托马斯A普格尔_国际贸易_英语chap003.pptVIP

The gains from trade Trade allows each country to consume at a point(C1)that lies beyond its own possibility to produce; trade allows each country to achieve a higher community indifference curve A country gains more from trade if its terms of trade increase. Terms of trade: the ratio of the (average) price that a country receives from foreigners for its exports to the (average) price that this country pays foreigners for its imports What determines the trade pattern? Production conditional differ Consumption conditional differ Some combination of these two differences Heckscher-Ohlin Theory of Trade Labor-abundant and Labor-intensive The H-O theory( or H-O-S theory) Labor-abundant: a ?relatively labor abundant country is a country that has a higher ratio of (nationally available) labor to (nationally available) other factors than does the rest of the world. e.g. Country A has 160 units of labor and 100 units of capital; country B has 120 units of labor and 80 units of capital. Which country is labor abundant country and which country is capital abundant country? Labor-intensive :A relatively labor-intensive product is a product for which labor costs are a greater share of its value than they are of the value of other products e.g. Country A and B has the same technology. To produce 1 unit of cloth needs 1 unit of capital and 3 units of labor while to produce 1 unit of food needs 2 units of capital and 2 units of labor. Which product is the labor-intensive and which is capital intensive? The H-O theory( or H-O-S theory) Assumption Two countries, two factor and two goods(2*2*2) The factor supplies are fixed for each country, full employed and mobile between sectors within each country, but immobile between countries Consumption patterns of the two countries are identical Both countries share the same constant-returns-to-scale production technologies us The rest of world Factor price $1 for 1 unit of land; $2 for 1 unit of labor $4 for 1 unit of land; $1 for