曼昆《经济学原理》applicationsintltrade--(汉魅HanMei—经济金融类汇总分享).ppt

9 Application: International Trade What determines whether a country imports or exports a good? Who gains and who loses from free trade among countries? What are the arguments that people use to advocate trade restrictions? THE DETERMINANTS OF TRADE Equilibrium Without Trade Assume: A country is isolated from rest of the world and produces steel. The market for steel consists of the buyers and sellers in the country. No one in the country is allowed to import or export steel. Figure 1The Equilibrium without International Trade The Equilibrium Without International Trade Equilibrium Without Trade Results: Domestic price adjusts to balance demand and supply. The sum of consumer and producer surplus measures the total benefits that buyers and sellers receive. The World Price and Comparative Advantage If the country decides to engage in international trade, will it be an importer or exporter of steel? The World Price and Comparative Advantage The effects of free trade can be shown by comparing the domestic price of a good without trade and the world price of the good. The world price refers to the price that prevails in the world market for that good. The World Price and Comparative Advantage If a country has a comparative advantage, then the domestic price will be below the world price, and the country will be an exporter of the good. The World Price and Comparative Advantage If the country does not have a comparative advantage, then the domestic price will be higher than the world price, and the country will be an importer of the good. Figure 2 International Trade in an Exporting Country Figure 3 How Free Trade Affects Welfare in an Exporting Country Figure 3 How Free Trade Affects Welfare in an Exporting Country How Free Trade Affects Welfare in an Exporting Country THE WINNERS AND LOSERS FROM TRADE The analysis of an exporting country yields two conclusions: Domestic producers of the good are better off, and domestic consumers of the good are worse off. Trade r