国贸理论与政策he standard trade model.ppt

Copyright by Qian Xuefeng Ch6. The Standard Trade Model * Ch6. The Standard Trade Model PPF with increasing costs Community indifference curves Equilibrium in isolation The basis for and the gains from trade with increasing costs Trade based on differences in tastes * PPF with increasing costs Increasing Opportunity Costs : the nation must give up more and more of one commodity to release just enough resources to produce each additional unit of another commodity. Marginal Rate of Transformation (MRT): refers to the amount of Y that a nation must give up to produce each additional unit of X. * Ch6. The Standard Trade Model PPF with increasing costs Community indifference curves Equilibrium in isolation The basis for and the gains from trade with increasing costs Trade based on differences in tastes * Community indifference curves Marginal Rate of Substitution (MRS) decreasing: MRSNMRSA=|SlopeA| * Ch6. The Standard Trade Model PPF with increasing costs Community indifference curves Equilibrium in isolation The basis for and the gains from trade with increasing costs Trade based on differences in tastes * Equilibrium in isolation autarky PA = PX/PY = 1/4 PA’ = PX/PY= 4 imply what? * Ch6. The Standard Trade Model PPF with increasing costs Community indifference curves Equilibrium in isolation The basis for and the gains from trade with increasing costs Trade based on differences in tastes * The Gains from Trade with Increasing Costs 60X 60Y ?BCE: Trade triangle Nation 1 specializes in X * Incomplete specialization and small country case Constant opportunity cost Increasing opportunity cost Complete specialization Incomplete specialization Under Small country Large country Constant cost Complete specialization Incomplete specialization Increasing cost Incomplete specialization (small country almost gets all gains) Incomplete specialization * The gains from exchange and from specialization A→T: Gains from exchange alone T→E: Gains from spec