国际经济学(国际贸易部分)【美】Dominicks Salvatore 第三部分Chapter.docVIP

Chapter 5 Heckscher-Ohlin Theory Explain the basis of comparative advantage Analyze the effect that international Trade has on the earnings of factors of production in the two trading nations. 5.1 Assumptions of the Theory and the meaning 1. There are two nations (Nation 1 and Nation 2), two commodities (commodity X and commodity Y), and two factors of production (labor and capital). 2. Both nations use the same technology in production. 3. Commodity X is labor intensive and commodity Y is capital intensive in both nations. Commodity X requires relatively more labor to produce than commodity Y in both nations. That is, labor-capital ratio (L/K) is higher for commodity X than for commodity Y in both nations at the same relative factor price. 4. Both commodities are produced under constant returns to scale in both nations. 5. 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. 8. There is perfect factor mobility within each nation but no international factor mobility. 9. There are no transportation costs, tariffs, or other obstructions to the free flow of international trade. 10. All resources are fully employed in both nations. 11. International trade between the two nations is balanced. 5.2 Factor Intensity, Factor Abundance and the shape of the production Frontier 5.2.1 Factor Intensity We say that commodity Y is capital intensive if capital-labor ratio (K/L) used in the production of Y is greater than K/L used in the production of X. 5.2.2 Factor Abundance There are two ways to define factor abundance. One way is in terms of physical units (i.e., in terms of the overall amount of capital and labor available to each nation). Another way to define factor abundance is in terms of relative factor prices (i.e., in terms of the rental price of capital and the price of labor time in each nation). 1. Nation 2 is capital abundant