复习下学期华侨学院

1、Comparative Advantage and the Gains from International Trade2 of 39 After studying this chapter, you should be able to:Discuss the increasing importance of international trade to the United States.Understand the difference between comparative advantage and absolute advantage.Explain how countries ga

2、in from international trade.Discuss the sources of comparative advantage.Analyze the economic effects of government policies that restrict international trade.Evaluate the arguments for and against government policies that restrict international trade.Sugar Quota Drives U.S. Candy Manufacturers Over

3、seasLEARNING OBJECTIVES123456In this chapter, we will explore who wins and who loses from international trade and review the political debate over whether international trade should be restricted.3 of 39An Overview of International TradeTariff A tax imposed by a government on imports. Imports Goods

4、and services bought domestically but produced in other countries. Exports Goods and services produced domestically but sold to other countries. LEARNING OBJECTIVE14 of 39An Overview of International TradeThe Importance of Trade to the U.S. Economy8 - 1International Trade Is of Increasing Importance

5、to the United States5 of 39An Overview of International TradeU.S. International Trade in a World Context8 - 2The Eight Leading Exporting Countries6 of 39An Overview of International TradeU.S. International Trade in a World Context8 - 3International Trade as a Percent of GDP7 of 39Has Outsourcing Hur

6、t the U.S. Economy?8 - 1Some companies outsource technical support services to India.8 of 39Comparative Advantage: The Basis of All TradeLEARNING OBJECTIVE2A Brief Review of Comparative AdvantageComparative advantage The ability of an individual, business, or country to produce a good or service at

7、the lowest opportunity cost.Opportunity Cost The highest-valued alternative that must be given up to engage in an activity.9 of 39Comparative Advantage: The Basis of All TradeComparative Advantage in International TradeAbsolute advantage The ability to produce more of a good or service than competit

8、ors when using the same amount of resources.10 of 39Comparative Advantage: The Basis of All TradeComparative Advantage in International TradeAn Example of Japanese Workers Being More Productive than American Workers8 1The Opportunity Costs of Producing Cell Phones and MP3 Players8 2OUTPUT PER HOUR O

9、F WORKCELL PHONESMP3 PLAYERSJapanUnited States12264OPPORTUNITY COSTSCELL PHONESMP3 PLAYERSJapanUnited States0.5 MP3 player2 MP3 players2 cell phones0.5 cell phone11 of 39The Gains from TradeLEARNING OBJECTIVE3Autarky The ability of an individual, business, or country to produce a good or service at

10、the lowest opportunity cost.12 of 39The Gains from TradeIncreasing Consumption through TradeTerms of Trade The ratio at which a country can trade its exports for imports from other countries.Production without Trade8 3WITHOUT TRADEPRODUCTION AND CONSUMPTIONCELL PHONESMP3 PLAYERSJapanUnited States9,0

11、001,5001,5001,00013 of 39The Gains from TradeIncreasing Consumption through TradeThe Gains from Trade for Japan and the United States8 4WITHOUT TRADEProduction and ConsumptionCELL PHONESMP3 PLAYERSJapan9,0001,500United States1,5001,000WITH TRADEProduction with TradeTradeConsumption with TradeCELL PH

12、ONESMP3 PLAYERSCELL PHONESMP3 PLAYERSCELL PHONESMP3 PLAYERSJapan12,0000Export 1,500Import 1,50010,5001,500United States04,000Import 1,500Export 1,5001,5002,500With trade, the United States and Japan specialize in the good they have a comparative advantage in producing.and export some of that good in

13、 exchange for the good the other country has a comparative advantage in producing.GAINS FROM TRADEIncreased ConsumptionJapan1,500 Cell PhonesThe increased consumption made possible by trade represents the gains from tradeUnited States1,500 MP3 Players14 of 39 The Gains from TradeWITHOUT TRADEPRODUCT

14、ION AND CONSUMPTIONCLOTHWINEPortugalEngland18,00063,000123,00018,0008 - 1LEARNING OBJECTIVE3WITH TRADE PRODUCTION WITH TRADE TRADE CONSUMPTION WITH TRADECLOTHWINECLOTHWINE CLOTHWINEPortugalEngland090,000150,0000Import 18,000Export 18,000Export 18,000Import 18,00018,00072,000132,00018,000GAINS FROM T

15、RADEINCREASED CONSUMPTIONPortugalEngland9,000 wine9,000 cloth15 of 39The Gains from TradeRemember that Trade Creates Both Winners and LosersWhy Dont We See Complete Specialization?Not all goods and services are traded internationally.Production of most goods involves increasing opportunity costs.Tas

16、tes for products differ.16 of 39Where Does Comparative Advantage Come From?LEARNING OBJECTIVE4Among the main sources of comparative advantage are the following:Climate and natural resourcesRelative abundance of labor and capitalTechnologyExternal economiesExternal economies Reductions in a firms cos

17、ts that result from an expansion in the size of an industry.17 of 39Why is Dalton, Georgia, the Carpet-Making Capital of the World?8 - 2Because Catherine Evans Whitener started making bedspreads by hand in Dalton, Georgia, a hundred years ago, a multibillion-dollar carpet industry is now located the

18、re.18 of 39Government Policies That Restrict TradeLEARNING OBJECTIVE58 - 4The U.S. Lumber Industry under Autarky.Free Trade Trade between countries that is free from government restrictions.19 of 39Government Policies That Restrict Trade8 - 5The Effect of Imports on the U.S. Lumber Market.20 of 39Go

