国际贸易专业英语第二版课件檀文茹主编 ISBN9787811343076lesson 1.pptVIP

国际贸易专业英语（第二版） 檀文茹 主编 Unit One International Trade Theories Pre-reading questions: What is international trade about? What are the incentives for countries to engage in international trade? What theories on international trade have you studied? Which theories do you think best explain the nature of international trade? In what way have these theories helped you understand international trade? Mercantilism International trade is a zero sum game, i.e. that the benefit which one country gains from international trade means a corresponding detriment to another country. The Absolute Cost Model A country has the lowest production costs and supplies foreign markets, too, as a result. Example: say Turkey and Greece have the same average wage level The Comparative Cost Model The comparative cost model is based on two countries, two products and one factor of production: labor. Technical know-how or the state of technology is different in the two countries. There are also constant returns to scale and perfect competition. The Heckscher-Ohlin-Samuelson (HOS) Model This model was also based on the comparative cost concept and the idea that competitive positions depend on the supply conditions in specific locations and are therefore linked to countries (rather than companies). The Leontief Paradox Empirical research conducted by Leontief quite soon after the Second World War showed that the specialization process in the US, for example, did not correspond to what HOS predicted (and this was repeatedly found in later research). Where free trade ought to have caused the Americans to concentrate increasingly on producing relatively capital- intensive goods – the goods in which the US had a comparative advantage – this did not appear to be what happened in practice; the US imported relatively capital- intensive goods instead of exporting them. Factor Intensity Reversal A fundamental criticism of the HOS model was that it assumes that the sectors can be arranged in order of cap