复旦国际贸易英文课件04.pptVIP

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复旦国际贸易英文课件04

Opinions Toward Free Trade A survey was conducted in the U.S. by the National Elections Studies (NES) in 1992 to see how citizens viewed trade. Respondents could either answer that they favor placing limits on imports, not supporting free trade, or they could oppose limits on imports, supporting free trade. How do these answers compare with characteristics of the respondents, such as their wages, skills, or the industries they work in? Opinions Toward Free Trade If labor earns some of the return to capital, then workers in exporting (importing) industries will support (oppose) free trade. In the short run, the industry of employment of workers will affect their attitudes toward free trade. In the long run HO model, the industry of employment should not matter. In the long run then, the skill level of workers should determine their attitudes toward free trade. Opinions Toward Free Trade In the NES survey, the industry of employment was somewhat important in explaining respondents’ attitudes toward free trade, but skill level was much more important. Workers in export-oriented industries are somewhat more likely to favor free trade. Those in import-competing industries favoring import restrictions. A much more important determinant of the attitudes toward free trade is the skill level of workers, measured by wages or years of education. This suggests respondents are considering long run earnings as predicted by HO and Stolper-Samuelson. Heckscher-Ohlin Model No Trade Equilibrium Price The no-trade prices reflect the differing amounts of resources found in the two countries. Home has abundant capital. Computer production is capital intensive. The no-trade relative price of computers is lower in Home. The same logic applies to Foreign. Foreign has abundant labor. Shoe production is labor intensive. The no-trade relative price of computers is higher in Foreign. People in Foreign are willing to give up more shoes for one computer than in Home since they have a l

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