Deconstructing the Theory of Comparative Advantage
... examine these assumption and with it the theory of comparative advantage. Before this is done, a short introduction to the theory is given, which is closely linked to the name David Ricardo,2 who formulates it in chapter 7 of his main work On the Principles of Political Economy and Taxation. Succeed ...
... examine these assumption and with it the theory of comparative advantage. Before this is done, a short introduction to the theory is given, which is closely linked to the name David Ricardo,2 who formulates it in chapter 7 of his main work On the Principles of Political Economy and Taxation. Succeed ...
The International Diversification Puzzle is Not as Bad as You Think
... equilibrium portfolios by tracing out how country-specific productivity shocks drive movements in international relative prices that in turn affect the returns to labor, to domestic capital, and to foreign capital. We also show that the size of these price movements varies inversely with the degree ...
... equilibrium portfolios by tracing out how country-specific productivity shocks drive movements in international relative prices that in turn affect the returns to labor, to domestic capital, and to foreign capital. We also show that the size of these price movements varies inversely with the degree ...
The international diversification puzzle is not as bad
... equilibrium portfolios by tracing out how country-specific productivity shocks drive movements in international relative prices that in turn affect the returns to labor, to domestic capital, and to foreign capital. We also show that the size of these price movements varies inversely with the degree ...
... equilibrium portfolios by tracing out how country-specific productivity shocks drive movements in international relative prices that in turn affect the returns to labor, to domestic capital, and to foreign capital. We also show that the size of these price movements varies inversely with the degree ...
Ch8
... E) None of the above. Answer: D Should the home country be "large" relative to its trade partners, its imposition of a tariff on imports would lead to an increase in domestic welfare if the terms of the trade rectangle exceed the sum of the A) revenue effect plus redistribution effect. B) protectiv ...
... E) None of the above. Answer: D Should the home country be "large" relative to its trade partners, its imposition of a tariff on imports would lead to an increase in domestic welfare if the terms of the trade rectangle exceed the sum of the A) revenue effect plus redistribution effect. B) protectiv ...
NBER WORKING PAPER SERIES THE NIXON SHOCK AFTER FORTY YEARS:
... both countries, but their exports harmed politically powerful domestic constituencies, textiles and electronics in the case of Japan and iron and steel in the case of Germany. Because they feared importing inflation from the United States, West German officials had shown flexibility with regard to ...
... both countries, but their exports harmed politically powerful domestic constituencies, textiles and electronics in the case of Japan and iron and steel in the case of Germany. Because they feared importing inflation from the United States, West German officials had shown flexibility with regard to ...
Real Exchange Rates and Competitiveness: The Political Economy
... nearly 40% higher on average than U.S. prices across the 29-year time span. This cannot be due to barriers to trade because we focus on the period since the end of Bretton Woods, which is widely regarded as the beginning of a truly globalized international economy (at least for OECD countries).1 One ...
... nearly 40% higher on average than U.S. prices across the 29-year time span. This cannot be due to barriers to trade because we focus on the period since the end of Bretton Woods, which is widely regarded as the beginning of a truly globalized international economy (at least for OECD countries).1 One ...
Consulta: creatorFacets:"Sumner, Daniel A." Registros recuperados
... Rates of obesity among adults and children in the U.S. are soaring, with potentially huge private and social costs. Increasing attention is being paid to agricultural policies as both the culprits through their perceived roles in reducing the relative prices of energy-dense foods, and as the potenti ...
... Rates of obesity among adults and children in the U.S. are soaring, with potentially huge private and social costs. Increasing attention is being paid to agricultural policies as both the culprits through their perceived roles in reducing the relative prices of energy-dense foods, and as the potenti ...
INCIDENCE OF MARKETING ACTIVITIES IN MEDIUM
... opportunities in the domestic market but also extend their business horizon beyond the national boundaries (Tsai and Eisingerich, 2010; Zou et al., 2003). A number of integrated reviews of export literature noted that firms’ export involvement is triggered by factors other profit. Exporting firms ar ...
