国际经济学克鲁格曼第八版第四章.ppt

Suppose the price of cloth relative to the price of food is calculated as (PC/PF)1. If we also know the direct relationship between relative goods prices and relative factor prices given by the SS curve, then we can determine relative factor prices--the wage/rental ratio. Once we determine the wage/rental ratio and determine the CC and FF curves, we can determine the land to labor ratio in both the cloth and food industries. In sum, given goods prices, we can determine not only factor prices, but factor levels in the Heckscher-Ohlin model. Copyright ? 2006 Pearson Addison-Wesley. All rights reserved. 4-* for domestic country 1 0 Qc Qf Cc Q’c Cf’ Cf Q’f Pc/Pf (Pc/Pf)’ 2 Copyright ? 2006 Pearson Addison-Wesley. All rights reserved. 4-* Trade in the Heckscher-Ohlin Model (cont.) An economy will export goods that are intensive in its abundant factors of production and import goods that are intensive in its scarce factors of production. This proposition is called the Heckscher-Ohlin theorem Copyright ? 2006 Pearson Addison-Wesley. All rights reserved. 4-* Trade in the Heckscher-Ohlin Model (cont.) Note that the budget constraint touches the PPF: a country can always afford to consume what it produces. However, a country need not consume only the goods and services that it produces with trade. Exports and imports can be greater than zero. Furthermore, a country can afford to consume more of both goods with trade. Copyright ? 2006 Pearson Addison-Wesley. All rights reserved. 4-* Trade in the Heckscher-Ohlin Model (cont.) Copyright ? 2006 Pearson Addison-Wesley. All rights reserved. 4-* Trade in the Heckscher-Ohlin Model (cont.) Because an economy can afford to consume more with trade, the country as a whole is made better off. But some do not gain from trade, unless the model accounts for a redistribution of income. Trade changes relative prices of goods, which have effects on the relative earnings of labor and land. A rise in the price of cloth raises the p