19、vernment Policies That Restrict TradeTariffs8 - 6The Effects of a Tariff on Lumber21 of 39Government Policies That Restrict TradeQuotasQuota A numerical limit imposed by the government on the quantity of a good that can be imported into a country.Voluntary export restraint An agreement negotiated be

20、tween two countries that places a numerical limit on the quantity of a good that can be imported by one country from the other country.22 of 39Government Policies That Restrict TradeQuotas8 - 7The Effect of the U.S. Sugar Quota23 of 39 Measuring the Economic Effect of a Quota8 - 2LEARNING OBJECTIVE5

21、WITHOUT QUOTAWITH QUOTAWorld price of applesU.S. price of applesQuantity supplied by U.S. firmsQuantity demanded by U.S. consumersQuantity importedArea of consumer surplusArea of producer surplusArea of deadweight loss$10$106 million boxes16 million boxes10 millions boxesA+B+C+D+E+FGNo deadweight lo

22、ss$10$1210 million boxes14 million boxes4 million boxesA+BG+CD+F24 of 39Government Policies That Restrict TradeThe High Cost of Preserving Jobs with Tariffs and QuotasPreserving U.S. Jobs with Tariffs and Quotas Is Expensive8 5PRODUCTNUMBER OF JOBS SAVEDCOST TO CONSUMERS PER YEAR FOR EACH JOB SAVEDB

23、enzenoid chemicalsLuggageSoftwood lumberDairy productsFrozen orange juiceBall bearingsMachine toolsWomens handbagsCanned tuna2162266052,3786091461,556773390$1,376,4351,285,0781,044,271685,323635,103603,368479,452263,535257,64025 of 39Government Policies That Restrict TradeGains from Unilateral Elimi

24、nation of Tariffs and QuotasPreserving Japanese Jobs with Tariffs and Quotas Is Also Expensive8 6PRODUCTCOST TO CONSUMERS PER YEAROR EACH JOB SAVEDRiceNatural gasGasolinePaperBeef, pork, and poultryCosmeticsRadio and television sets$51,233,00027,987,0006,329,0003,813,0001,933,0001,778,000915,00026 o

25、f 39The Argument over Trade Policies and GlobalizationLEARNING OBJECTIVE6World Trade Organization (WTO) An international organization that enforces international trade agreements.27 of 39The Argument over Trade Policies and GlobalizationWhy Do Some People Oppose the World Trade Organization?Globaliz

26、ation The process of countries ing more open to foreign trade and investment.ANTI-GLOBALIZATIONSome people believe that free trade and foreign investment destroy the distinctive cultures of many countries. Many governments have resisted globalization proposals.28 of 39The Unintended Consequences of

27、Banning Goods Made with Child LaborWould eliminating child labor in developing countries be a good thing?8 - 329 of 39The Argument over Trade Policies and GlobalizationWhy Do Some People Oppose the World Trade Organization?“OLD-FASHIONED” PROTECTIONISMProtectionism The use of trade barriers to shiel

28、d domestic companies from foreign competition.Protectionism is usually justified on the basis of one of the following arguments:Saving jobsProtecting high wagesProtecting infant industriesProtecting national security30 of 39Has NAFTA Helped or Hurt the U.S. Economy?Despite resistance to NAFTA, time

29、proved that the U.S. economy gained jobs.8 - 431 of 39The Argument over Trade Policies and GlobalizationDumpingDumping Selling a product for a price below its cost of production.32 of 39U.S., Australia Commerce to Leap ForwardFigure 1: The market for wine in Australia after the tariff on California

30、wine is eliminated.33 of 39Absolute advantageAutarkyComparative advantageDumpingExportsExternal economiesFree TradeGlobalizationImportsNon-tariff barrierOpportunity costProtectionismQuotaTariffTerms of tradeVoluntary export restraintWorld Trade Organization (WTO)34 of 39Multinational FirmsA Brief Hi

31、story of Multinational EnterprisesMultinational enterprises (MNEs) Firms that conduct operations in more than one country.Foreign direct investment (FDI) The purchase or building by a domestic firm of a facility in a foreign country.Foreign portfolio investment The purchase by an individual or firm

32、of stocks or bonds issued in another country.Appendix 8A:Multinational Firms35 of 39Multinational FirmsA Brief History of Multinational EnterprisesRANKCORPORATIONHOME COUNTRYINDUSTRY12345678910111213Wal-Mart StoresBPExxon MobilRoyal Dutch/Shell GroupGeneral MotorsFord Motor DaimlerChryslerToyota Mot

33、orGeneral Electric TotalAllianzChevronTexacoAxaUnited StatesGreat BritainUnited StatesNetherlands/United KingdomUnited StatesUnited StatesGermanyJapanUnited StatesFranceGermanyUnited StatesFranceRetailingPetroleum RefiningPetroleum RefiningPetroleum RefiningMotor VehiclesMotor VehiclesMotor VehiclesMotor VehiclesDiversified FinancialsPetroleum RefiningInsurancePetroleumInsuranceThe Top 25 Multinational Corporations, 20048A 1Appendix 8A:Multinational Firms36 of 39Multinational FirmsA Brief History of Multinational EnterprisesRANKCORPORATIONHOME COUNTRYINDUSTRY141516171819202122232