曼昆经济学原理英文课件Chap09.ppt

Application:International Trade Chapter 9 International Trade What determines whether a country imports or exports a good? International Trade Who gains and who loses from free trade among countries? International Trade What are the arguments that people use to advocate trade restrictions? 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. Equilibrium Without 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. World Price and Comparative Advantage If the country decides to engage in international trade, will it be an importer or exporter of steel? 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 prevailing price in the world markets. A country will either be an exporter or an importer of the good. 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. 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. International Trade in an Exporting Country... How Free Trade Affects Welfare in an Exporting Country... How Free Trade Affects Welfare in an Exporting Country... How Free Trade Affects Welfare in an Exporting Country... Changes in Welfare from Free Trade: The Case of an Exporting Country How Free Trade Affects Welfare in an Exporting Country The analysis of an exporting country yields two conclusions: Domestic produc