托马斯.A.普格尔-国际贸易-英语chap6Alternative Theories of Trade

1、Chapter 6,Alternative Theories of Trade,Outline of chapter 6,Trade fact in reality Economics of scale Monopolistic competition and trade Oligopoly and international trade External scale economies and trade,Trade fact in reality Intra-industry trade Global industries dominated by a few large firms,Tr

2、ade fact in realityintra-industry trade,The rise of intra-industry trade (IIT) Intra-industry trade: Two-way trade in a product, in which a country both exports and imports the same or very similar products (products in the same industry)-(note:next PPT) How to measure IIT? Inter-industry vs. Intra-

3、industry How to explain IIT? Product differentiation,SITC: 类、章、组、分组、项目 如 7 2 1 1 1,类,章,组,分组,项目,7 Machinery and transport equipment (机械运输设备类) 72Machinery specialized for particular industries 721Agricultural machinery (excluding tractors) and parts thereof, 7211Agricultural and horticultural machiner

4、y for soil preparation, etc 72111 Ploughs,Inter-industry vs. Intra-industry Inter-industry: measured by net trade which is the value of the difference between exports and imports for the product Intra-industry: measured by ratio of IIT The IIT share is a number between 0 and 1. Question: if IIT=0, a

5、ll trade is inter-industry or intra-industry? if IIIT=1, all trade is intra-industry or inter-industry?,E.g. If U.S exported $27.39 billion of computers and imported $47.65 billion of computers in 2001 Net trade (or inter-industry trade): 47.65-27.39=20.26 Intra-industry trade: 27.39*2=54.78,Figure

6、6.1 Intra-Industry Trade (IIT) as a Percentage of Trade in Nonfood Manufactured Goods with Other Industrialized Countries,What information can you get from the figures?,How to explain IIT? Product differentiation Product differentiation : Consumers view the products (or product varieties) offered by

7、 firms in an industry as being close but not perfect substitutes for each Demand side and supply side cause to IIT happen. How?,Question: Which countries are most likely to participate in intra-industry trade? countries with high incomes developing and developed countries eastern and western countri

8、es developing countries,Trade fact in realityglobal industries dominated by a few large firms,Could you name some industries dominated by a few large firms?,Economies of scale Internal economies of scale Internal scale economies: Expansion of the size of the individual firm is the basis for the decl

9、ine in average cost as the firms production quantity increases. External economies of scale External scale economies or agglomeration economies : expansion of the size of the industry within a specified geographic area is the basis for the decline in the typical local firms average cost as the overa

10、ll production quantity for the industry in this geographic area increases. How external economies of scale can happen?,Questions: The production of one unit of good X requires one unit of labor and one unit of capital. When 2 units of labor and 2 units of capital are employed in the production proce

11、ss, 3 units of good X are produced. This phenomenon is called: (3) monopolistic competition biased growth economies of scale product differentiation Economies of scale are more likely to be found in: the auto industry. gasoline stations firms operating in perfectly competitive markets economics depa

12、rtments,Market structure Monopolistic competition A market structure in which products are differentiated, internal scale economies in production are modest or moderate, and entry and exit of firms is easy in the long run, so that a large number of firms compete vigorously with each other in produci

13、ng and selling varieties of the same basic product. Oligopoly A market structure in which a few large firms dominate total industry sales, perhaps because of substantial internal scale economies (or other barriers to entry).,Monopolistic competition and trade Before trade After trade,Monopolistic co

14、mpetition Before trade Demand curve is downward-sloping The firm maximizes its profit when MC=MR Free entry and exit causes the profit is zero, demand curve will just touch the average cost curve.,Figure 6.2 A Monopolistic-Competitive Firm in a Market Before Trade Opens,Monopolistic competition afte

15、r trade Firm will face new demand curve D2 which is more elastic than before trade demand curve D1 (why?) The firm maximizes its profit when MC=MR Free entry and exit causes the profit is zero, demand curve will just touch the average cost curve.,Figure 6.3 The Same Monopolistic Competitor in an Aut

16、omobile Market After Opening Trade,For the overall market after trade in monopolistic competition,Figure 6.4 The Automobile Market, with No Trade and with Free Trade,Basis for trade Economies of scale encourage production specialization for different varieties within the same industry Net trade in a

17、 product can be the result of endowment difference or the difference in international marketing capabilities or the shifting consumer tastes. Gains from trade under monopolistic competition Increase in the number of varieties of products Lower the prices of domestic varieties,Question? Is the impact

18、 on the domestic distribution of factor income same from inter-trade and from intra-trade ?,True or false As compared to the standard competitive trade model, trade based on monopolistic competition has a greater impact on producing firms and factor incomes,Oligopoly and international trade Game among oligopol