国际贸易学英）课件.ppt

5.3 Factor intensity, Factor abundance, and the shape of the production frontier 5.3.1. factor intensity The commodity Y is capital intensive if the capital-labor ratio (K/L) used in the production of Y is greater than K/L used in the production of X ( is not the absolute amount of K and L.) In Nation 1, K/L in X: 1/4 in Y : 1 So, X is L- intensive commodity; Y is K-intensive In Nation 2, K/L in X: 1 in Y: 4 So, X is L-intensive commodity, Y is K-intensive The obvious question is : Why does Nation 2 use more K-intensive production techniques in both commodities than Nation 1 ? Why is capital relatively cheaper in Nation 2 ? 5.3.2. Factor abundance ? a. In terms of physical units : the overall amount of capital and labor available to each nation. The ratio of the total amount of capital to the total amount of labor. Nation 2 is capital abundant if TK2/TL2 TK1/TL1 b. In terms of relative factor prices: the rental price of capital and the price of labor time in each nation. The ratio of the rental price of capital to the price of labor time Pk/PL= r/w r: interest rate; w: wage rate Nation 2 is capital abundant if PK2/PL2 PK1/PL1 or r2/w2 r1/w1 5.3.3 Factor abundance and the shape of the production frontier Y X Nation 1 Nation 1 is the L-abundant nation; X is the L-intensive commodity Nation 2 So, Nation 1 can produce relatively more of commodity x 5.4 The Heckscher-Ohlin Theory 1. Differences in relative factor endowments among nations underlie the basis for trade. 2. A nation will export the commodity in the production of which a relatively large amount of its abundant and cheap resource is used. 3. Conversely, it will import commodities in the production of which a relatively scarce and expensive resource is used. 4.With trade the relative differences in resource prices between nations tend to be eliminated (Factor proportions; Factor endowment theory) 5.4.1 views of the Heckscher