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Assignment for chapter 1
The following table shows the numbers
of days of labor required to produce 1
unit of output of computers and wheat in
France and Germany:
computers wheat
France 100days 4days
Germany 60days 3days
Calculate the pretrade price ratios.
Which country has a comparative advantage
in computers? Why? Which has a
comparative advantage in wheat? Why?
If the terms of trade are 1 computer: 22 wheat,
how many days of labor does France save per
unit of its import good by engaging in trade?
How many days does Germany save per unit
of its import good?
What can be said about the comparative
distribution of the gains from trade between
France and Germany? Why?
Chapter 2 The standard theory
of international trade
新古典国际贸易理论:标准贸易
模型
Main contents of neoclassical
trade theory
The standard theory of international trade
Offer curves and the terms of trade
Factor endowments theory
The Empirical tests of the Heckscher-Ohlin
model
1 The standard theory of international trade
(标准贸易模型)
1) Basic concepts
A The production possibilities frontier with
increasing costs.
机会成本递增Increasing opportunity costs :
the nation must give up more and more of one
community to release just enough resources to
produce each additional unit of another
commodity.
Figure; MRT (the marginal rate of
transformation )
B Community indifference curves
Shows the various combinations of two
commodities that yield equal satisfaction
to the community or nation.
Figure.
(MRS)The Marginal rate of substitution
2 )封闭和开放经济下的一般均衡
A. Equilibrium in Isolation
Figure.
The equilibrium relative commodity
price in isolation is given by the slope of
the common tangent
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