Week 1 Quick Review
... • For different opportunity costs • One person - comparative advantage in one good • The other person - comparative advantage in the other good ...
... • For different opportunity costs • One person - comparative advantage in one good • The other person - comparative advantage in the other good ...
Trade
... would move to Mexico (cheaper labor, less regulation, environmental and workers’ rights laws ignored) Supporters of NAFTA argue that increased trade ...
... would move to Mexico (cheaper labor, less regulation, environmental and workers’ rights laws ignored) Supporters of NAFTA argue that increased trade ...
Mids-SS106 - UC Davis economics
... as activities done in a factory) and y2 is a skilled-labor-intensive non-production input (such as R&D, marketing and after-sale services). The two intermediate goods (y1 and y2) are bundled together to produce a final food yn (labor or capital is not used in bundling). All three products can be int ...
... as activities done in a factory) and y2 is a skilled-labor-intensive non-production input (such as R&D, marketing and after-sale services). The two intermediate goods (y1 and y2) are bundled together to produce a final food yn (labor or capital is not used in bundling). All three products can be int ...
Practice-Mid1s-F11 - uc
... 4) How can a developed country compete against low foreign wage countries? ...
... 4) How can a developed country compete against low foreign wage countries? ...
Name:___Solution Key____ - uc
... economists cannot persuade the general public that free trade is beneficial. C. economists do not really understand how the real world works. D. the losses associated with protectionism are diffuse, making lobbying by the public impractical. E. None of the above. 4. Of the many arguments in favor of ...
... economists cannot persuade the general public that free trade is beneficial. C. economists do not really understand how the real world works. D. the losses associated with protectionism are diffuse, making lobbying by the public impractical. E. None of the above. 4. Of the many arguments in favor of ...
国际商务培训演讲纲2
... New trade theory: emerge in 1970s, the theory suggests that trade allows a nation to specialize in the production of certain goods, attaining scale economies and lowering the costs of producing those goods, while buying goods that it does not produce from other countries that are similarly specializ ...
... New trade theory: emerge in 1970s, the theory suggests that trade allows a nation to specialize in the production of certain goods, attaining scale economies and lowering the costs of producing those goods, while buying goods that it does not produce from other countries that are similarly specializ ...
Lecture 03
... Denmark has cut its unemployment from about 10 percent in the early 1990s to less than 5 percent now. The main ingredient for the Danish success is a system called “flexicurity,” a set of liberal policies for hiring and firing, allowing relatively frictionless adjustment to shocks caused by inte ...
... Denmark has cut its unemployment from about 10 percent in the early 1990s to less than 5 percent now. The main ingredient for the Danish success is a system called “flexicurity,” a set of liberal policies for hiring and firing, allowing relatively frictionless adjustment to shocks caused by inte ...
the full speech - EESC European Economic and Social
... those, who lose their jobs because of trade liberalization. The impact on wages and working conditions should also be carefully analyzed. The existence of good adjustment policies is increasing importance to adapt to changes induced by trade liberalization. In general, job losses due to trade libera ...
... those, who lose their jobs because of trade liberalization. The impact on wages and working conditions should also be carefully analyzed. The existence of good adjustment policies is increasing importance to adapt to changes induced by trade liberalization. In general, job losses due to trade libera ...
Why do countries trade?
... to scale are constant, i,e. there are no economies or diseconomies of scale. However, the existence of economies of scale would, in all probability, increase a counfy's comparative advantage, as relative costs of production fell even more. It is usually assumed that the goods being traded are identi ...
... to scale are constant, i,e. there are no economies or diseconomies of scale. However, the existence of economies of scale would, in all probability, increase a counfy's comparative advantage, as relative costs of production fell even more. It is usually assumed that the goods being traded are identi ...
International Trade and Globalization
... hitherto wandered in the paths of error, and has now for the first time succeeded in discovering the truth." -Friedrich List, 1885 (German economist known as father of modern 'infant industry' theory ...
... hitherto wandered in the paths of error, and has now for the first time succeeded in discovering the truth." -Friedrich List, 1885 (German economist known as father of modern 'infant industry' theory ...
Trade Policy
... More conceptual issue -- using trade to make world resources be allocated more efficiently. People of different countries trade because they both stand to benefit from the deal. ...
... More conceptual issue -- using trade to make world resources be allocated more efficiently. People of different countries trade because they both stand to benefit from the deal. ...
International Trade Agreements
... exports are exchanged for its imports Terms of trade establish an international price for one product in terms of another product ...
... exports are exchanged for its imports Terms of trade establish an international price for one product in terms of another product ...
Global Value Chains in the 21st Century
... Although the role of global manufacturing is now well recognized, we still lack appropriate data to measure it and fully understand all implications. Traditional measures of trade statistics (gross recording) may overstate or misinterpret the actual domestic content of trade flows, and be misleading ...
... Although the role of global manufacturing is now well recognized, we still lack appropriate data to measure it and fully understand all implications. Traditional measures of trade statistics (gross recording) may overstate or misinterpret the actual domestic content of trade flows, and be misleading ...
Bell Ringer
... exchange of goods and services between nations. True or False. Government involvement in International Trade is based on balance of trade, trade barriers, and trade agreements and alliances. True or False. The World Trade Organization is a global coalition of 135 governments that makes the rules gov ...
