国际经济学(双语)-第3章.ppt

1、Modern Trade Theories,International Economics,Chapter 3,Chapter 3 Modern Trade Thoeries,3.1 Existence of Intraindustry Trade 3.2 Technological gap, Product life Cycle and International Trade 3.3 Theory of Overlapping Demands 3.4 Economies of Scale, Imperfect competition, and International Trade 3.5

2、Reciprocal Dumping,3.1 Existence of Intraindustry Trade,Advanced industrial countries have increasingly emphasized intraindustry trade two-way trade in a similar commodity. Intraindustry trade involves flows of goods with similar factor requirements. countries that are net exporters of manufactured

3、goods embodying sophisticated technology also purchase such goods from other countries.,3.1 Existence of Intraindustry Trade,Intraindustry Trade in the U.S., 2002 ( in Billion of Dollars),3.1 Existence of Intraindustry Trade,Reasons for Intraindustry Trade Transportation costs Seasonal Manufacturers

4、 in each country produce for the “majority” consumer tastes within their country while ignoring “minority” consumer tastes Overlapping demand segments in trading countries Economies of scale,Chapter 3 Modern Trade Thoeries,3.1 Existence of Intraindustry Trade 3.2 Technological gap, Product life Cycl

5、e and International Trade 3.3 Theory of Overlapping Demands 3.4 Economies of Scale, Imperfect competition, and International Trade 3.5 Reciprocal Dumping,3.2 Technological Gap, Product Life Cycle and International Trade,Technological gap is a cause of international trade and determines the flow of i

6、nternational trade.,3.2 Technological Gap, Product Life Cycle and International Trade,T0-T1: the stage of demand lag the time lag from the invention of new products in innovating countries to the acceptance of importing countries. T0-T3: the stage of imitation lag the time interval from the inventio

7、n of new products in innovating countries to generic production until the import is zero. T0-T2: the stage of response lag the time lag from the invention of new products to imitation of importing countries. T2-T3: the stage of grasp lag from imitation to no import until the generic production can m

8、eet domestic demand and turn to export. T1-T3 is the trading period caused by technological gap.,3.2 Technological Gap, Product Life Cycle and International Trade,The technological gap theory explains the causes of trade among different countries from the perspective of comparative advantage, and pr

9、oves that leading technology can form comparative advantage even among the countries with close endowments and tastes. However, the theory hasnt explained the transfer of trade flow and the causes of the emergence and disappearance of technological gap.,3.2 Technological Gap, Product Life Cycle and

10、International Trade,The life cycle of products means all products will experience the course of innovation, growth, maturity and decline. The stage of new products The stage of mature technique The stage of standardization,3.2 Technological Gap, Product Life Cycle and International Trade,Model of Pr

11、oduct Life Cycle,3.2 Technological Gap, Product Life Cycle and International Trade,O- t1 the introduction of new products t1-t2 the growing period of products t2-t3 the maturing period of products t3-t4 The innovating country can manufacture the identical cheaper products than the inventing country

12、by native cheap non-skilled labor, sell in the international market and compete with the inventing country. After t4 Imitation countries begin to sell products to the inventing country, and the output of the inventing country will decrease so substantially as to come to a full stop. And the life cyc

13、le of the products will finish.,Chapter 3 Modern Trade Thoeries,3.1 Existence of Intraindustry Trade 3.2 Technological gap, Product life Cycle and International Trade 3.3 Theory of Overlapping Demands 3.4 Economies of Scale, Imperfect competition, and International Trade 3.5 Reciprocal Dumping,3.3 T

14、heory of Overlapping Demands,Wealthy (industrial) countries will likely trade with other wealthy countries, and poor (developing) countries will likely trade with other poor countries. The Linder hypothesis is thus known as the theory of overlapping demands.,Linder does not rule out all trade in man

15、ufactured goods between wealthy and poor countries. There will always be some overlapping of demand structures: some people in poor countries are wealthy, and some people in wealthy countries are poor. However, the potential for trade in manufactured goods is small when the extent of demand overlap

16、is limited.,3.3 Theory of Overlapping Demands,Chapter 3 Modern Trade Thoeries,3.1 Existence of Intraindustry Trade 3.2 Technological gap, Product life Cycle and International Trade 3.3 Theory of Overlapping Demands 3.4 Economies of Scale, Imperfect competition, and International Trade 3.5 Reciprocal

17、 Dumping,3.4 Economies of Scale, Imperfect Competition, and International Trade,Many industries are characterized by economies of scale (also referred to as increasing returns), so that the more efficient production is, the larger the scale at which it takes place.,3.4 Economies of Scale, Imperfect

18、Competition, and International Trade,Where there are economies of scale, doubling the inputs to an industry will more than double the industrys production. Relationship of Input to Output for a Hypothetical Industry,3.4 Economies of Scale, Imperfect Competition, and International Trade,Economies of

19、Scale as a Basis for Trade,3.4 Economies of Scale, Imperfect Competition, and International Trade,Economies of scale provide additional cost incentives for specialization in production. Instead of manufacturing only a few units of each and every product that domestic consumers desire to purchase, a

20、country specializes in the manufacture of large amounts of a limited number of goods and trades for the remaining goods. Specialization in a few products allows a manufacturer to benefit from longer production runs which lead to decreasing average costs.,3.4 Economies of Scale, Imperfect Competition

21、, and International Trade,Trade and Specialization under Decreasing Costs,3.4 Economies of Scale, Imperfect Competition, and International Trade,As South Korea moves to the right of Point A along its PPF, the relative cost of steel continues to decrease until South Korea totally specializes in steel

22、 production at Point C. Similarly, as the United States moves to the left of Point B along its PPF, the relative cost of computers continues to fall until the United States totally specializes in computers. Both countries can attain consumption points that are superior to those attained in the absen

23、ce of trade.,3.4 Economies of Scale, Imperfect Competition, and International Trade,In monopolistic competition models, two key assumptions are made to get around the problem of interdependence. First, each firm is assumed to be able to differentiate its product from that of its rivals. Second, each

24、 firm is assumed to take the prices charged by its rivals as given.,3.4 Economies of Scale, Imperfect Competition, and International Trade,Equilibrium in Monopolistically Competitive Market,3.4 Economies of Scale, Imperfect Competition, and International Trade,The number of firms in a monopolistical

25、ly competitive market, and the prices they charge, are determined by two relationships. On one side, the more firms there are, the more intensely they compete, and hence the lower is the industry price. This relationship is represented by PP. On the other side, the more firms there are, the less eac

26、h firm sells and therefore the higher is its average cost. This relationship is represented by CC. The equilibrium price and number of firms occur when price equals average cost, at the intersection of PP and CC.,3.4 Economies of Scale, Imperfect Competition, and International Trade,Monopolistic Com

27、petition and Trade The number of firms in a monopolistically competitive industry and the prices they charge are affected by the size of the market. In larger markets there usually will be both more firms and more sales per firm; consumers in a large market will be offered both lower prices and a gr

28、eater variety of products than consumers in small markets.,3.4 Economies of Scale, Imperfect Competition, and International Trade,An increase in the size of the market allows each firm, given other things equal, to produce more and thus have lower average cost. This is represented by a downward shift from CC1 to CC2.The result is a simultaneous increase in the number of firms (and hence in the variety of goods available) and a fall in the price of each.,Chapter 3 Modern Trade Thoeries,3.1 Existence of Intraindustry Trade 3.2 Technological gap, Product life Cycle and Internation