国际经济学克鲁格曼课件5.pptVIP

Chapter 5 Resources and Trade: The Heckscher-Ohlin Model Chapter 5 Additional Chapter Art Trade in the Heckscher-Ohlin Model The countries are assumed to have the same technology and the same tastes. With the same technology, each economy has a comparative advantage in producing the good that relatively intensively uses the factors of production in which the country is relatively well endowed. With the same tastes, the two countries will consume cloth to food in the same ratio when faced with the same relative price of cloth under free trade. Trade in the Heckscher-Ohlin Model (cont.) Since cloth is relatively labor intensive, at each relative price of cloth to food, Home will produce a higher ratio of cloth to food than Foreign. Home will have a larger relative supply of cloth to food than Foreign. Home’s relative supply curve lies to the right of Foreign’s. Fig. 5-9: Trade Leads to a Convergence of Relative Prices Trade in the Heckscher-Ohlin Model (cont.) Like the Ricardian model, the Heckscher-Ohlin model predicts a convergence of relative prices with trade. With trade, the relative price of cloth rises in the relatively labor abundant (home) country and falls in the relatively labor scarce (foreign) country. Trade in the Heckscher-Ohlin Model (cont.) Relative prices and the pattern of trade: In Home, the rise in the relative price of cloth leads to a rise in the relative production of cloth and a fall in relative consumption of cloth. Home becomes an exporter of cloth and an importer of food. The decline in the relative price of cloth in Foreign leads it to become an importer of cloth and an exporter of food. Trade in the Heckscher-Ohlin Model (cont.) Heckscher-Ohlin theorem: An economy has a comparative advantage in producing, and thus will export, goods that are relatively intensive in using its relatively abundant factors of production, and will import goods that are relatively intensive in using its relatively scarce factors of production. Factor Price