国际经济 UCLA课堂内容5.pptVIP

In general, A transfer worsens the donor’s TOT if the donor has a higher Marginal Propensity to Spend (MPS) on its export good than the recipient. Copyright ? 2009 Pearson Addison-Wesley. All rights reserved. 5-* Copyright ? 2009 Pearson Addison-Wesley. All rights reserved. 5-* The Effects of International Transfers of Income (cont.) The supply of exports relative to imports in the donor country increases, reducing the terms of trade for the donor country. A transfer of income from a donor country will increase demand of and production of non-traded goods in the foreign country, so that few