国际经济学基础Chapter .pptVIP

* Economic of Scale and International Trade In this situation, production on a larger scale lowers per unit costs of production and provides a new source of cost advantage on which to base exports. Even if two nations face identical production and demand conditions, there is still a basis for mutually beneficial trade b/w the two nations based on increasing returns of scale. * FIGURE 4.4 Trade Based on Economies of Scale. * Economic of Scale and International Trade It is a matter of complete indifference as to which of the two nations specializes in the production of commodity X or commodity Y. The two nations need not to be identical in every aspects for mutually beneficial trade to result from increasing returns to scale. The new international economies of scale (case study 4.3) * Preference Similarity Hypothesis Also called “overlapping demands” hypothesis advanced by Linder in 1961. A nation exports those manufactured products for which a large domestic market exists. According to the hypothesis, trade in manufactures is likely to be largest among countries with similar tastes and income levels. * 4.6 Trade based on Product Differentiation Differentiated products Similar products produced by different manufacturers in the same industry or general trade group. Toyota and Ford automobiles are differentiated products. Intra-industry trade may arise from product differentiation. Intra-industry trade is international trade in differentiated products. * Product differentiation based trade Reasons for intra-industry trade Allows producers to exploit product specific economies of scale. Allows consumers to benefit from product variety that would not exist without international trade. It is possible for all factors to gain. * Inter-industry Trade Inter-industry trade refers to “trade in different industries” (due to comparative advantage) By contrast, comparative advantage in the H-O model exists prior to trade and specialization, and so might be called natural compara