ch07 International Factor Movements 克鲁格曼 教材.pptVIP

Chapter 7 International Factor Movements;Introduction International Labor Mobility International Borrowing and Lending Direct Foreign Investment and Multinational Firms Summary Appendix: More on Intertemporal Trade;Introduction;A One-Good Model Without Factor Mobility Assumptions of the model: There are two countries (Home and Foreign). There are two factors of production: Land (T) and Labor (L). Both countries produce only one good (refer to it as “output”). Both countries have the same technology but different overall land-labor ratios. Home is the labor-abundant country and Foreign is the land-abundant country. Perfect competition prevails in all markets. ;International Labor Mobility;L2;The redistribution of the world’s labor force: Leads to a convergence of real wage rates Increases the world’s output as a whole Leaves some groups worse off Extending the Analysis Modifying the model by adding some complications: Suppose the countries produce two goods, one labor- intensive and one land-intensive. Trade offers an alternative to factor mobility: Home can export labor and import land by exporting the labor-intensive good and importing the land-intensive good. ;International movements of capital Refer to borrowing and lending between countries Example: A U.S. bank lends to a Mexican firm. Can be interpreted as intertemporal trade Refers to trade of goods today for goods in the future ;Intertemporal Production Possibilities and Trade Imagine an economy that consumes only one good and will exist for only two periods, which we will call present and future. Intertemporal production possibility frontier It represents a trade-off between present and future production of the consumption good. Its shape will differ among countries: Some countries will be biased toward present output. Some countries will be biased toward future output.;Figure 7-4: The Intertemporal Production Possibility Frontier;The Real Interest Rate How does a country trade over time? A country can trade