克鲁格曼国贸理论第十版课后习题答案.docVIP

PAGE 18Krugman/Obstfeld/Melitz?International Economics: Theory Policy, Tenth Edition Chapter 4Specific Factors and Income Distribution PAGE 19 ? 2015 Pearson Education Limited ? 2015 Pearson Education Limited ? 2015 Pearson Education Limited Chapter 4Specific Factors and Income Distribution ?Chapter Organization The Specific Factors Model Box: What Is a Specific Factor? Assumptions of the Model Production Possibilities Prices, Wages, and Labor Allocation Relative Prices and the Distribution of Income International Trade in the Specific Factors Model Income Distribution and the Gains from Trade The Political Economy of Trade: A Preliminary View Income Distribution and Trade Politics Case Study: Trade and Unemployment International Labor Mobility Case Study: Wage Convergence in the Age of Mass Migration Case Study: Foreign Workers: The Story of the GCC Summary APPENDIX TO CHAPTER 4: Further Details on Specific Factors Marginal and Total Product Relative Prices and the Distribution of Income ?Chapter Overview In Chapter 3, the Ricardian model of trade was introduced with labor as the single factor of production exhibiting constant returns to scale. Although informative, this model fails to highlight the observed opposition to free trade. In this chapter, the Specific Factors model is presented to gain a better understanding of the distributional effects of trade. After trade, the exporting industry expands, while the import competing industry shrinks. As a result, the factor specific to the exporting industry gains from trade, while the factor specific to the import competing industry loses from trade. However, the aggregate gains from trade are greater than the losses. The Specific Factors model assumes that there is one factor that is mobile between sectors (commonly thought of as labor) and production factors that are specific to each sector. The chapter begins with a simple economy producing two goods: cloth and food. Cloth is produced using labor and it