萨尔瓦多《国际经济学》英文答案10
《国际经济学(英文版)》选择题汇总版(附标准答案)
《国际经济学(英文版)》选择题汇总版(附答案)————————————————————————————————作者：————————————————————————————————日期：《国际经济学》选择题汇总版（附答案）Ch1-Ch31.The United States is less dependent on trade than most other countries becauseA) the United States is a relatively large country with diverse resources.B) the United States is a “Superpower.”C)the military power of the United States makes it less dependent on anything.D) the United States invests in many other countries.E) many countries invest in the United States.2. Because the Constitution forbids restraints on interstate trade,A) the U.S. may not impose tariffs on imports from NAFTA countries.B) the U.S. may not affect the international value of the $ U.S.C) the U.S. may not put restraints on foreign investments in California if it involves a financial intermediary in New York State.D) the U.S. may not impose export duties.E) the U.S. may not disrupt commerce between Florida and Hawaii.3. International economics can be divided into two broad sub-fieldsA) macro and micro.B) developed and less developed.C) monetary and barter.D) international trade and international money.E) static and dynamic.4. International monetary analysis focuses onA) the real side of the international economy.B) the international trade side of the international economy.C) the international investment side of the international economy.D) the issues of international cooperation between Central Banks.E) the monetary side of the international economy, such as currency exchange.5. The gravity model offers a logical explanation for the fact thatA)trade between Asia and the U.S. has grown faster than NAFTA trade.B) trade in services has grown faster than trade in goods.C) trade in manufactures has grown faster than in agricultural products.D) Intra-European Union trade exceeds international trade by the European Union.E) the U.S. trades more with Western Europe than it does with Canada.6. The gravity model explains whyA)trade between Sweden and Germany exceeds that between Sweden and Spain.B)countries with oil reserves tend to export oil.C)capital rich countries export capital intensive products.D) intra-industry trade is relatively more important than other forms of trade between neighboringcountries.E) European countries rely most often on natural resources.7. Why does the gravity model work?A) Large economies became large because they were engaged in international trade.B) Large economies have relatively large incomes, and hence spend more on government promotion of trade and investment.C) Large economies have relatively larger areas which raises the probability that a productive activity will take place within the borders of that country.D) Large economies tend to have large incomes and tend to spend more on imports.E) Large economies tend to avoid trading with small economies.8. We see that the Netherlands, Belgium, and Ireland trade considerably more with the United States than with many other countries.A) This is explained by the gravity model, since these are all large countries.B) This is explained by the gravity model, since these are all small countries.C) This fails to be consistent with the gravity model, since these are small countries.D)This fails to be consistent with the gravity model, since these are large countries.E)This is explained by the gravity model, since they do not share borders.9. In the present, most of the exports from China areA) manufactured goods.B) services.C)primary products including agricultural.D) technology intensive products.E) overpriced by world market standards.10. A country engaging in trade according to the principles of comparative advantage gains from trade because itA) is producing exports indirectly more efficiently than it could alternatively.B) is producing imports indirectly more efficiently than it could domestically.C) is producing exports using fewer labor units.D) is producing imports indirectly using fewer labor units.E) is producing exports while outsourcing services.11. The Ricardian model attributes the gains from trade associated with the principle of comparative advantage result toA) differences in technology.B) differences in preferences.C)differences in labor productivity.D) differences in resources.E) gravity relationships among countries.12. A nation engaging in trade according to the Ricardian model will find its consumption bundleA) inside its production possibilities frontier.B)on its production possibilities frontier.C)outside its production possibilities frontier.D) inside its trade-partner's production possibilities frontier.E)on its trade-partner's production possibilities frontier.13. Assume that labor is the only factor of production and that wages in the United States equal $20 per hour while wages in Japan are $10 per hour. Production costs would be lower in the United States as compared to Japan ifA) U.S. labor productivity equaled 40 units per hour and Japan's 15 units per hour.B) U.S. labor productivity equaled 30 units per hour and Japan's 20 units per hour.C) U.S. labor productivity equaled 20 units per hour and Japan's 30 units per hour.D) U.S. labor productivity equaled 15 units per hour and Japan's 25 units per hour.E) U.S. labor productivity equaled 15 units per hour and Japan's 40 units per hour.14. In a two-country, two-product world, the statement “Germany enjoys a comparative advantage over France in autos relative to ships”is equivalent toA) France having a comparative advantage over Germany in ships.B) France having a comparative disadvantage compared to Germany in autos and ships.C) Germany having a comparative advantage over France in autos and ships.D) France having no comparative advantage over Germany.E) France should produce autos.15. If the United States' production possibility frontier was flatter to the widget axis, whereas Germany's was flatter to the butter axis, we know thatA) the United States has no comparative advantageB) Germany has a comparative advantage in butter.C) the U.S. has a comparative advantage in butter.D) Germany has comparative advantages in both products.E) the U.S. has a comparative disadvantage in widgets.Ch4-Ch51.The Ricardian model of international trade demonstrates that trade can be mutually beneficial. Why, then, do governments restrict imports of some goods?A)Trade can have substantial effects on a country's distribution of income.B) The Ricardian model is often incorrect in its prediction that trade can be mutually beneficial.C) Import restrictions are the result of trade wars between hostile countries.D) Imports are only restricted when foreign-made goods do not meet domestic standards of quality.E) Restrictions on imports are intended to benefit domestic consumers.2. Japan's trade policies with regard to rice reflect the fact thatA) japanese rice farmers have significant political power.B) Japan has a comparative advantage in rice production and therefore exports most of its rice crop.C) there would be no gains from trade available to Japan if it engaged in free trade in rice.D) there are gains from trade that Japan captures by engaging in free trade in rice.E) Japan imports most of the rice consumed in the country.3. In the specific factors model, which of the following is treated as a specific factor?A)LaborB) LandC) ClothD) FoodE) Technology4. The specific factors model assumes that there are ________ goods and ________ factor(s) of production.A) two; threeB) two; twoC) two; oneD) three; twoE) four; three5. The slope of a country's production possibility frontier with cloth measured on the horizontal and food measured on the vertical axis in the specific factors model is equal to________ and it ________ as more cloth is produced.A) -MPLF/MPLC; becomes steeperB) -MPLF/MPLC; becomes flatterC) -MPLF/MPLC; is constantD) -MPLC/MPLF; becomes steeperE) -MPLC/MPLF; is constant6. Under perfect competition, the equilibrium price of labor used to produce cloth will be equal toA)the slope of the production possibility frontier.B) the average product of labor in the production of cloth times the price of cloth.C) the ratio of the marginal product of labor in the production of cloth to the marginal product of labor in the production of food times the ratio of the price of cloth. to the price of food.D) the marginal product of labor in the production of cloth times the price of cloth.E) the price of cloth divided by the marginal product of labor in the production of cloth.7. In the specific factors model, which of the following will increase the quantity of labor used in cloth production?A)an increase in the price of cloth relative to that of foodB) an increase in the price of food relative to that of clothC) a decrease in the price of laborD) an equal percentage decrease in the price of food and clothE) an equal percentage increase in the price of food and cloth8. A country that does not engage in trade can benefit from trade only ifA)it has an absolute advantage in at least one good.B) it employs a unique technology.C) pre-trade and free-trade relative prices are not identical.D) its wage rate is below the world average.E) pre-trade and free-trade relative prices are identical.9. In the specific factors model, the effects of trade on welfare are ________ for mobile factors, ________ for fixed factors used to produce the exported good, and ________ for fixed factors used to produce the imported good.A)ambiguous; positive; negativeB) ambiguous; negative; positiveC) positive; ambiguous; ambiguousD) negative; ambiguous; ambiguousE) positive; positive; positive10.The effect of trade on specialized employees of import-competing industries will be ________ jobs and ________ pay because they are relatively ________.A)fewer; lower; mobileB) fewer; lower; immobileC) more; lower; immobileD) more; higher; mobileE) more; higher; immobile11. There is a bias in the political process against free trade becauseA)there is a high correlation between the volume of imports and the unemployment rate.B) the gains from free trade cannot be measured.C) those who gain from free trade can't compensate those who lose.D) foreign governments make large donations to U.S. political campaigns.E) those who lose from free trade are better organized than those who gain.12.In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ inA)tastes and preferences.B) military capabilities.C) the size of their economies.D) relative abundance of factors of production.E) labor productivities.13. If a country produces good Y (measured on the vertical axis) and good X (measured on the horizontal axis), then the absolute value of the slope of its production possibility frontier is equal toA)the opportunity cost of good X.B) the price of good X divided by the price of good Y.C) the price of good X divided by the price of good Y.D) the opportunity cost of good Y.E) the cost of capital (assuming that good Y is capital intensive) divided by the cost of labor.14. In the 2-factor, 2 good Heckscher-Ohlin model, trade will ________ the owners of a country's ________ factor and will ________ the good that uses that factor intensively.A)benefit; abundant; exportB)harm; abundant; importC) benefit; scarce; exportD) benefit; scarce; importE) harm; scarce; export15. The assumption of diminishing returns in the Heckscher-Ohlin model means that, unlike in the Ricardian model, it is likely thatA) countries will consume outside their production possibility frontier.B) countries will benefit from free international trade.C) countries will not