应用国际贸易.pptVIP

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应用国际贸易

* The notation PW and PD introduced here is not in the textbook. * Students may not be aware of the economic importance of soybeans. In fact, soybeans are big business in the U.S. In 2007, U.S. farmers produced 2.6 billion bushels of soybeans. The average price was $10.40/bushel, for a total of $26.8 billion. Soybeans provided 71% of the edible consumption of fats and oils in the U.S. The U.S. exported 1.0 billion bushels of soybeans, earning $12.9 billion from exports. This amounts to 37% of international trade in soybeans. The biggest purchasers of U.S. soybeans are: China ($4.1 billion), Mexico ($1.1 billion), Japan ($1.1 billion), and Europe ($1.0 billion). Source: American Soybean Association, /2008 Before covering this slide, alert your students that, in just a moment, they will be asked to do some analysis very similar to the analysis shown on this and the following slide. In this case, PD PW, so this country will export soybeans. The quantity of exports is simply the difference between the domestic quantity supplied and the domestic quantity demanded at the world price. * Trade benefits soybean producers because they can sell at a higher price. Producer surplus rises by the area B + D. Trade makes domestic buyers worse off because they have to pay a higher price. Consumer surplus falls by the area B. The gains to producers are greater than the losses to consumers, so trade increases total welfare: total surplus rises by the amount D. The two preceding slides show students the analysis of trade when the country exports. The next step is to cover the analysis of trade when the country imports the good. Instead of lecturing on this material, I suggest you have students work on this exercise, which students to do this analysis themselves. It’s an activity that breaks up the lecture and gives students a chance to apply the techniques you’ve just presented. I suggest you have students work on it in pairs. Give them a

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