princ-ch03 贸易的好处.ppt

* The red dot represents the combination (240 computers, 0 tons wheat). We will assume this is the combination that Japan produces. Point out that, just because Japan is not producing any wheat does not mean that Japan’s consumers must all go on the Atkins diet (which shuns bread and other foods made from wheat). When trade is allowed, Japan can trade some of its computers for wheat produced in another country. * These terms are so basic that many instructors skip this slide. There’s a subtle point that you might want to mention (if you’re anal like me), or that your students might ask about (especially if tourism is an important part of your local economy). Someone from Germany or South Korea visits Las Vegas and spends $200 on a pair of tickets to a show. How should we classify this and other expenditures by foreign tourists on lodging and entertainment while they are vacationing here? Answer: we count it in U.S. exports. It doesn’t matter that the service was consumed here. What matters is that it was produced here but sold to a foreign buyer. Hence, a more precise definition of exports would be goods and serviced produced here and purchased by foreign buyers. This stricter definition of exports doesn’t care whether the good or service was consumed in the buyer’s home country or in the exporting country. Similarly, a stricter and more precise definition of imports would include purchases by domestic residents of goods and services produced abroad – including entertainment and lodging services that tourists from the U.S. consume in the foreign countries they visit. Some students need help figuring out that consumption of a good is the difference between the amount produced and the amount exported. * The red point again represents production. Trade un-tethers consumption from production. The light blue point represents consumption. Notice that the consumption point is above the PPF. Without trade, it would not be possible to consum