be fully specialized in one product.D) comparative advantage will not determine the direction of trade.E) global production will decrease under trade.16.If Japan is relatively capital rich and the United States is relatively land rich, and if food is relatively land intensive then trade between these two, formerly autarkic countries will result inA)an increase in the relative price of food in the U.S.B) an increase in the relative price of food in Japan.C) a global increase in the relative price of food.D) a decrease in the relative price of food in both countries.E) an increase in the relative price of food in both countries.17. Starting from an autarky (no-trade) situation with Heckscher-Ohlin model, if Country H is relatively labor abundant, then once trade beginsA) rent will be unchanged but wages will rise in H.B) wages and rents should rise in H.C) wages and rents should fall in H.D) wages should fall and rents should rise in H.E) wages should rise and rents should fall in H.18.The Leontieff ParadoxA) failed to support the validity of the Heckscher-Ohlin model.B) supported the validity of the Ricardian theory of comparative advantage.C) supported the validity of the Heckscher-Ohlin model.D) failed to support the validity of the Ricardian theory.E) proved that the U.S. economy is different from all others.19. Which of the following is an assertion of the Heckscher-Ohlin model?A) Factor price equalization will occur only if there is costless mobility of all factors across borders.B) An increase in a country's labor supply will increase production of both the capital-intensive and the labor-intensive good.C) In the long-run, labor is mobile and capital is not.D) The wage-rental ratio determines the capital-labor ratio in a country's industries.E) Factor endowments determine the technology that is available to a country, which determines the good in which the country will have a comparative advantage.20. Which of the following is an assertion of the Heckscher-Ohlin model?A) An increase in a country's labor supply will increase production of the labor-intensive good and decrease production of the capital-intensive good.B) An increase in a country's labor supply will increase production of both the capital-intensive and the labor-intensive good.C) In the long-run, labor is mobile and capital is not.D) Factor price equalization will occur only if there is costless mobility of all factors across borders.E) Factor endowments determine the technology that is available to a country, which determines the good in which the country will have a comparative advantage.Ch6-Ch101.If the ratio of price of cloth (PC) divided by the price of food (PF) increases in the international marketplace, thenA) the terms of trade of cloth exporters will improve.B) all countries would be better off.C) the terms of trade of food exporters will improve.D) the terms of trade of all countries will improve.E) the terms of trade of cloth exporters will worsen.2.If the ratio of price of cloth (PC) divided by the price of food (PF) increases in the international marketplace, thenA) world relative quantity of cloth supplied will increase.B) world relative quantity of cloth supplied and demanded will increase.C) world relative quantity of cloth supplied and demanded will decrease.D) world relative quantity of cloth demanded will decrease.E) world relative quantity of food will increase.3.If the U.S. (a large country) imposes a tariff on its imported good, this will tend toA) have no effect on terms of trade.B) improve the terms of trade of the United States.C) improve the terms of trade of all countries.D) because a deterioration of U.S. terms of trade.E) raise the world price of the good imported by the United States.4.If Slovenia were a large country in world trade, then if it instituted a large set of subsidies for its exports, this mustA) decrease its marginal propensity to consume.B) have no effect on its terms of trade.C) improve its terms of trade.D) harm its terms of trade.E) harm world terms of trade.5.Internal economies of scale arise when the cost per unitA) falls as the average firm grows larger.B) rises as the industry grows larger.C) falls as the industry grows larger.D) rises as the average firm grows larger.E) remains constant over a broad range of output.6. External economies of scale will ________ average cost when output is ________ by________.A) reduce; increased; the industryB) reduce; increased; a firmC) increase; increased; a firmD) increase; increased; the industryE) reduce; reduce; the industry7. If some industries exhibit internal increasing returns to scale in each country, we should not expect to seeA) perfect competition in these industries.B) intra-industry trade between countries.C) inter-industry trade between countries.D) high levels of specialization in both countries.E) increased productivity in both countries.8. A learning curve relates ________ to ________ and is a case of ________ returns.A) unit cost; cumulative production; dynamic decreasing returnsB) output per time period; long-run marginal cost; dynamic increasing returnsC) unit cost; cumulative production; dynamic increasing returnsD) output per time period; long-run marginal cost; dynamic decreasing returnsE) labor productivity; education; increasing marginal returns9.Patterns of interregional trade are primarily determined by ________ rather than ________ because factors of production are generally ________.A) external economies; natural resources; mobileB) internal economies; external economies; mobileC) external economies; population; immobileD) internal economies; population; immobileE) population; external economies; immobile10. Monopolistic competition is associated withA) product differentiation.B) price-taking behavior.C) explicit consideration at the firm level of the strategic impact of other firms' pricing decisions.D) high profit margins in the long run.E) increasing returns to scale.11. A firm in long-run equilibrium under monopolistic competition will earnA) positive monopoly profits because each sells a differentiated product.B) zero economic profits because of free entryC) positive oligopoly profits because each firm sells a differentiated product.D) negative economic profits because it has economies of scale.E) positive economic profit if it engages in international trade.12. The most common form of price discrimination in international trade isA) dumping.B) non-tariff barriers.C) Voluntary Export Restraints.D) preferential trade arrangements.E) product boycotts.13.Consider the following two cases. In the first, a U.S. firm purchases 18% of a foreign firm. In the second, a U.S. firm builds a new production facility in a foreign country. Both are________, with the first referred to as ________ and the second as ________.A) foreign direct investment (FDI) outflows; brownfield; greenfieldB) foreign direct investment (FDI) inflows; greenfield; brownfieldC) foreign direct investment (FDI) outflows; greenfield; brownfieldD) foreign direct investment (FDI) inflows; brownfield; greenfieldE) foreign direct investment (FDI); inflows; outflows14. Specific tariffs areA) import taxes stated in specific legal statutes.B) import taxes calculated as a fixed charge for each unit of imported goods.C) import taxes calculated as a fraction of the value of the imported goods.D) the same as import quotas.E) import taxes calculated based solely on the origin country.15. A problem encountered when implementing an "infant industry" tariff is thatA) domestic consumers will purchase the foreign good regardless of the tariff.B) the industry may never "mature."C) most industries require tariff protection when they are mature.D) the tariff may hurt the industry's domestic sales.E) the tariffs fail to protect the domestic producers.16. In the country levying the tariff, the tariff willA) increase both consumer and producer surplus.B) decrease both the consumer and producer surplus.C) decrease consumer surplus and increase producer surplus.D) increase consumer surplus and decrease producer surplus.E) decrease consumer surplus but leave producers surplus unchanged.17. If the tariff on computers is not changed, but domestic computer producers shift from domestically produced semiconductors to imported components, then the effective rate of protection in the computer industry willA) increase.B) decreaseC) remain the same.D) depend on whether computers are PCs or "Supercomputers."E) no longer apply.18. When a government allows raw materials and other intermediate products to enter a country duty free, this generally results in a(an)A) effective tariff rate less than the nominal tariff rate.B) nominal tariff rate less than the effective tariff rate.C) rise in both nominal and effective tariff rates.D) fall in both nominal and effective tariff rates.E) rise in only the effective tariff rate.19. Should the home country be "large" relative to its trade partners, its imposition of a tariff on imports would lead to an increase in domestic welfare if the terms of the trade rectangle exceed the sum of theA) revenue effect plus redistribution effect.B) protective effect plus revenue effect.C) consumption effect plus redistribution effect.D) production distortion effect plus consumption distortion effect.E) terms of trade gain.20. The efficiency case made for free trade is that as trade distortions such as tariffs are dismantled and removed,A) government tariff revenue will decrease, and therefore national economic welfare will decrease.B) government tariff revenue will decrease, and therefore national economic welfare will increase.C) deadweight losses for producers and consumers will decrease, hence increasing national economic welfare.D) deadweight losses for producers and consumers will decrease, hence decreasing national economic welfare.E) government tariff revenue will increase, hence increasing national economic welfare.21. Which organization determines procedures for the settlement of international trade disputes?A) World BankB) World Trade OrganizationC) International Monetary OrganizationD) International Bank for Reconstruction and DevelopmentE) The League of Nations22. Today U.S. protectionism is concentrated inA) high-tech industries.B) labor-intensive industries.C) industries in which Japan has a comparative advantage.D) computer intensive industries.E) capital-intensive industries.23. The quantitative importance of U.S. protection of the domestic clothing industry is best explained by the fact thatA) this industry is an important employer of highly skilled labor.B) this industry is an important employer of low skilled labor.C) most of the exporters of clothing into the U.S. are poor countries.D) this industry is a politically well organized sector in the U.S.E) the technology involved is very advanced.24. The optimum tariff is most likely to apply toA) a small tariff imposed by a small country.B) a small tariff imposed by a large country.C) a large tariff imposed by a small country.D) a large tariff imposed by a large country.E) an ad valorem tariff on a small country.25. The median voter modelA) works well in the area of trade policy.B) is not intuitively reasonable.C) tends to result in biased tariff rates.D) does not work well in the area of trade policy.E) is not widely practiced in the United States.By：某某。
萨尔瓦多《国际经济学》课后习题详解(国际资源流动与跨国公司)【圣才出品】
第12章国际资源流动与跨国公司一、概念题1．脑力流失（brain drain）答：脑力流失是指在一单位内，对其经营发展具有重要作用，甚至是关键性作用的人才非单位意愿的流走，或失去其积极性的现象。
在国际资源流动中则指一些高技术及受过高级训练的人才从发展中国家迁往发达国家以及从其他发达国家迁至美国的现象。
