凯伯国际贸易第二章(英文原版课件)

1、Foundations of Modern Trade Theory: Comparative Advantage, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website fo

2、r classroom use,1,PowerPoint slides prepared by: Andreea Chiritescu Eastern Illinois University,Historical Development of Modern Trade Theory,The Mercantilists, 15001800 A strong foreign-trade sector Favorable trade balance Net payments - gold and silver Increased spending Rise in domestic output an

3、d employment Promote a favorable trade balance Government regulation of trade Tariffs, quotas, other commercial policies Static view of the world economy, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a lice

4、nse distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,2,Historical Development of Modern Trade Theory,The Mercantilists under attack David Humes price-specie-flow doctrine A favorable trade balance is possible only in the short run 1776, Adam

5、 Smith, The Wealth of Nations Worlds wealth is not a fixed quantity International trade Increase the general level of productivity within a country Increase world output (wealth), 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for u

6、se as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,3,Historical Development of Modern Trade Theory,Why Nations Trade: Absolute Advantage Adam Smith free trade advocate Production costs differ among nations Differen

7、t productivities of factor inputs Labor homogenous Absolute cost advantage Uses less labor to produce one unit of output, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain pr

8、oduct or service or otherwise on a passwordprotected website for classroom use,4,Historical Development of Modern Trade Theory,Principle of absolute advantage A two-nation, two-product world International specialization and trade One nation - absolute cost advantage in one good The other nation - ab

9、solute cost advantage in the other good Each nation must have a good that it is absolutely more efficient in producing than its trading partner Import goods if absolute cost disadvantage Export goods if absolute cost advantage, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned,

10、or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,5, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, exce

11、pt for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,6,Absolute advantage; each nation is more efficient in producing one good,TABLE 2.1,Historical Development of Modern Trade Theory,Why Nations Trade: Compar

12、ative Advantage 1800, David Ricardo (17721823) Free trade Mutually beneficial trade can occur whether or not countries have any absolute advantage Principle of comparative advantage Emphasized comparative (relative) cost differences, 2011 Cengage Learning. All Rights Reserved. May not be copied, sca

13、nned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,7,Historical Development of Modern Trade Theory,Principle of comparative advantage Even if a nation has an ab

14、solute cost disadvantage in the production of both goods The less efficient nation Specialize in and export the good in which it is relatively less inefficient Where its absolute disadvantage is least The more efficient nation Specialize in and export that good in which it is relatively more efficie

15、nt Where its absolute advantage is greatest, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom us

16、e,8, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,9,Examples of comparative advantages i

17、n international trade,TABLE 2.2,Historical Development of Modern Trade Theory,Principle of comparative advantage, simplified model - assumptions: 1. The world consists of two nations Each use a single input, produce two commodities 2. In each nation, labor is the only input Fixed endowment of labor

18、Labor is fully employed and homogeneous 3. Labor can move freely among industries Within a nation But is incapable of moving between nations, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distribut

19、ed with a certain product or service or otherwise on a passwordprotected website for classroom use,10,Historical Development of Modern Trade Theory,Principle of comparative advantage, simplified model - assumptions: 4. Technology - fixed for both nations Different nations may use different technolog

20、ies All firms within each nation - a common production method for each commodity 5. Costs do not vary with the level of production Proportional to the amount of labor used, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as p

21、ermitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,11,Historical Development of Modern Trade Theory,Principle of comparative advantage, simplified model - assumptions: 6. Perfect competition prevails in all markets All ar

22、e price takers Identical products Free entry to and exit from an industry Price of each product = products marginal cost of production 7. Free trade occurs between nations No government barriers to trade, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole

23、 or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,12,Historical Development of Modern Trade Theory,Principle of comparative advantage, simplified model - assumptions: 8. Transportation cos

24、ts are zero Consumers - indifferent between domestically produced and imported versions of a product if the domestic prices of the two products are identical 9. Firms make production decisions in an attempt to maximize profits Consumers maximize satisfaction through their consumption decisions, 2011

25、 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,13,Historical Development of Modern Trade Theor

26、y,Principle of comparative advantage, simplified model - assumptions: 10. There is no money illusion When consumers make their consumption choices and firms make their production decisions, they take into account the behavior of all prices 11. Trade is balanced Exports must pay for imports Ruling ou

27、t flows of money between nations, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,14, 2011

28、Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,15,Comparative advantage, U.S. -absolute advanta

29、ge in producing both goods,TABLE 2.3,David Ricardo, 17721823,Leading British economist of the early 1800s Theories of classical economics Economic freedom through free trade and competition Successful businessman, financier, speculator Stockbroker, loan broker 1819 1823, British parliament Advocated

30、 the repeal of the Corn Laws (trade barriers), 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom

31、use,16,David Ricardo, 17721823,Interest in economics Adam Smiths The Wealth of Nations Newspaper articles on economic questions 1817, The Principles of Political Economy and Taxation Laid out the theory of comparative advantage Advocate of free trade Opponent of protectionism, 2011 Cengage Learning.

