国际经济学（英文版） 2comparativeadvantage.ppt

PART ONE International trade theory Historical development of Trade Theories What’s Int’l Trade Theory About? Basis for Trade: Why do nations voluntarily engage in trade? Pattern of Trade: What commodities are traded and which commodities are exported and imported by each nation? Gains from Trade: How are gains from trade generated? How large are the gains and how are they divided among the trading nations? CHAPTER TWO Comparative Advantage Chapter Structure Mercantilism Trade Based on Absolute Advantage Trade Based on Comparative Advantage Production Possibility Frontier and Opportunity Costs Basis for and gains from trade under constant costs 1.Mercantilism (16c-18c) The central Belief of Mercantilism: National well-being or wealth was based on national holdings of gold and silver. 1.The government had to stimulate the nation’s exports and restrict its imports. 2.The way for a nation to become rich and powerful was to export more than it imported. 3.Mercantilism regarded trade as a zero-sum game—one nation could gain only at the expense of some other countries. If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it from them with some part of the product of our own industry, employed in a way in which we have some advantage. --- The Wealth of Nations, 1776 What is Absolute Advantage? When one nation is more efficient or has lower cost than another in the production of one commodity, we consider that it has an absolute advantage on this commodity. Core of Absolute Advantage Theory Trade between nations is based on absolute advantage. Both nations can gain by each specializing in the production of the commodity of its absolute advantage and exchanging part of its output with the other nation for the commodity of its absolute disadvantage. An example Range for mutually beneficial trade Core of Absolute Advantage Theory Trade between nations is based on absolute advantage. Both nations can gain by ea