脑力流失在欠发达地区表现更为明显。
由于欠发达地区资源、机会的限制，具备高技能的人才容易流向机会和待遇良好的发达地区。
随着经济全球化和技术革命的进一步扩展，市场竞争利益激烈，脑力流失成为一种常态，频率越来越快。
这给人才流失的企业、地区和国家都带来了严重的不利影响。
只有“以人为本”，最大限度地调动人才的积极性，为人才提供良好的发展环境，才能更好地留住人才。
2．直接投资（direct investments）答：直接投资是指投资者将货币资金直接投入投资项目，形成实物资产或者购买现有企业的投资，通过直接投资，投资者便可以拥有全部或一定数量的企业资产及经营的所有权，直接进行或参与投资的经验管理。
直接投资包括对现金、厂房、机械设备、交通工具、通讯、土地或土地使用权等各种有形资产的投资和对专利、商标、咨询服务等无形资产的投资。
其中，对外直接投资是指一国通过资本的国际转移，将其某种特定商品的生产过程由本国转移到世界的其他国家。
对外直接投资实际上是以资本这一生产要素的贸易替代了自由贸易条件下的商品贸易。
3．横向一体化（horizontal integration）答：企业增长在战略上可分为一体化扩张和多样化扩张。
一体化扩张又可分为横向一体化（水平一体化）和纵向一体化（垂直一体化）。
横向一体化是指为了扩大生产规模、降低成本、巩固企业的市场地位、提高企业竞争优势、增强企业实力而与同行业企业进行联合的一种战略。
实质是资本在同一产业和部门内的集中，目的是实现扩大规模、降低产品成本、巩固市场地位。
国际化经营是横向一体化的一种形式。
国际经济学(多米尼克萨瓦尔多)课后答案
*CHAPTER 2(Core Chapter)COMPARATIVE ADVANTAGEANSWERS TO REVIEW QUESTIONS AND PROBLEMS1. The mercantilists believed that the way for a nation to become rich and powerful was toexport more than it imported. The resulting export surplus would then be settled by an inflow of gold and silver and the more gold and silver a nation had, the richer and more powerful it was. Thus, the government had to do all in its power to stimulate th e nation’s exports and discourage and restrict imports. However, since all nations could not simultaneously have an export surplus and the amount of gold and silver was fixed at any particular point in time, one nation could gain only at the expense of other nations. The mercantilists thus preached economic nationalism, believing that national interests were basically in conflict.Adam Smith, on the other hand, believed that free trade would make all nations better off.All of this is relevant today because many of the arguments made in favor of restricting international trade to protect domestic jobs are very similar to the mercantilists arguments made three or four centuries ago. That is why we can say that “mercantilism is alive and well in the twenty-fi rst century”. Thus we have to be prepared to answer anddemonstrate that these arguments are basically wrong.2. According to Adam Smith, the basis for trade was absolute advantage, or one country beingmore productive or efficient in the production of some commodities and other countries being more productive in the production of other commodities.The gains from trade arise as each country specialized in the production of the commodities in which it had an absolute advantage and importing those commodities in which the nation had an absolute disadvantage.Adam Smith believed in free trade and laissez-faire, or as little government interference with the economic system as possible. There were to be only a few exceptions to this policy of laissez-faire and free trade. One of these was the protection of industries important for national defense.3. Ricardo’s law of comparative advantage is superior to Smith’s theory of absolute advantagein that it showed that even if a nation is less efficient than or has an absolute disadvantage in the production of all commodities with respect to the other nations, there is still a basis forbeneficial trade for all nations.The gains from trade arise from the increased production of all commodities that arises when each country specializes in the production of and exports the commoditiesof its comparative advantage and imports the other commodities.A nation that is less efficient than others will be able to export the commodities of itscomparative advantage by having its wages and other costs sufficiently lower than in othernations so as to make the commodities of its comparative advantage cheaper in terms of the same currency with respect to the other nations.4. a. In case A, the United States has an absolute and a comparative advantage in wheat andthe United Kingdom in cloth. In case B, the United States has an absolute advantage (so that the United Kingdom has an absolute disadvantage) in both commodities. In case C, theUnited States has an absolute advantage in wheat but has neither an absolute advantage nor disadvantage in cloth. In case D, the United States has an absolute advantage over theUnited Kingdom in both commodities.b. In case A, the United States has a comparative advantage in wheat and the UnitedKingdom in cloth. In case B, the United States has a comparative advantage in wheat and the United Kingdom in cloth. In case C, the United States has a comparative advantage in wheat and the United Kingdom in cloth. In case D, the United States and the United Kingdom havea comparative advantage in neither commodities.5. a. The United States gains 1C.b. The United Kingdom gains 4C.c. 3C < 4W < 8C.d. The United States would gain 3C while the United Kingdom would gain 2C.6. a. The cost in terms of labor content of producing wheat is 1/4 in the United States and 1 inthe United Kingdom, while the cost in terms of labor content of producing cloth is 1/3 in the United States and 1/2 in the United Kingdom.b. In the United States, Pw=$1.50 and Pc=$2.00.c. In the United Kingdom, Pw=£1.00 and Pc=£0.50.7. The United States has a comparative disadvantage in the production of textiles. Restrictingtextile imports would keep U.S. workers from eventually moving into industries in which the United States has a comparative advantage and in which wages are higher.8. Ricardo’s explanation of the law of comparative is unacceptable because it is based on thelabor theory of value, which is not an acceptable theory of value.The explanation of the law of comparative advantage can be based on the opportunity cost doctrine, which is an acceptable theory of value.9. The production possibilities frontier reflects the opportunity costs of producing bothcommodities in the nation.The production possibilities frontier under constant costs is a (negatively sloped) straight line.The absolute slope of the production possibilities frontier reflects or gives the price of the commodity plotted along the horizontal axis in relation to the commodity plotted along the vertical axis.10. a. See Figure 1.1.b. In the United States Pw/Pc=3/4, while in the United Kingdom, Pw/Pc=2.c. In the United States Pc/Pw=4/3, while in the United Kingdom Pc/Pw=1/2.d. See Figure 1.2.The autarky points are A and A' in the United States and the United Kingdom, respectively.The points of production with trade are B and B' in the United States and the United Kingdom, respectively.The points of consumption are E and E' in the United States and the United Kingdom, respectively. The gains from trade are shown by E > A for the U.S. and E' > A' for the U.K.ANSWERS TO REVIEW QUESTIONS AND PROBLEMS1. a. Increasing opportunity costs arise because resources or factors of production are nothomogeneous (i.e., all units of the same factor are not identical or of the same quality) and not used in the same fixed proportion or intensity in the production of all commodities.This means that as the nation produces more of a commodity; it must utilize resources that become progressively less efficient or less suited for the production of that commodity. As a result, the nation must give up more and more of the second commodity to release justenough resources to produce each additional unit of the first commodity (i.e., it facesincreasing costs).b. In the real world, the production frontiers of different nations will usually differ becauseof differences in factor endowments and technology.2. a. See Figure3.1.b. The slope of the transformationcurve increases as the nationproduces more of X and decreasesas the nation produces more of Y.These reflect increasingopportunity costs as the nationproduces more of X or Y.3. a. See Figures 3.2a and 3.2b.b. Nation 1 has a comparative advantage in X and Nation 2 in Y.c. If the relative commodity price line in autarky has equal slope in both nations. This is rare.4. a. See Figures 3.3a and 3.3 b. Points B and B’ are the production points in Nations 1 and 2,respectively, with specialization and trade and E and E’ are the consumption points.b. Nation 1 gains by the amount by which community indifference curve III (point E) isabove indifference curve I (point A). Nation 2 gains to the extent that community indifference curve III’ (point E’) is above indifference curve I’ (point A).5. a. The equilibrium-relative commodity price in isolation is the relative price that prevailsin the nation without trade or in autarky.b. The equilibrium-relative commodity price in isolation for the commodity plotted alongthe horizontal axis is given by the (absolute) slope of the tangent of the production frontier and the community indifference curve at the point of production and consumption in thenation in isolation.c. The nation with the lower equilibrium relative commodity price in isolation or autarkyhas a comparative advantage in the commodity measured along the commodity axis and a comparative disadvantage in the commodity measured along the vertical axis.6. a. Nation 1 is better off at point E’ than at point A’ because point E’ is on higher communityindifference curve III than at point A, which is on lower community indifference curve I.b. Nation 1 consumes less of commodity Y at point E’ (40Y) than at point A’ (60Y) becauseP Y/P X is much higher at point E’ (P B’ =1) than at point A’ (P A’ =1/4, the inverse of P X/P Y=4).7. a. The reason for incomplete specialization under increasing costs is that as each nationspecializes in the production of the commodity of its comparative advantage, the relative commodity price in each nation moves toward each other (i.e., become less unequal) until they are identical in both nations. At that point, it does not pay for either nation to continue to expand the production of the commodity of its initial comparative advantage. This occurs before either nation has completely specialized in production.b. Under constant costs, each nation specializes completely in production of thecommodity of its comparative advantage (i.e., produces only that commodity). The reason is that since it pays for the nation to obtain some of the commodity of its comparativedisadvantage from the other nation, then it pays for the nation to get all of the commodity of its comparative disadvantage from the other nation (i.e., to specialize completely in the production of the commodity of its comparative advantage).8. See Figure 3.5 (Please disregard Figure 3.4, which shows how to derive the demand andsupply curve for commodity X for Nation 1 and Nation 2 that are used to show how theequilibrium relative commodity price is determined with trade – a topic that is covered inAppendix A3.1.Nations 1 and 2 have identical production frontiers (shown by a single curve) but different tastes (indifference curves). In isolation, Nation 1 produces and consumes at point A and Nation 2 at point A’. Since P A < P A’, Nation 1 has a comparative advantage in X and Nation2 in Y.With trade, Nation 1 specializes in the production of X and produces at B, while Nation 2 specializes in Y and produces at B’ (which coincides with B). By exchanging BC = C’E’ of X for CE = C’B of Y with each other (see trade triangles BCE and B’C’E’), Nation 1 ends up consuming at E on indifference curve III (higher than indifference curve I at point A) and Nation 2 consumes at on indifference curve III’ (higher than indifference curve I’ at po int A’).9. a. If the terms of trade of a nation improved from 100 to 110 over a given period of time, theterms of trade of the trade partner would deteriorate by about 9 percent over the same period of time [(100-110)/110 = -0.09 =0.9%].b. A deterioration in the terms of trade of the trade partner can be said to be unfavorable to thetrade partner because the trade partner must pay a higher price for its imports in terms of its exports.c. This does not necessarily mean that the welfare of the trade partner has decreased becausethe deterioration in its terms of trade may have resulted from an increase in productivity that is shared with the other nation.10. It is true that Mexico's wages are much lower than U.S. wages (they are about one fifth of theaverage wage in the United States), but labor productivity is much higher in the United Statesand so labor costs are not necessarily higher than in Mexico. In any event, trade can still be based on comparative advantage.