Содержание
- 2. Lecture 2. Basics of the Word trade theory
- 3. Understanding international trade The core areas for understanding international trade: - the reasons for trade -
- 4. 2. Basics of the Word trade theory The starting point for studying international trade: Why do
- 5. Adam Smith Adam Smith had shown the gains of trade in the presence of absolute advantage;
- 6. Adam Smith = Appears a reason for trade = if the good is cheaper in another
- 7. David Ricardo model Ricardo’s model shows that mutual gains from trade (and specialisation) arise even when
- 8. The assumptions of the Ricardian model Each good is produced with the aid of one factor
- 9. Comparative advantage England is more efficient at the production of both goods. Less labor is required
- 10. The Ricardian model Developed by David Ricardo in the early nineteenth century to provide intellectual support
- 11. Opportunity cost Example of two countries –USA and Colombia. And 2 products roses and PCs Some
- 12. Opportunity cost In the USA the flowers must be grown in heated greenhouses, at great expense
- 13. Opportunity cost Suppose that the United States grows 10 million roses and that the resources used
- 14. Opportunity cost Colombian workers are less efficient than their U.S. counterparts at making sophisticated goods such
- 15. Opportunity cost The opportunity cost of roses in terms of computers is the number of computers
- 16. Comparative advantage. Gains of specialization Let the US stop grow roses and start produce more PCs
- 17. Change in production
- 18. Comparative advantage. Gains of specialization More generally, it can be shown that free trade, and hence
- 19. Gains from trade The reason that international trade makes an increase in world output is that
- 20. Importance of trade Trade brings not only benefits of choosing lower priced goods in another country
- 21. Testing the model The empirical evidence validates the predictions of the Ricardian model that: 1. Except
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