《国际贸易理论与实务(张素芳 第2版)》chapter 2 trade theory.pptVIP

International Trade: Theory and Practice, 张素芳， 对外经贸大学Press； 教案作者：王锦堂 Chapter 2-4 Theories of International Trade Theories of international trade: Mercantilism Absolute advantage theory Comparative advantage theory Factor endowment theory 1. Mercantilism 重商主义 Mercantilism refers to the school of economic thought during 16c. 1750(after the decline of feudalism). Mercantilists only regards bullions (precious metals) as wealth and they favored accumulating bullions, establishing colonies and merchant marine and developing industry and mining to attain favorable balance of trade. 2. Absolute advantage theory( Adam Smith) Adam Smith, British economist and philosopher. Founder of Economics Works: the Wealth of Nations 1776 specialization “invisible hands”, principle of laissez-faire (non-intervention) Absolute advantage Define: Being able to produce goods or service at a lower real cost than another country Absolute advantage Then concept of absolute advantage can be illustrated with a simple example of two countries and two products. To simplify the example further, we will use units of resource input (land, labor and capital) for comparison, rather than money. Absolute advantage 3. Comparative advantage David Ricardo in Principles of Political Economy(1871) Comparative advantage Question： Do you agree with David Ricardo? Is there anything wrong with his theory? 4. Factor endowment theory要素禀赋论 Developed by Eli Heckscher(1879-1952) and his student Bertil Ohlin(1899-1979) and further developed by Paul Sameulson(1915-). Also termed as: Heckscher- Ohlin theorem; Ohlin - Heckscher theorem; Heckscher- Ohlin- Sameulson theorem Factor endowment theory The H-O theorem 3 major conclusions: A country will benefit from using its intensive resources to make products, and vice versa; The direct cause of international trade or regional trade is discrepancy in price; International trade tends to offset the discrepancies in factor income 5. The L