*CHAPTER 4(Core Chapter)THE HECKSCHER-OHLIN AND OTHER TRADE THEORIES ANSWERS TO REVIEW QUESTIONS AND PROBLEMS1. a. The Heckscher–Ohlin (H-0) theorem postulates that a nation will export thosecommodi ties whose production requires the intensive use of the nation’s relativelyabundant and cheap factor and import the commodities whose production requires theintensive use of the nation’s relatively scarce and expensive factor. In short, the relatively labor-rich nation exports relatively labor-intensive commodities and imports the relatively capital-intensive commodities.b. Heckscher and Ohlin identify the relative difference in factor endowments amongnations as the basic determinant of comparative advantage and international trade.c. The H-O Theory represents an extension of the standard trade model because itexplains the basis for comparative advantage (classical economists, such as Ricardo hadassumed it) and examines the effect of international trade on factor prices and incomedistribution (which classical economists had left unanswered).2. See Figure 4.1.3. a. The factor–price equalization theorem postulates that international trade will bringabout the equalization of the returns to homogeneous or identical factors across nations.b. The Stopler-Samuelson theorem postulates that free international trade reduces the realincome of the nation’s relatively scarce factor and increases the real income of the nation’s relatively abundant factor.c. The specific-factors model postulates that the opening of trade (1) benefits the specificfactor used in the production of t he nation’s export commodity, (2) harms the specific factor used in the production of the nation’s import-competing industry, and (3) leads to anambiguous effect (i.e., it may benefit or harm) the mobile factor.d. Trade acts as a substitute for the international mobility of factors of production in itseffect on factor prices. With perfect mobility, labor would migrate from the low-wagenation to the high-wage nation until wages in the two nations are equalized. Similarly,capital would move from the low-interest to the high-interest nation until the rate ofinterest was equalized in the two nations.4. a. The Leontief paradox refers to the original Leontief’s finding that U.S. importsubstitutes were more K-intensive than U.S. exports. This was the opposite of what the H-O theorem postulated.b. The Leontief paradox was resolved by including human capital into the calculationsand excluding industries based on natural resources. Recent research using data on many sectors, for many countries, over many years, and considering that countries couldspecialize in a particular subset or group of commodities that were best suited to theirspecific factor endowments, provides strong support for the H-O theorem.c. The Hecksher-Olhin theory remains the centerpiece of modern trade theory for explaininginternational trade today. To be sure, there are other forces (such as economies of scale,product differentiation, and technological differences across countries) that provide additional reasons and explanations for some international trade not explained by the basic H-O model.These other trade theories complement the basic H-O model in explaining the pattern ofinternational trade in the world today.5. International trade with developing economies, especially newly industrializing economies(NIEs), contributed in two ways to increased wage inequalities between skilled and unskilled workers in the United States during the past two decades. Directly, by reducing the demand for unskilled workers as a result of increased U.S. imports of labor-intensive manufactures and, indirectly, by speeding up the introduction of labor-saving innovations, which furtherreduced the U.S. demand for unskilled workers. International trade, however, was only asmall cause of increased wage inequalities in the United States. The most important causewas technological change.6. a. Economies of scale refer to the production situation where output grows proportionatelymore than the increase in inputs or factors of production. For example, output may morethan double with a doubling of inputs.b. Even if two nations were identical in every respect, there is still a basis for mutuallybeneficial trade based on economies of scale. When each nation specializes in theproduction of one commodity, the combined total world output of both commodities will be greater than without specialization when economies of scale are present. With trade, each nation then shares in these gains.c. The new international economies of scale refers to the increase in productivity resultingfrom firms purchasing parts and components from nations where they are made cheaper and better, and by establishing production facilities abroad.7. a. Product differentiation refers to products that are similar, but not identical.Intra-industry trade refers to trade in differentiated products, as opposed to inter-industry trade in completely different products.b. Intra-industry trade arises in order to take advantage of important economies of scale inproduction. That is, with intra-industry trade each firm or plant in industrial countries can specialize in the production of only one, or at most a few, varieties and styles of the same product rather than many different varieties and styles of a product and achieve economies of scale.c. With few varieties and styles, more specialized and faster machinery can be developedfor a continuous operation and a longer production run. The nation then imports othervarieties and styles from other nations. Intra-industry trade benefits consumers because of the wider range of choices (i.e., the greater variety of differentiated products) available at the lower prices made possible by economies of scale in production.*CHAPTER 5(Core Chapter)TRADE RESTRICTIONS: TARIFFSANSWERS TO REVIEW QUESTIONS AND PROBLEMS1. a. See Figure 5.1.b. Consumption is 70X, production is 50X and imports are 20X.c. The consumption effect is –30X, the production effect is +30X, the trade effect is –60X,and the revenue effect is $30 (see Figure 5.1).2. a. The consumer surplus is $250 without and $l22.50 with the tariff (see Figure 5.1).b. Of the increase in the revenue of producers with the tariff (as compared with theirrevenues under free trade), $22.50 represents the increase in production costs and another $22.50 represents the increase in rent or producer surplus (see Figure 5.1).c. The dollar value or the protection cost of the tariff is $45 (see Figure 5.1).3.The dollar value or the protection cost of the tariff is $45 (see Figure 5.2).4.The dollar value or the protection cost of the tariff is $45 (see Figure5.3).5. The optimum tariff is the tariff that maximizes the net benefit resulting from theimprovement in the nation’s terms of trade against the negative effect resulting fromreduction in the volume of trade.6. a. When a nation imposes an optimum tariff, the trad e partner’s welfare declines becauseof the lower volume of trade and the deterioration in its terms of trade.b. The trade partner is likely to retaliate and in the end both nations are likely to losebecause of the reduction in the volume of trade.7. Even when the trade partner does not retaliate when one nation imposes the optimum tariff,the gains of the tariff-imposing nation are less than the losses of the trade partner, so thatthe world as a whole is worse off than under free trade. It is in this sense that free trademaximizes world welfare.8. a. The nominal tariff is calculated on the market price of the product or service. The rateof effective protection, on the other hand, is calculated on the value added in the nation. It is equal to the value of the price of the commodity or service minus the value of theimported inputs used in the production of the commodity or service.b. The nominal tariff is important to consumers because it determines by how much theprice of the imported commodity increases. The rate of effective protection is important for domestic producers because it determines the actual rate of protection provided by thetariff to domestic processing.9. a. Rates of effective protection in industrial nations are generally much higher than thecorresponding nominal rates and increase with the degree of processing.b. The tariff structure of developed nations is of great concern for developing nationsbecause it discourages manufacturing production in developing nations.10. If a nation reduces the nominal tariff on the importation of the raw materials required toproduce a commodity but does not reduce the tariff on the importation of the finalcommodity produced with the imported raw material, then the effective tariff rates willincrease relative to the nominal tariff rate on the commodity.*CHAPTER 6(Core Chapter)NONTARIFF TRADE BARRIERS ANDTHE POLITICAL ECONOMY OF PROTECTIONISMANSWERS TO REVIEW QUESTIONS AND PROBLEMS1. a. An import quota will increase the price of the product to domestic consumers, reducethe domestic consumption of the good, increase domestic production, and result in aprotection or deadweight loss to the economy.b. The effects of an import quota are identical to those of an equivalent import tariff,except that with a quota the government does not collect a tariff revenue (unless it auctions off import quotas to the highest bidder). The import quota is also more restrictive than an equivalent import tariff because foreign producers cannot increase their exports bylowering their prices.2.By penciling in D”X in Figure 1, we can see that the effects of the import quota are:P x=$2.00 and consumption is 60X, of which 40X are produced domestically and 20X areimported; by auctioning off import licenses, the revenue effect would be $20.3.The effects of an export quota of 20X are identical to those of an import quota of 20X or a100 percent import tariff on commodity X, except that the revenue effect is collected by the exporters, rather than by the domestic importers or their government.7. a. The infant-industry argument postulates that temporary protection may be justified inorder to allow a developing nation to develop an industry in which it has a potentialcomparative advantage. Temporary trade protection is then justified to establish and protect the domestic industr y during its “infancy” until it can grow and meet foreign competition.For this argument to be valid, however, protection must be temporary and the return in the grown-up industry must be sufficiently high to also offset the higher prices paid bydomestic consumers of the commodity during the period of infancy.b. The infant-industry argument must be qualified in several important ways to beacceptable. First, this argument is more justified for developing nations (where capitalmarkets may not function properly) than for industrial nations. Second, it is usuallydifficult to identify which industry or potential industry qualifies for this treatment, andexperience has shown that protection, once given, is difficult to remove. Third, and most important, what trade protection (say in the form of an import tariff) can do, an equivalent production subsidy to the infant industry can do better.8. a. According to strategic industrial trade policy a nation can create a comparativeadvantage (through temporary trade protection, subsidies, tax benefits, and cooperativegovernment–industry programs) in a high-technology field deemed crucial to future growth in the nation.b. There are also serious difficulties in carrying strategic industrial and trade policies.First, it is extremely difficult to pick winners (i.e., choose the industries that will contribute significantly to growth in the future). Second, if most leading nations undertake strategictrade policies at the same time, their efforts are largely neutralized. Third, when a country does achieve substantial success with a strategic trade policy, this comes at the expense of other countries (i.e., it is a beggar-thy-neighbor policy), which are, therefore, likely to retaliate. Faced with all these practical difficulties, even supporters of strategic trade policy grudgingly acknowledge that free trade is still the best policy, after all.