国际经济学英文课件（萨尔瓦多第十版）ch02.pptxVIP

CHAPTER T W O2International EconomicsTenth EditionThe Law of Comparative AdvantageDominick SalvatoreJohn Wiley Sons, Inc.Salvatore: International Economics, 10th Edition ? 2010 John Wiley Sons, Inc.In this chapter:Salvatore: International Economics, 10th Edition ? 2010 John Wiley Sons, Inc.IntroductionThe Mercantilists’ Views on TradeTrade Based on Absolute Advantage: Adam SmithTrade Based on Comparative Advantage: David RicardoComparative Advantage and Opportunity CostsThe Basis for and the Gains from Trade under Constant CostsEmpirical Tests of the Ricardian ModelIntroductionSalvatore: International Economics, 10th Edition ? 2010 John Wiley Sons, Inc.Basic questions:What is the basis for trade?What are gains from trade?What is the pattern of trade?Assume two-nation, two-good worldThe Mercantilists’ Views on TradeSalvatore: International Economics, 10th Edition ? 2010 John Wiley Sons, Inc.MercantilismEconomic philosophy in 17th and 18th centuries, in England, Spain, France, Portugal and the Netherlands.Belief that nation could become rich and powerful only by exporting more than it imported. The Mercantilists’ Views on TradeSalvatore: International Economics, 10th Edition ? 2010 John Wiley Sons, Inc.MercantilismExport surpluses brought inflow of gold and silver.Trade policy was to encourage exports and restrict imports.One nation gained only at the expense of another.The Mercantilists’ Views on TradeSalvatore: International Economics, 10th Edition ? 2010 John Wiley Sons, Inc.Mercantilists measured wealth of a nation by stock of precious metals it possessed.Today, we measure wealth of a nation by its stock of human, man-made and natural resources available for producing goods and services.The greater the stock of resources, the greater the flow of goods and services to satisfy human wants, and the higher the standard of living.Trade Based on Absolute Advantage: Adam SmithA nation has absolute advantage over another nation if it can produce a commodity m