32、 All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,17,Production Possibilities Schedules,Modern trade theory More ge

33、neralized theory of comparative advantage Use a production possibilities schedule Transformation schedule, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or servic

34、e or otherwise on a passwordprotected website for classroom use,18,Production Possibilities Schedules,Production possibilities schedule Various alternative combinations of two goods A nation can produce When all of its factor inputs Land, labor, capital, entrepreneurship Are used in their most effic

35、ient manner Maximum output possibilities of a nation, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for cla

36、ssroom use,19,With constant opportunity costs, a nation will specialize in the product of its comparative advantage. The principle of comparative advantage implies that with specialization and free trade, a nation enjoys production gains and consumption gains. A nations trade triangle denotes its ex

37、ports, imports, and terms of trade. In a two nation, two product world, the trade triangle of one nation equals that of the other nation; one nations exports equal the other nations imports, and there is one equilibrium terms of trade., 2011 Cengage Learning. All Rights Reserved. May not be copied,

38、scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,20,Trading under constant opportunity costs,FIGURE 2.1,Production Possibilities Schedules,Marginal rate of

39、 transformation, MRT The amount of one product a nation must sacrifice to get one additional unit of the other product Rate of sacrifice = opportunity cost of a product Absolute value of the slope of production possibilities schedule For Figure 2.1, 2011 Cengage Learning. All Rights Reserved. May no

40、t be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,21,Trading Under Constant-Cost Conditions,Constant opportunity costs Straight line production

41、 possibilities schedules Factors of production Perfect substitutes for each other All units of a given factor are of the same quality Autarky Absence of trade, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a

42、 license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,22,Trading Under Constant-Cost Conditions,Basis for Trade Principle of comparative advantage Direction of Trade Specialize and export the good with the lowest opportunity cost Product

43、ion Gains from Specialization Production gains for both countries Arise from the reallocation of existing resources Static gains from specialization, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license d

44、istributed with a certain product or service or otherwise on a passwordprotected website for classroom use,23, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or se

45、rvice or otherwise on a passwordprotected website for classroom use,24,Gains from specialization increasing-cost conditions,FIGURE 2.4,Trading Under Increasing-Cost Conditions,Increasing-Cost Trading Case One country specializes in producing one good The other country specializes in producing the ot

46、her good Specialization continues in both nations until Relative cost of one good is identical in both nations One countrys exports of one good are precisely equal to the other countrys imports of the good Same domestic rates of transformation, 2011 Cengage Learning. All Rights Reserved. May not be

47、copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,45,With increasing opportunity costs, comparative product prices in each country are determined by

48、 both supply and demand factors. A country tends to partially specialize in the product of its comparative advantage under increasing cost conditions., 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license

49、 distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,46,Trading under increasing opportunity costs,FIGURE 2.5,Trading Under Increasing-Cost Conditions,Production gains More of each good is being produced Consumption gains Both countries consume

50、 more of at least one good The trade triangle Exports, imports, and terms of trade Same for both countries, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or servi

51、ce or otherwise on a passwordprotected website for classroom use,47, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected

52、website for classroom use,48,Gains from specialization and trade: increasing opportunity costs,TABLE 2.6,Trading Under Increasing-Cost Conditions,Partial Specialization Each country specialize only partially In the production of the good in which it has a comparative advantage Increasing costs - mec

53、hanism that forces costs in two trading nations to converge Basis for further specialization ceases to exist Both nations will produce some of each good, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a licen

54、se distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,49,Trading Under Increasing-Cost Conditions,Partial Specialization Not all goods and services are traded internationally Differing tastes for products Most products are differentiated, 2011

55、 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,50,The Impact of Trade on Jobs,Extent to which

56、an economy is open Influences the mix of jobs within an economy Can cause dislocation in certain areas or industries Little effect on the overall level of employment, 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitt

57、ed in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,51,Increased international trade tends to neither inhibit overall job creation nor contribute to an increase in the overall rate of unemployment. As seen in the figure, the inc

58、rease in U.S. imports as a percentage of GDP over the past several decades has not led to any significant trend in the overall unemployment for Americans., 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a lic

59、ense distributed with a certain product or service or otherwise on a passwordprotected website for classroom use,52,The impact of trade on jobs,FIGURE 2.6,Comparative Advantage Extended to Many Products and Countries,More Than Two Products Comparative advantage Rank the goods by the degree of comparative cost Each country exports the product(s) Has the greatest comparative advantage Each country imports the product(s) Has greatest comparative disadvantage Cutoff point between exports and imports Relative stre