*CHAPTER 7(Core Chapter)ECONOMIC INTEGRATIONANSWERS TO REVIEW QUESTIONS AND PROBLEMS1.If Nation A imposes a 100 percent ad valorem tariff on imports of commodity X fromNation B and Nation C, Nation A will produce commodity X domestically because thedomestic price of commodity X is $10 as compared with the tariff-inclusive price of $16 if Nation A imported commodity X from Nation B and $12 if Nation A imported commodity X from nation C.2. a. If Nation A forms a customs union with Nation B, Nation A will import commodity Xfrom Nation B at the price of $8 instead of producing it itself at $10 or importing it fromNation C at the tariff-inclusive price of $12.b. The formation by Nation A of a customs union with Nation B leads to trade creationonly because Nation A replaces the domestic production of commodity X at Px=$10 with tariff-free imports of commodity X from Nation B at Px=$8.3.If Nation A imposes a 50 percent ad valorem tariff on imports of commodity X fromNation B and Nation C, Nation A will import commodity X from nation C at thetariff-inclusive price of $9 instead of producing commodity X itself or importing it from Nation B at the tariff-inclusive price of $12.4. a. If Nation A forms a customs union with Nation B, Nation A will import commodity Xfrom Nation B at the price of $8 instead of importing it from Nation C at the tariff-inclusive price of $9.b. The formation by Nation A of a customs union with Nation B leads not only to tradecreation but also to trade diversion because it replaces lower-cost imports of commodity X of $6 (from the point of view of Nation A as a whole) with higher priced imports ofCommodity X from Nation B at $8.Specifically, Nation A's importers do not import commodity X from Nation C because the tariff-inclusive price of commodity X from Nation C is $9 as compared with the no-tariff price of $8 for imports of commodity X from Nation B. However, since the government of Nation A collects the $3 tariff per unit on imports of commodity X fromNation C, the net effective price for imports of commodity X from Nation C is really $6 for Nation A as a whole.5. a. See Figure 7.1.b. The net gain from the trade-diverting customs union shown in Figure 1 is given byC'JJ'+B'HH'-MJ'H'N. As contrasted with the case in Figure 7-1 in the text, however, the sum of the areas of the two triangles (measuring gains) is here greater than the area therectangle (measuring the loss). Thus, the nation would now gain from the formation of acustom union. Had we drawn the figure on graph paper, we would have been able tomeasure the net gain in monetary terms also.6. A customs union that leads to both trade creation and trade diversion is more likely to leadto a net positive welfare gain of the nation joining the union (1) the smaller is the relative inefficiency of the union member in relation to the non-union member and (2) the higher is the level of the tariff imposed by the customs union on the non-union member.7.The dynamic benefits resulting from the formation of a customs union are (1) increasedcompetition, (2) economies of scale, (3) stimulus to investment, and (4) better utilization of economic resources. These are likely to be much more significant than the static benefits.8.See Figure 7.2. The formation of the customs union has no effect.。
国际经济学英文课件(萨尔瓦多第十版)
International Economic Theories and Policies ■ International Trade Theory 国际贸易理论
■ Analyzes the basis of and the gains from international trade.
FIGURE 1-3 Imports and Exports as a Percentage of U.S. GDP, 1965-2001.
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
■ 1980 to present
■ Most pervasive and dramatic period of globalization 全球化最广泛和剧烈的阶段
■ Fueled by improvements in telecommunications and transportation 受益于电信和运输极大改善
imports and exports of goods and services to GDP 用一国商品和服务进出口总值比上GDP的比值来 粗略衡量
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
International Trade and the Nation’s Standard of Living
国际经济学(外语)习题10
Chapter 10 - Statement of International TransactionsI. Objective Questions1. Which of the following transactions would not be a component of the balance of trade?(a) an American automobile dealer buys cars from Volkswagon in West Germany.(b) an American multinational establishes a foreign subsidiary.(c) an American multinational receives a shipment of goods from its foreign subsidiary.(d) the U.S. exports wheat to Russia.2. Interest earned on American held foreign assets would be included in(a) the balance on merchandise trade.(b) the balance on goods and services.(c) the capital account balance.(d) none of the above.3. The capital account measures the(a) difference between capital inflows and outflows.(b) total value of foreign assets held.(c) total return on foreign assets.(d) all of the above.4. Under a system of fixed exchange rates, the exchange rate is maintained through(a) balance of payments disequilibrium.(b) maintaining a constant level of official reserves.(c) changes in the level of official reserves.(d) changes in the volume of international trade.5. Countries with a trade deficit are(a) usually capital-importing.(b) usually capital-exporting.(c) exporting more than they are importing.(d) none of the above.6. A U.S. government grant-in-aid to Poland would be included in(a) the balance on goods and services.(b) the balance on merchandise trade.(c) the current account balance.(d) none of the above.7. A decrease in foreign assets in the U.S. is a(a) capital outflow and a "minus" entry on the balance of payments.(b) capital outflow and a "plus" entry on the balance of payments.(c) capital inflow and a "minus" entry on the balance of payments.(d) capital inflow and a "plus" entry on the balance of payments.8. In the balance of payments accounts(a) both direct foreign investment (DFI) and income from it appear in the capital account.(b) DFI appears in the current account and income from it appears in the capital account.(c) DFI appears in the capital account and income from it appears in the current account.(d) both DFI and income from it appear in the current account.9. In the balance of payments accounts all of the following are autonomous items except(a) imports.(b) exports.(c) foreign investment.(d) changes in official reserves.10. Which of the following is a limitation of balance of payments statistics?(a) some accounts, such as private capital flows, are inaccurate.(b) the commodity composition of trade is not reflected.(c) the sales of foreign subsidiaries are not included.(d) all of the above.11. Which of the following is not an example of a unilateral transfer?(a) a U.S. foreign aid package to Pakistan.(b) a U.S. government loan to Poland.(c) money sent by naturalized Americans to their families in their home countries.(d) none of the above.12. Which governmental agency compiles international transactions statement statistics?(a) Special Trade Representative.(b) Franklin Mint.(c) Department of Commerce.(d) International Trade Commission.U.S. International Transactions Table 20XX ($ bill.)1. Merchandise exports 202. Merchandise imports -303. Service exports 104. Service imports -55. Income receipts on U.S. assets abroad 106. Income payments on foreign assets in the U.S. -57. Government grant, private remittances -58. Change in U.S. private assets abroad, net -109. Change in foreign private assets in the U.S., net 2010. Statistical discrepancy ?11. Change in U.S. Official Reserves, net -512. Change in Foreign Official Reserves, net 10 Use the above table to answer the next 10 questions.13. The statistical discrepancy entry should be(a) zero.(b) 10.(c) 5.(d) -10.14. The following items are autonomous:(a) 1 through 9.(b) 1 through 6.(c) 1 through 10.(d) 9 and 10.15. The following are financing items:(a) 5 through 7.(b) 5 through 9.(c) 11 and 12.(d) 1 through 7.16. The balance on merchandise trade is(a) -10.(b) 10.(c) 30.(d) 5.17. The balance on goods and services is(a) 10.(b) -10.(c) -5.(d) 5.18. The balance on current account is(a) 10.(b) -5.(c) 5.(d) -10.19. The financial account balance is(a) 10.(b) 0.(c) 5.(d) -5.20. The official reserve transactions balance is(a) 10.(b) -10.(c) 5.(d) -5.21. The overall international transactions statement indicates a(a) surplus of 10.(b) deficit of 10.(c) deficit of 5.(d) surplus of 5.22. The imbalance in the above question was balanced by(a) an increase in U.S. and decline in foreign official reserve assets.(b) a decrease in both U.S. and foreign official reserve assets.(c) an increase in both U.S. and foreign official reserve assets.(d) a decrease in U.S. and an increase in foreign official reserve assets.23. Which of the following balances is given attention by the news media because it is equated witha loss or gain of jobs?(a) official reserve transactions balance.(b) merchandise trade balance.(c) current account balance.(d) capital account balance.24. Which of the following gives rise to outpayments?(a) exports.(b) capital inflow.(c) receipts of income from past U.S. investments abroad.(d) capital outflow.25. The best overall measure of the surplus or deficit in the transactions statement is(a) changes in official reserve holdings.(b) balance on goods and services.(c) statistical discrepancy.(d) current account balance.26. The statistical discrepancy in the transactions statement is included in the(a) merchandise trade balance.(b) current account balance.(c) balance on goods and services.(d) capital account balance.27. Deficits on autonomous transactions under freely floating exchange rates result in(a) the statistical discrepancy.(b) variations in exchange rates.(c) changes in official reserve asset holdings.(d) changes in interest rates.28. Receipts of income from past U.S. investments are included in the transactions statement as(a) official reserve assets.(b) merchandise trade.(c) services.(d) private remittances.29. Annual U.S. investments abroad are included in the transactions statement as(a) official reserve assets.(b) services.(c) private remittances.(d) private capital flows.30. International transactions that constitute a response to general economic factors (i.e. relativeprices, interest rates) are termed(a) autonomous.(b) financing.(c) balancing.(d) transitory.。