... opportunities in the domestic market but also extend their business horizon beyond the national boundaries (Tsai and Eisingerich, 2010; Zou et al., 2003). A number of integrated reviews of export literature noted that firms’ export involvement is triggered by factors other profit. Exporting firms ar ...
World Economic Outlook, October 2015, Chapter 3: Exchange Rates
... 7These factors include, in particular, the acceleration in production offshoring since the global financial crisis and the 2011 earthquake. 8The response of trade volumes to relative trade prices relates to the expenditure-switching effect discussed, for example, in Obstfeld and Rogoff 2007. 9Relate ...
... 7These factors include, in particular, the acceleration in production offshoring since the global financial crisis and the 2011 earthquake. 8The response of trade volumes to relative trade prices relates to the expenditure-switching effect discussed, for example, in Obstfeld and Rogoff 2007. 9Relate ...
Zambia in Regional and Extra-Regional Free Trade
... Swaziland and Tanzania are strongly advocating a SADC EPA, while Malawi, Mauritius, Zambia and Zimbabwe (all of whom are also COMESA members) believe that a wider configuration of Eastern and Southern African countries as proposed by COMESA is more appropriate for the region. According to them this ...
... Swaziland and Tanzania are strongly advocating a SADC EPA, while Malawi, Mauritius, Zambia and Zimbabwe (all of whom are also COMESA members) believe that a wider configuration of Eastern and Southern African countries as proposed by COMESA is more appropriate for the region. According to them this ...
The Nixon Shock after 40 Years
... 423). The memo advocated using ‘the following measures as negotiating leverage: (i) suspension of gold convertibility; (ii) imposition of trade restrictions; (iii) diplomatic and financial intervention to frustrate foreign activities which interfere with the attainment of our objectives; and (iv) red ...
... 423). The memo advocated using ‘the following measures as negotiating leverage: (i) suspension of gold convertibility; (ii) imposition of trade restrictions; (iii) diplomatic and financial intervention to frustrate foreign activities which interfere with the attainment of our objectives; and (iv) red ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... Any errors are ours. ...
... Any errors are ours. ...
International trade and economic growth
... principal effects: First, by the assumption of perfect symmetry of both economies and perfect mobility of technological knowledge, free trade implies a doubling of the stock of technological knowledge, which doubles the available variety of production goods and leads, this way, to a doubling of prod ...
... principal effects: First, by the assumption of perfect symmetry of both economies and perfect mobility of technological knowledge, free trade implies a doubling of the stock of technological knowledge, which doubles the available variety of production goods and leads, this way, to a doubling of prod ...
Revisiting the Link between Trade, Growth and Inequality
... policy to maximize the growth benefits of trade, the importance of countries’ trade characteristics in terms of its connections, participation in global value chains (GVCs) and export markets and products are considered in addition to standard trade openness. Second, event studies of past episodes o ...
... policy to maximize the growth benefits of trade, the importance of countries’ trade characteristics in terms of its connections, participation in global value chains (GVCs) and export markets and products are considered in addition to standard trade openness. Second, event studies of past episodes o ...
International Trade, Comparative Advantage, and
... A country has a comparative advantage in the production of a product if that country is relatively well endowed with the inputs used intensively to produce it. d. Evidence suggests that economies of scale in small industries are substantial and account for a great part of comparative advantage and w ...
... A country has a comparative advantage in the production of a product if that country is relatively well endowed with the inputs used intensively to produce it. d. Evidence suggests that economies of scale in small industries are substantial and account for a great part of comparative advantage and w ...
PDF
... Over the past seventeen years, Kazakhstan’s wheat exports have increased sharply from $228.5 million in 1995 to $1599.1 million in 2012; an average annual growth of 21 percent (UNCOMTRADE 2014). Factors that have been associated with this rapid growth are the country’s move to an open market economy ...
... Over the past seventeen years, Kazakhstan’s wheat exports have increased sharply from $228.5 million in 1995 to $1599.1 million in 2012; an average annual growth of 21 percent (UNCOMTRADE 2014). Factors that have been associated with this rapid growth are the country’s move to an open market economy ...
