托马斯A普格尔国际贸易英语chap007.ppt

Chapter 7 Growth and Trade What’s the sources of long-run economic growth? Balanced versus biased growth Growth in only one factor Changes in the country’s willingness to trade Effects on the country’s term of trade Technology and trade Economic growth expansion over time in the capabilities of an economy to produce goods and services. What’s the sources of long-run economic growth? Increase in countries’ endowments of production factors Improvements in production technologies Balanced versus biased growth Balanced growth the ppc shifts out proportionally so that its relative shape is the same Biased growth economic growth that favors producing relatively more of one of the products, so that the relative shape of the new production possibility curves skews toward the faster- growing product. What can cause biased growth? From factors From technologies Figure 7.1 – Balanced and Biased Growth How about the change of trade triangle in three figures? Growth in only one factor Rybczynski theorem: (1) an increase in the output quantity of the product that uses the growing factor intensively, and (2) a decrease in the output quantity of the other product.? Figure 7.2 – Single-Factor Growth: The Rybczynski Theorem Changes in the country’s willingness to trade What happen of the size of trade triangle in figure 6.1 when the consumption of wheat decrease? What happen of the size of trade triangle in figure 6.1 when the consumption of wheat increase? Effects on the country’s term of trade Small country A country whose trade (or realistic changes in its trade) does not affect international product price large country a country whose trade (or realistic changes in its trade) affects international product price Small country Is it a small country or big country in Figure 6.1? Large country Case 1: the reduction in the country’s demand for imports. See figure 6.3 How about term of trade in case 1? Improve or deteriorate? Term of trade improves Figure 7.3 – Growth