国际经济学：理论与政策（第十一版）保罗·R.克鲁格曼-C04_Krugman_11e.pptxVIP

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国际经济学：理论与政策（第十一版）保罗·R.克鲁格曼-C04_Krugman_11e.pptx

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International Economics: Theory and PolicyEleventh EditionChapter 4Specific Factors and Income DistributionCopyright ? 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved Learning Objectives4.1 Understand how a mobile factor will respond to price changes by moving across sectors.4.2 Explain why trade will generate both winners and losers in the short run.4.3 Understand the meaning of gains from trade when there are losers.4.4 Discuss the reasons why trade is a politically contentious issue.4.5 Explain the arguments in favor of free trade despite the existence of losers. PreviewIntroductionThe Specific Factors ModelInternational Trade in the Specific Factors ModelIncome Distribution and the Gains from TradePolitical Economy of Trade: A Preliminary ViewInternational Labor MobilitySummary IntroductionIf trade is so good for the economy, why is there such opposition?Two main reasons why international trade has strong effects on the distribution of income within a country:Resources cannot move immediately or costlessly from one industry to another.Industries differ in the factors of production they demand. The Specific Factors Model (1 of 4)The specific factors model allows trade to affect income distribution.Assumptions of the model:Two goods, cloth and food.Three factors of production: labor (L), capital (K) and land (T for terrain).Perfect competition prevails in all markets. The Specific Factors Model (2 of 4)Cloth produced using capital and labor (but not land).Food produced using land and labor (but not capital). Labor is a mobile factor that can move between sectors.Land and capital are both specific factors used only in the production of one good. The Specific Factors Model (3 of 4)How much of each good does the economy produce?The production function for cloth gives the quantity of cloth that can be produced given any input of capital and labor:QC is the output of clothK is the capital stockLC is the labor force employed in cloth The Specific Factors Mo