International Trade Finance and the Cost Channel of Monetary
... (NOEM) paradigm of Obstfeld et al. (1996).7 The world economy is assumed to consist of two countries of equal size. Households have preferences over domestic and foreign goods and supply labor to firms elastically. There are two sets of firms in each economy– production firms and trade firms. Prices ...
... (NOEM) paradigm of Obstfeld et al. (1996).7 The world economy is assumed to consist of two countries of equal size. Households have preferences over domestic and foreign goods and supply labor to firms elastically. There are two sets of firms in each economy– production firms and trade firms. Prices ...
FDI inflows and trade imbalances: evidence from developing Asia
... connection between exports and investment. The strongest effects of a potential FDIexport nexus are supposed to be in the manufacturing sector, where foreign-invested enterprises develop production networks and supply chains that increase trade. Consequently, there is a positive correlation between ...
... connection between exports and investment. The strongest effects of a potential FDIexport nexus are supposed to be in the manufacturing sector, where foreign-invested enterprises develop production networks and supply chains that increase trade. Consequently, there is a positive correlation between ...
Principles of Economics, Case and Fair,9e
... preferences across economies. Some economists distinguish between gains from acquired comparative advantages and gains from natural comparative advantages. ...
... preferences across economies. Some economists distinguish between gains from acquired comparative advantages and gains from natural comparative advantages. ...
FREE Sample Here
... 22. (p. 40-41) If a foreign producer intentionally sells their products in the United States for less than the cost of production with the purpose of undermining competition and taking control of the market, the foreign producer would be guilty of what is called warrior pricing. FALSE ...
... 22. (p. 40-41) If a foreign producer intentionally sells their products in the United States for less than the cost of production with the purpose of undermining competition and taking control of the market, the foreign producer would be guilty of what is called warrior pricing. FALSE ...
Understanding the weakness in global trade
... background of rising protectionist measures such as local content requirements, strong renewed expansion is unlikely to materialise in the medium term. Other factors are more uncertain and may contribute to some cyclical upswing. For instance, the dampening effect of low investment may gradually wan ...
... background of rising protectionist measures such as local content requirements, strong renewed expansion is unlikely to materialise in the medium term. Other factors are more uncertain and may contribute to some cyclical upswing. For instance, the dampening effect of low investment may gradually wan ...
Powerpoint slides are available - Faculty Directory | Berkeley-Haas
... • “One very robust finding of the empirical literature on trade protection is the positive impact of unemployment on the level of trade barriers. The same pattern can be observed across industries, among countries, and over time …” – Costinot (2009) Protection Isn't Counter-Cyclic ...
... • “One very robust finding of the empirical literature on trade protection is the positive impact of unemployment on the level of trade barriers. The same pattern can be observed across industries, among countries, and over time …” – Costinot (2009) Protection Isn't Counter-Cyclic ...
CHAPTER 14—EXCHANGE-RATE ADJUSTMENTS AND THE
... 17. The shift in focus toward imperfectly competitive markets in domestic and international trade questions the concept of: a. Official exchange rates b. Complete currency pass-through c. Exchange arbitrage ...
... 17. The shift in focus toward imperfectly competitive markets in domestic and international trade questions the concept of: a. Official exchange rates b. Complete currency pass-through c. Exchange arbitrage ...
Principles of Economics, Case and Fair,9e
... preferences across economies. Some economists distinguish between gains from acquired comparative advantages and gains from natural comparative advantages. ...
... preferences across economies. Some economists distinguish between gains from acquired comparative advantages and gains from natural comparative advantages. ...
The Impact of Real Exchange Rate Movements on
... Services have long been considered by economists and other observers of international commerce to be the proverbial non-traded good. Indeed, by conventional measures of openness services remain the most closed sector of the world economy. However, in part due to the technological changes that have m ...
... Services have long been considered by economists and other observers of international commerce to be the proverbial non-traded good. Indeed, by conventional measures of openness services remain the most closed sector of the world economy. However, in part due to the technological changes that have m ...