国际贸易理论与实务(Chapter 3).ppt

To Ricardo, it is the differences in labor productivity between nations that constitute the basic principle of comparative advantage. However, to Heckscher and Ohlin, it is the differences in cost of resources between nations that underlie the comparative advantage. The H-O theory begins by assuming that labor and capital are the two main factors of production. Capital here means all the physical equipments used in production such as machines, vehicles of transportation, factory buildings and office supplies. The theory defines the factor endowment or proportion as the capital-labor ratio, which refers to the ratio of the quantity of capital to the quantity of labor used in the process of producing goods. An example to illustrate the H-O theory Table 3-1 A numerical example illustrating the H-O theory Two products: steel and cloth one unit of steel requires 1 labor and 4 capital to produce; and one unit of cloth requires 2 labors and 0.02capital to produce. (K/L)steel (K/L)cloth (4/10.02/2) steel is relatively capital intensive while cloth is labor intensive The relative prices of capital to cloth in both Japan and China In Japan: unit prices of labor and capital respectively $10,$5 In China: $4, $7 the relative price of capital to labor in Japan (5/10) that in China (7/4) (r/w)J(r/w)C Japan is relatively capital abundant and China is relatively labor abundant. The price of each produce in each country the price of steel ($30) in Japan is cheaper than that ($32) in China the price of cloth ($8.14) in China is cheaper than that ($20.1) in Japan 3.7 The Stolper-Samuelson Theorem (斯托尔珀-萨缪尔森定理)(S-S 定理) explains the H-O model regarding the income distribution effects of trade argues that with full employment before and after trade takes place, the increase in the price of abundant factor and the fall in the price of the scarce factor because of trade imply that the owners of the abundant factor