国际经济学第九版英文课后答案第10单元
国际经济学第九版英文课后答案第10单元CHAPTER 10ECONOMIC INTEGRATION: CUSTOMS UNIONS AND FREE TRADE AREAS OUTLINE10.1 Introduction10.2 Trade-Creating Customs Unions10.2a Trade Creation10.2b Illustration of a Trade-Creating Customs Union10.3 Trade-Diverting Customs Unions10.3a Trade Diversion10.3b Illustration of a Trade-Diverting Customs Union10.4 The Theory of the Second Best and Other Static Welfare Effects10.4a The Theory of the Second Best10.4b Conditions More Likely to Lead to Increased Welfare10.4c Other Static Welfare Effects of Customs Unions10.5 Dynamic Benefits of Customs Unions*10.6 History of Attempts at Economic Integration10.6a The European UnionCase Study 10-1: Economic Profile of the EU, NAFTA, and JapanCase Study 10-2: Gains from the Single EU Market10.6b The European Free Trade Association10.6c The North American and Other Free Trade AgreementsCase Study 10-3: Mexico's Gains from NAFTA – Expectations and Outcome10.6d Attempts at Economic Integration Among Developing NationsCase Study 10-4: Economic Profile of MercosurCase Study 10-5: Changes in Trade Patterns with Economic Integration 344A10.6e Economic Integration in Central, Eastern Europe & Former Soviet RepublicsCase Study 10-6: Per Capita Income of Transition Economies Appendix: A10.1 General Equilibrium Analysis of Static Effects of a Trade-Diverting Customs UnionA10.2 Regional Trade Agreements Around the WorldKey TermsEconomic integration Variable import leviesPreferential trade arrangements European Free Trade Association (EFTA) (6920811.d oc) 10-1 Dominick Salvatore Free-trade area Trade deflectionCustoms union North American Free Trade Agreement (NAFTA) Common market Southern Common Market (Mercosur) Economic union Council of Mutual Economic Assistance (CMEA) Duty-free zones State trading companiesTrade creation Bilateral agreementsTrade diversion Bulk purchasingTrade-diverting customs union Central and Eastern European Countries (CEEC) Theory of the second best New Independent States (NIS)Tariff factories Commonwealth of Independent States (CIS) European Union (EU) Central European Free Trade Association (CEFTA)Baltic States Free Trade Area (BAFTA)Lecture Guide:1. This is not a core chapter and I would skip it except for section 6. Section 6 is animportant section and can be regarded as an extension ofChapter 9, which is a corechapter. Section 6 deals with a very important set of current events.2. Section 6 is a long section and may require two classes to be adequately presented. Iwould cover subsections a-d in one class and subsection e as well as both case studies in the second class. Case Studies 10-1 to 10-6 can be used for a very stimulating classdiscussion.3. While section 6 can be presented without covering the material in sections 1-5, someterms discussed in sections 1-5 (such as trade creation and trade diversion) need to bedefined.4. In a one-year course in international economics, I would cover the entire chapter. I wouldthen cover sections 10-1 to 10-3 in one class and sections 10-4 and 10-5 in the secondclass. In the first class, the most important aspect would be the presentation and clearexplanation of Figures 10-1 and 10-2.Answers to Problems:1. If Nation A imposes a 100 percent ad valorem tariff on imports of commodity X fromNation B and Nation C, Nation A will produce commodity X domestically because thedomestic price of commodity X is $10 as compared with the tariff-inclusive price of$16 if Nation A imported commodity X from Nation B and $12 if Nation A importedcommodity X from nation C.2. a) If Nation A forms a customs union with Nation B, NationA will import commodity (6920811.d oc) 10-2 Dominick SalvatoreX from Nation B at the price of $8 instead of producing it itself at $10 or importing itfrom Nation C at the tariff-inclusive price of $12.b) When Nation A forms a customs union with Nation B this would be a trade-creatingcustoms union because it replaces domestic production of commodity X at Px=$10with tariff-free imports of commodity X from Nation B at Px=$8.3. If Nation A imposes a 50 percent ad valorem tariff on imports of commodity X fromNation B and Nation C, Nation A will import commodity X from nation C at the tariff- inclusive price of $9 instead of producing commodity X itself or importing it fromNation B at the tariff-inclusive price of $12.4. a) If Nation A forms a customs union with Nation B, NationA will import commodityX from Nation B at the price of $8 instead of importing it from Nation C at the tariff-inclusive price of $9.b) When Nation A forms a customs union with Nation B this would be a trade-divertingcustoms union because it replaces lower-price imports of commodity X of $6 (fromthe point of view of Nation A as a whole) with higher priced imports of commodityX from Nation B at $8.Specifically, Nation A's importers do not import commodity X from Nation Cbecause the tariff-inclusive price of commodity X from Nation C is $9 as comparedwith the no-tariff price of $8 for imports of commodity X from Nation B. However,since the government of Nation A collects the $3 tariff per unit on imports ofcommodity X from Nation C, the net effective price for imports of commodity Xfrom Nation C is really $6 for Nation A as a whole.5. See Figure 10-1 in the text. Any figure similar to Figure 10-1 in the text would do.6. The welfare gains that Nation 2 receives from joining Nation 1 to form a customs unionis given by the sum of the areas of triangles CJM and BHN in Figure 10-1 in the text.Any similar figure and sum of corresponding triangles would, of course, be adequate.7. See Figure 10-2 in the text. Any figure similar to Figure 10-2 in the text would do.8. The welfare loss that Nation 2 receives from joining Nation 1 to form a customs unionis given by C'JJ'+B'HH'- MNH'J'=$11.25 in Figure 10-2 in the text.Any similar figure and sum of corresponding triangles minus the area of corresponding rectangle would, of course, be adequate.9. See Figure 1 and compare it to Figure 10-2.10. The net gain from the trade-diverting customs unionshown in Figure 1 is given byC'JJ'+B'HH'-MJ'H'N. As contrasted with the case in Figure 10-2, however, the sum (6920811.d oc) 10-3 Dominick Salvatore of the areas of the two triangles (measuring gains) is greater than the area the rectangle (measuring the loss). Thus, the nation would now gain from the formation of a custom union. Had we drawn the figure on graph paper, we would have been able to measure the net gain in monetary terms also.11. A trade-diverting customs union is more likely to lead toa welfare gain of a membernation (1) the smaller is the relative inefficiency of nation 3 with respect to nation 1,(2) the higher is the level of the tariff, and (3) the more elastic are Dx and Sx in nation2. These can seen by comparing Figure 10-2 in the text with Figure 1 on the next page.12. See Figure 2. The formation of the customs union has no effect.13. NAFTA created much more controversy because the very low wages in Mexico led togreat fears of large job losses in the U. S.14. The possible cost to the U.S. from EU92 arose from the increased efficiency andcompetitiveness of the E.U. The benefit arose because a more rapid growth in the EU spills into a greater demand for American products, which benefits the U. S.App. Compare points B' and H' in Figure 10-3 with the corresponding points inFigure 3.Multiple-choice Questions:1. Which of the following statements is correct?*a. In a customs union, member nations apply a uniform external tariffb. in a free-trade area, member nations harmonize their monetary and fiscal policiesc. within a customs union there is unrestricted factor movementd. a customs union is a higher form of economic integration than a common market2. A customs union that allows for the free movement of labor and capital among its member nations is called a:a. preferential trade arrangementb. free-trade area*c. common marketd. all of the above3. A trade-creating customs union is one where:a. lower-cost imports from outside the customs union are replaced by higher-cost imports from a union member *b. some domestic production in a member nation is replaced by lower-cost imports from another member nationc. trade among members increases but trade with nonmembers decreasesd. trade among members decreases while trade with nonmembers increases4. A trade-diverting customs union:a. increases trade among union members and with nonmember nationsb. reduces trade among union members and with nonmember nations*c. increases trade among members but reduces trade with non-membersd. reduces trade among union members but increases it with nonmembers5. A trade-diverting customs union results in:a. trade diversion onlyb. trade creation only*c. both trade creation and trade diversiond. we cannot say6. The formation of a trade-creating customs union where all economic resources of membernations are fully employed before and after the formation of the customs union leads to an:*a. increase in the welfare of member and nonmember nationsb. increase in the welfare of member nations onlyc. increase in the welfare of nonmember nations onlyd. increase or decrease in the welfare of member and nonmember nations7. A trade-diverting customs union:a. increases the welfare of member and nonmember nationsb. reduces the welfare of member and nonmember nationsc. increases the welfare of member nations but reduces that of nonmembers*d. reduces the welfare of nonmembers and may increase or reduce that of members8. A trade-diverting customs union is more likely to lead to trade creation:a. the lower are the pre-union trade barriers of the member countries*b. the lower are the customs union's barriers on trade with the rest of the worldc. the smaller is the number of countries forming the customs union and the smaller their sized. the more complementary rather than competitive are the economies of the nations forming the customs union9. The theory of customs union is a special case of the theory of:a. effective protection*b. the second bestc. the product cycled. comparative advantage10. Which is not a dynamic benefit from the formation of a customs union?a. increased competitionb. economies of scalec. stimulus to investment*d. trade creation11. The formation of the EU resulted in:a. trade creation in industrial and agricultural productsb. trade diversion in industrial and agricultural products*c. trade creation in industrial products and trade diversion in agricultural productsd. trade diversion in industrial products and trade creation in agricultural products12. The benefit that the United States is likely to receive from NAFTA:*a. increasing competition in product and resource marketsb. greater technical innovationc. improvements in its terms of traded. all of the above13. The benefit that Mexico is likely to receive from NAFTA:a. greater export-led growthb. encouraging the return of flight capitalc. more rapid structural change*d. all of the above14. Which is a stumbling block to successful economic integration among groups ofdeveloping nations?a. benefits are not evenly distributed among nationsb. many developing nations are not willing to relinquish part of their newly-acquired sovereignty to a supranational community body, as required for successful economic integrationc. the complementary nature of their economies and competition for the same world markets for their agricultural exports*d. all of the above15. The formation of a free trade area among the countries of Eastern Europe is advocatedin order to:a. restore trade trading*b. retain the traditional trade links that can be justified on market principlesc. reduce the need for structural changed. none of the above。
