Ch02_The_Law_of_Comparative_Advantage(国际经济学_韩国国立江原大学).pdf

International Trade TheoryInternational Trade Theory Chapter 2: The Law of Comparative AdvantageChapter 2: The Law of Comparative Advantage Euijeong Park (K(Kangwon NNatitionall UUniiversity)it ) OUTLINEOUTLINE 22.11 IInttrodductition 2.2 The Mercantilists’ Views on Trade 2.3 Trade Based on Absolute Advantage: Adam Smith 22.44 TTradde BBasedd on CComparatitive AdAdvanttage: David Ricardo 2.5 Comparative Advantage and Opportunity Costs 2.62.6 TheThe BasisBasis forfor thethe GainsGains fromfrom TradeTrade UnderUnder Constant Costs 22.77 EmpiricalEmpirical TestsTests ofof thethe RicardianRicardian ModelModel slide 1 2.12.1 IntroductionIntroduction TTwo BBasiic questitions off iintternatitionall ttradde ththeory. ((1)) What is the basis for trade and what are the ggains from trade? How – generate, large, divided ((22)) WhatWhat isis thethe patternpattern ofof trade?trade? – commoditycommodity This chappter examines the developpment of trade theory from the mercantilists to Adam Smith, David Ricardo and Gottfried Haberler, and seeks to answer the basic questions. slide 2 2.22.2 The Mercantilists’ Views on TradeThe Mercantilists’ Views on Trade ThThe more goldld andd sililver andd a natition hhadd, ththe riichher and more powerful it was. Thus the way for a nation to become rich is to export more than it imported. The resulting export surplus would then be settled by an inflowinflow ofof bullionbullion oror preciousprecious metalsmetals suchsuch asas goldgold andand silver. Thus the mercantilists advocated restrictions on imports