Chapt 4-New theories of international trade.pptVIP

Falvey, 1981 Assumption Provided that the differentiated products have two characters (A and B), how do the consumers allocate in the products?(消费者根据这两个特征在每个品种中的比例来排列) Spectrum Approach Differences in production technologies available in the various countries are basis for comparative advantage. Technology-based comparative advantage can arise over time as technological changes occurs at different rates in different sectors and countries. Theory of Product Cycle Vernon, 1966 Many manufactured goods undergo a predictable trade cycle . During this cycle, a nation initially is an exporter, then loses its export markets, and finally becomes an importer of the product. Product Cycle Model: Five Stages Illustration of the Product Cycle Model Theory of the competitive advantage of nations Founder Michel porter Competitive strategy(1980) Competitive advantage(1985) The competitive advantage of nations(1990) Main view A nation’s prosperity is decided by its advantage in international competition, and then a nation’s competitiveness depends on the capacity of its industry to innovate and upgrade. A firm must avail itself of all dimensions of competition, which he categorized into four components of “the diamond of national advantage” New trade protectionism An introduction to Game Theory The competition between BOEING and AIRBUS Trade pattern 1.Each nation will export the products with representative demand (overlapped demand) 2.Intra-industry trade is decided by the preference similarity of the consumers in two nations Theory of Increasing Returns to scale One of important pioneers of new theory of international trade representative work 1978, increasing returns of scale, monopolist competition and international trade (1) There is still a basis for mutually beneficial trade based on economies of scale, even if two nations are identical in other respects. (2) When economies of scale are present, total world output of both commodities will