ch04 国际经济学课后答案与习题(萨尔瓦多)
*CHAPTER 4(Core Chapter)THE HECKSCHER-OHLIN AND OTHER TRADE THEORIESOUTLINE4.1 Introduction4.2 Factor Endowments and the Heckscher-Ohlin Theory4.3 The Formal Heckscher-Ohlin ModelCase Study 4-1 The Revealed Comparative Advantage of Various Countries and Regions4.4 Factor-Price Equalization and Income DistributionCase Study 4-2 Has International Trade Increased U.S. Wage Inequalities?4.5 Empirical Tests of the Heckscher-Ohlin Theory4.6 Economies of Scale and International TradeCase Study 4-3 The New International Economies of Scale4.7 Trade Based on Product DifferentiationCase Study 4-4 Growth of Intra-Industry Trade4.8 Technological Gap and Product Cycle ModelsCase Study 4-5: The United States as the Most Competitive Economy in the World4.9 Transportation Costs and International Trade4.10 Environmental Standards and International TradeAppendix The Specific-Factors Model and Intra-Industry Trade ModelsA4.1 The Specific-Factors ModelA4.2 A Model of Intra-Industry TradeKey TermsInternationalofscaleeconomies pricesRelativefactorproducts Heckscher–Ohlin (H–O) theory DifferentiatedtradeIntra-industryHeckscher–Ohlintheorem(H–O)Factor-proportions or factor-endowment theory Technological gap modelcyclemodelProductFactor–price equalization theoremcostsTransportationStolper-Samuelsontheoremmodel Nontraded goods and services Specific-factorsparadox Environmental standardsLeontiefMonopolisticcompetitionscalereturnsIncreasingtoLecture Guide1. This is one of the most important and difficult chapters in the book. It is also a long chapter andrequires four lectures to cover adequately.2. In the first lecture, I would cover sections 1-3. Section 3 is one of the most important sections inthe book because it presents the H-O model. I would proceed slowly and carefully in explaining Figure 4.1 and compare it to the standard trade model of Figure 3.4.3. In the second lecture, I would cover sections 4 and 5. Section 4 on the factor-price equalizationtheorem and income distribution is a difficult section. Case Study 4-2 should be of great interest to the students and give rise to a great deal of class discussion.4. In third lecture, I would cover sections sections 6-7, paying a great deal of attention to section 7on trade in differentiated products.5. In fourth lecture, I would cover the rest of the chapter.Answers to Review Questions and Problems1. a. The Heckscher–Ohlin (H-0) theorem postulates that a nation will export those commodi- ties whose production requires the intensive use of the nation’s relatively abundant and cheap factor and import the commodities whose production requires the intensive useof the nation’s relatively scarce and expensive factor. In short, the relatively labor-richnation exports relatively labor-intensive commodities and imports the relativelycapital-intensive commodities.b. Heckscher and Ohlin identify the relative difference in factor endowments amongnations as the basic determinant of comparative advantage and international trade.c. The H-O Theory represent an extension of the standard trade model because it explains the basis for comparative advantage (classical economists, such as Ricardo had assumed it) and examines the effect of international trade on factor prices and income distribution (which classical economists had left unanswered).2. See Figure 1 on the next page.3. a. The factor–price equalization theorem postulates that international trade will bring about the equalization of the returns to homogeneous or identical factors across nations.b. The Stopler-Samuelson theorem postulates that free international trade reduces the realincome of the nation’s relatively scarce factor and increases the real income of the nation’s relatively abundant factor.Fig 4.1Fig 4.2XXb. The specific-factors model postulates that the opening of trade (1) benefits the specific factorused in the production of the nation’s export commodity, (2) harms the specific factor used in the production of the nation’s import-competing industry, and (3) leads to an ambiguouseffect (i.e., it may benefit or harm) the mobile factor.c. Trade acts as a substitute for the international mobility of factors of production in itseffect on factor prices. With perfect mobility, labor would migrate from the low-wagenation to the high-wage nation until wages in the two nations are equalized. Similarly,capital would move from the low-interest to the high-interest nation until the rate ofinterest was equalized in the two nations.4. a. The Leontief paradox refers to the original Leontief’s finding that U.S. import substituteswere more K-intensive than U.S. exports. This was the opposite of what the H-O theorempostulated.b. The Leontief paradox was resolved by including human capital into the calculations andexcluding industries based on natural resources. Recent research using data on many sectors, for many countries, over many years, and considering that countries could specialize in aparticular subset or group of commodities that were best suited to their specific factorendowments, provides strong support for the H-O theorem.c. The Hecksher-Olhin theory remains the centerpiece of modern trade theory for explaininginternational trade today. To be sure, there are other forces (such as economies of scale,product differentiation, and technological differences across countries) that provide additional reasons and explanations for some international trade not explained by the basic H-O model.These other trade theories complement the basic H-O model in explaining the pattern ofinternational trade in the world today.5. International trade with developing economies, especially newly industrializing economies (NIEs), contributed in two ways to increased wage inequalities between skilled and unskilled workers in the United States during the past two decades. Directly, by reducing the demand for unskilledworkers as a result of increased U.S. imports of labor-intensive manufactures and, indirectly, byspeeding up the introduction of labor-saving innovations, which further reduced the U.S.demand for unskilled workers. International trade, however, was only a small cause of increased wage inequalities in the United States. The most important cause was technological change.6. a. Economies of scale refer to the production situation where output grows proportionatelymore than the increase in inputs or factors of production. For example, output may morethan double with a doubling of inputs.b. Even if two nations were identical in every respect, there is still a basis for mutually bene-ficial trade based on economies of scale. When each nation specializes in the production of one commodity, the combined total world output of both commodities will be greater thanthan without specialization when economies of scale are present. With trade, each nationthen shares in these gains.c. The new international economies of scale refers to the increase in productivity resultingfrom firms purchasing parts and components from nations where they are made cheaperand better, and by establishing production facilities abroad-26-7. a. Product differentiation refers to products that are similar, but not identical. Intra-industrytrade refers to trade in differentiated products, as opposed to inter-industry trade incompletely different products.b. Intra-industry trade arises in order to take advantage of important economies of scale inproduction. That is, with intra-industry trade each firm or plant in industrial countries canspecialize in the production of only one, or at most a few, varieties and styles of the sameproduct rather than many different varieties and styles of a product and achieve economies of scale.c. With few varieties and styles, more specialized and faster machinery can be developedfor a continuous operation and a longer production run. The nation then imports othervarieties and styles from other nations. Intra-industry trade benefits consumers because ofthe wider range of choices (i.e., the greater variety of differentiated products) available atthe lower prices made possible by economies of scale in production.8. a. According to the technological gap model, a firm exports a new product until imitators incountries take away its market. In the meantime, the innovating firm will have introduced a new product or process.b. The criticism of the technological gap model are that it does not explain the size of techno- logical gaps and does not explore the reason for technological gaps arising in the first place, or exactly how they are eliminated over time.c. The five stages of the product cycle model are: the introduction of the product, expansion of production for export, standardization and beginning of production abroad through imitation, foreign imitators underselling the nation in third markets, and foreigners underselling theinnovating firms in their home market as well.9. See Figure 2 on page 25.10. A nation with lower environmental standards can use the environment as a resource endow-ment or as a factor of production in attracting polluting firms from abroad and achieving acomparative advantage in the production of polluting goods and services. This can lead totrade disputes with nations with more stringent environmental standards.-27-Multiple-Choice Questions1. The H-O model extends the classical trade model by:a. explaining the basis for comparative advantageb. examining the effect of trade on factor prices*c. both a and bd. neither a nor b2. A nation is said to have a relative abundance of K if it has a:a. greater absolute amount of Kb. smaller absolute amount of Lc. higher L/K ratio*d. lower price of K in relation to the price of L3. A difference in relative commodity prices between nations can be based on a difference in:a. technologyb. factor endowmentsc. tastes*d. all of the above4. In the H-O model, international trade is based mostly on a difference in:a. technology*b. factor endowmentsc. economies of scaled. tastes5. According to the H-O theory, trade reduces international differences in:a. commodity pricesb. in factor prices*c. both commodity and factor pricesd. neither relative nor absolute factor prices6. According to the Stolper-Samuelson theorem, international trade leads toa. reduction in the real income of the nation’s relatively abundant factor*b. reduction in the real income of the nation’s relatively scarce factorc. increase in the real income of the nation’s relatively scarce factord. none of the above7. Which of the following is false with regard to the specific factors theorem, international trade *a. harms the immobile factors that are specific to the nation’s export commodities or sectorsb. harms the immobile factors that are specific to the nation’s import-competing commoditiesc. has an ambiguous effect on the nation’s mobile factorsd. may benefit or harm the nation’s mobile factors8. Perfect international mobility of factors of productiona. leads to a reduction in international differences in the returns to homogenous factorsb. acts as a substitute for international trade in its effects on factor pricesc. operates on the supply of factors in affecting factor prices*d. all of the above9. The Leontief paradox refers to the empirical finding that U.S.