... exchange of goods and services between nations. True or False. Government involvement in International Trade is based on balance of trade, trade barriers, and trade agreements and alliances. True or False. The World Trade Organization is a global coalition of 135 governments that makes the rules gov ...
Chapter 1: Human Misery
... Export light manufacturing goods (e.g., textiles) Achieve efficiency and charge competitive prices Expand industrial production to more advanced products (e.g., electronics) ...
... Export light manufacturing goods (e.g., textiles) Achieve efficiency and charge competitive prices Expand industrial production to more advanced products (e.g., electronics) ...
International Trade-phinizy
... Explain that most trade takes place because of comparative advantage in the production of a good or service. SSEIN1.c Explain the difference between balance of trade and balance of payments. ...
... Explain that most trade takes place because of comparative advantage in the production of a good or service. SSEIN1.c Explain the difference between balance of trade and balance of payments. ...
Answer all five questions - the School of Economics and Finance
... 5. The demand curve for computers in Hong Kong is: p = 50 – Q, where p and Q are the price and the quantity demanded for computers in Hong Kong. Hong Kong people satisfy their demand for computers by buying from the only local producer as well as by importing from the rest of the world. The total c ...
... 5. The demand curve for computers in Hong Kong is: p = 50 – Q, where p and Q are the price and the quantity demanded for computers in Hong Kong. Hong Kong people satisfy their demand for computers by buying from the only local producer as well as by importing from the rest of the world. The total c ...
protectionism and free trade
... Some lawyers are better typists than their secretaries. Should such a lawyer fire his secretary and do his own typing? Not likely. Though the lawyer may be better than the secretary at both arguing cases and typing, he will fare better by concentrating his energies on the practice of law and leavi ...
... Some lawyers are better typists than their secretaries. Should such a lawyer fire his secretary and do his own typing? Not likely. Though the lawyer may be better than the secretary at both arguing cases and typing, he will fare better by concentrating his energies on the practice of law and leavi ...
Lecture 13 Slides
... Absolute Advantage -- Adam Smith Comparative Advantage -- David Ricardo Heckscher-Ohlin Theory -- factor endowments Intra-industry trade… Paul Krugman’s New Trade Theory ...
... Absolute Advantage -- Adam Smith Comparative Advantage -- David Ricardo Heckscher-Ohlin Theory -- factor endowments Intra-industry trade… Paul Krugman’s New Trade Theory ...
Ricardian Model
... being was based on its holdings of gold and silver – as a consequence mercantilists viewed exports as “good” and imports as “bad” Think of two countries (US and China), with two ...
... being was based on its holdings of gold and silver – as a consequence mercantilists viewed exports as “good” and imports as “bad” Think of two countries (US and China), with two ...
Lecture-7
... • The nature of home demand for the industry’s product or service influences the development of capabilities • Sophisticated and demanding customers pressure firms to be competitive. Camera industry in Japan; Ericson in Sweden; Nokia in Finland. Relating and Supporting Industries •The presence suppl ...
... • The nature of home demand for the industry’s product or service influences the development of capabilities • Sophisticated and demanding customers pressure firms to be competitive. Camera industry in Japan; Ericson in Sweden; Nokia in Finland. Relating and Supporting Industries •The presence suppl ...
International trade and exchange
... Trade existed since time immemorial, in one way or the other. Trade facilitated not only exchange of goods but also led to the spread of language, art culture, customs, race, goods and services. It catalysed socio-economic development among the partners of the trade. Trade that occurs within the ...
... Trade existed since time immemorial, in one way or the other. Trade facilitated not only exchange of goods but also led to the spread of language, art culture, customs, race, goods and services. It catalysed socio-economic development among the partners of the trade. Trade that occurs within the ...
David Ricardo
David Ricardo (18 April 1772 – 11 September 1823) was a British political economist. He was one of the most influential of the classical economists, along with Thomas Malthus, Adam Smith, and James Mill. Perhaps his most important legacy is his theory of comparative advantage, which suggests that a nation should concentrate its resources solely in industries where it is most internationally competitive and trade with other countries to obtain products no longer produced nationally. In essence, Ricardo promoted the idea of extreme industry specialization by nations, to the point of dismantling internationally competitive and otherwise profitable industries. Ricardo took as a given the existence of a national industry policy aimed at promoting some industries to the detriment of others. For Ricardo some form of central economic planning was a necessity. Ricardo's theory of comparative advantage has been challenged by, among others, Joan Robinson and Piero Sraffa, but remains the cornerstone of the argument in favour of international free trade. Comparative advantage was the theoretical forerunner of the push towards globalization via increased international trade which is the guiding theme in the economic policy programme currently promoted by the OECD and the World Trade Organization, where it is assumed that increased international trade will lead to economic prosperity. The results of the implementation of this type of policy agenda are debated by some but accepted by mainstream economics. Although his influence on economics has been considerable, Ricardo actually began his professional life as a broker and financial market speculator. He amassed a considerable personal fortune, largely from financial market manipulation. Once retired, he bought a seat in the U.K. Parliament. He held his parliamentary seat for the last four years of his life. Ricardo died at the age of 51.