewell-beingofstatesinaninternationaltradeenvironment.Inthismodel,labormobilitybetweenindustriesispossiblewhilecapitalisimmobilebetweenindustriesintheshort-run.Thus,thismodelcanbeinterpretedasa‘shortrun’versionoftheHeckscher-Ohlinmodel.Thespecificfactorsnamereferstothegiventhatintheshort-run,specificfactorsofproductionsuchasphysicalcapitalarenoteasilytransferablebetweenindustries.Thetheorysuggeststhatifthereisanincreaseinthepriceofagood,theownersofthefactorofproductionspecifictothatgoodwillprofitinrealterms.Additionally,ownersofopposingspecificfactorsofproduction(i.e.laborandcapital)arelikelytohaveopposingagendaswhenlobbyingforcontrolsoverimmigrationoflabor.Conversely,bothownersofcapitalandlaborprofitinrealtermscomefromanincreaseinthecapitalendowment.Thismodelisidealforparticularindustries.PartⅣInternationalTradeModels(Ⅱ)下一页返回Thismodelisidealf
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