*a. import substitutes were more K-intensive than exportsb. exports were more L-intensive than importsc. exports were more K-intensive than import substitutesd. all of the above10. From empirical studies, we conclude that the H-O theory:a. must be rejectedb. must be accepted without reservations*c. can generally be acceptedd. explains all international trade11. International trade can be based on economies of scale even if both nations have identical:a. factor endowmentsb. tastesc. technology*d. all of the above12. A great deal of international trade:a. is intra-industry tradeb. involves differentiated productsc. is based on monopolistic competition*d. all of the above13. Intra-industry trade takes place:a. because products are homogeneous*b. in order to take advantage of economies of scalec. because perfect competition is the prevalent form of market organizationd. all of the above14. Which of the following statements is true with regard to the product-cycle theory?a. it depends on differences in technological changes over time among countriesb. it depends on the opening and the closing of technological gaps among countriesc. it postulates that industrial countries export more advanced products to lessadvanced countries*d. all of the above15. Transport costs:a. increase the price in the importing countryb. reduces the price in the exporting countryc. falls less heavily on the nation with the more elastic demand and supply curves of the traded commodity*d. all of the above-30-ADDITIONAL ESSAYS AND PROBLEMS FOR PART ONE1. Assume that both the United States and Germany produce beef and computer chips with the following costs:United States Germany(dollars) (marks)Unit cost of beef (B) 2 8Unit cost of computer chips (C) 1 2(a) What is the opportunity cost of beef (B) and computer chips (C) in each country?(b) In which commodity does the United States have a comparative cost advantage?What about Germany?(c) What is the range for mutually beneficial trade between the United States and Germanyfor each computer chip traded?(b) How much would the United States and Germany gain if 1 unit of beef is exchangedfor 3 chips?Answ. (a) In the United States:the opportunity cost of one unit of beef is 2 chips;the opportunity cost of one chip is 1/2 unit of beef.In Germany:the opportunity cost of one unit of beef is 4 chips;the opportunity cost of one chip is 1/4 unit of beef.(b) The United States has a comparative cost advantage in beef with respect to Germany,while Germany has a comparative cost advantage in computer chips.(c) The range for mutually beneficial trade between the United States and Germany foreach unit of beef that the United States exports is2C < 1B < 4C(d) Both the United States and Germany would gain 1 chip for each unit of beef traded.2. Given: (1) two nations (1 and 2) which have the same technology but different factor costs conditions, and (3) no transportation costs, tariffs, or other obstructions to trade.Prove geometrically that mutually advantageous trade between the two nations is possible.Note: Your answer should show the autarky (no-trade) and free-trade points of production and consumption for each nation, the gains from trade of each nation, and express the equilibrium condition that should prevail when trade stops expanding.)Ans.: See the figure below.Fig 4.3Fig 4.4Nations 1 and 2 have different production possibilities curves and different community indifference maps. With these, they will usually end up with different relative commodity prices in autarky, thus making mutually beneficial trade possible.In the figure, Nation 1 produces and consumes at point A and Px/Py=P A in autarky, while Nation 2 produces and consumes at point A' and Px/Py=P A'. Since P A < P A', Nation 1 has a comparative advantage in X and Nation 2 in Y. Specialization in production proceeds until point B in Nation 1 and point B' in Nation 2, at which P B =P B' and the quantity supplied for export of each commodity exactly equals the quantity demanded for import.Thus, Nation 1 starts at point A in production and consumption in autarky, moves to point B in production, and by exchanging BC of X for CE of Y reaches point E in consumption. E > A since it involves more of both X and Y and lies on a higher community indifference curve.Nation 2 starts at A' in production and consumption in autarky, moves to point B' in production, and by exchanging B'C' of Y for C'E' of X reaches point E'in consumption (which exceeds A').At Px/Py=P B =P B', Nation 1 wants to export BC of X for CE of Y, while Nation 2 wants to export B'C' (=CE) of Y for C'E' (=BC) of X. Thus, P B =P B' is the equilibrium relative commodity price because it clears both (the X and Y) markets.3. (a) Identify the conditions that may give rise to trade between two nations. (b) What aresome of the assumptions on which the Heckscher-Ohlin theory is based? (c) What does this theory say about the pattern of trade and effect of trade on factor prices?Ans. (a) Trade can be based on a difference in factor endowments, technology, or tastesbetween two nations. A difference either in factor endowments or technology results in a different production possibilities frontier for each nation, which, unlessneutralized by a difference in tastes, leads to a difference in relative commodity price and mutually beneficial trade. If two nations face increasing costs and have identical production possibilities frontiers but different tastes, there will also be a differencein relative commodity prices and the basis for mutually beneficial trade between the two nations. The difference in relative commodity prices is then translated into adifference in absolute commodity prices between the two nations, which is the immediate cause of trade.(b) The Heckscher-Ohlin theory (sometimes referred to as the modern theory – asopposed to the classical theory - of international trade) assumes that nations have the same tastes, use the same technology, face constant returns to scale (i.e., a givenpercentage increase in all inputs increases output by the same percentage) but differ widely in factor endowments. It also says that in the face of identical tastes or demand conditions, this difference in factor endowments will result in a difference in relative factor prices between nations, which in turn leads to a difference in relativecommodity prices and trade. Thus, in the Heckscher-Ohlin theory, the internationaldifference in supply conditions alone determines the pattern of trade. To be noted is that the two nations need not be identical in other respects in order for internationaltrade to be based primarily on the difference in their factor endowments.(c) The Heckscher-Ohlin theorem postulates that each nation will export the commodityintensive in its relatively abundant and cheap factor and import the commodityintensive in its relatively scarce and expensive factor. As an important corollary, itadds that under highly restrictive assumptions, trade will completely eliminate thepretrade relative and absolute differences in the price of homogeneous factors amongnations. Under less restrictive and more usual conditions, however, trade will reduce, but not eliminate, the pretrade differences in relative and absolute factor prices among nations. In any event, the Heckscher-Ohlin theory does say something very useful onhow trade affects factor prices and the distribution of income in each nation. Classical economists were practically silent on this point.-33-4. Suppose that tastes change in Nation 1 (the L-abundant and L-cheap nation) so that consumers demand more of commodity X (the L-intensive commodity) and less of commodity Y (the K- intensive commodity). Suppose that Nation 1 is India, commodity X is textiles, and commodi- ty Y is food. Starting from the no-trade equilibrium position and using the Heckscher-Ohlinmodel, trace the effect of this change in tastes on India's (a) relative commodity prices anddemand for food and textiles, (b) production of both commodities and factor prices, and(c) comparative advantage and volume of trade. (d) Do you expect international trade to leadto the complete equalization of relative commodity and factor prices between India and theUnited States? Why?Ans. (a) The change in tastes can be visualized by a shift toward the textile axis in India'sindifference map in such a way that an indifference curve is tangent to the steepersegment of India's production frontier (because of increasing opportunity costs) after the increase in demand for textiles. This will cause the pretrade relative commodity price of textiles to rise in India.(b) The increase in the relative price of textiles will lead domestic producers in India toshift labor and capital from the production of food to the production of textiles. Since textiles are L-intensive in relation to food, the demand for labor and therefore the wage rate will rise in India. At the same time, as the demand for food falls, thedemand for and thus the price of capital will fall. With labor becoming relative more expensive, producers in India will substitute capital for labor in the production of both textiles and food.(c) Even with the rise in relative wages and in the relative price of textiles, India stillremains the L-abundant and low-wage nation with respect to a nation such as theUnited States. However, the pretrade difference in the relative price of textilesbetween India and the United States is now somewhat smaller than before the change in tastes in India. As a result the volume of trade required to equalize relativecommodity prices and hence factor prices is smaller than before. That is, India need now export a smaller quantity of textiles and import less food than before for therelative price of textiles in India and the United States to be equalized. Similarly, the gap between real wages and between India and the United States is now smaller and can be more quickly and easily closed (i.e., with a smaller volume of trade).(d) Since many of the assumptions required for the complete equalization of relativecommodity and factor prices do not hold in the real world, great differences can be expected and do in fact remain between real wages in India and the United States.Nevertheless, trade would tend to reduce these differences, and the H-O model does identify the forces that must be considered to analyze the effect of trade on thedifferences in the relative and absolute commodity and factor prices between Indiaand the United States.-34-5. (a) Explain why the Heckscher-Ohlin trade model needs to be extended. (b) Indicate in what important ways the Heckscher-Ohlin trade model can be extended. (c) Explain what ismeant by differentiated products and intra-industry trade.Ans. (a) The Heckscher-Ohlin trade model needs to be extended because, while generallycorrect, it fails to explain a significant portion of international trade, particularly the trade in manufactured products among industrial nations.(b) The international trade left unexplained by the basic Heckscher-Ohlin trade model canbe explained by (1) economies of scale, (2) intra-industry trade, and (3) trade based on imitation gaps and product differentiation.(c) Differentiated products refer to similar, but not identical, products (such as cars,typewriters, cigarettes, soaps, and so on) produced by the same industry or broadproduct group. Intra-industry trade refers to the international trade in differentiated products.-35-。
ch07 国际经济学课后答案与习题(萨尔瓦多)
*CHAPTER 7(Core Chapter)INTEGRATIONECONOMICOUTLINE7.1 Introduction7.1 Forms of Economic Integration7.2 Trade Creation and Trade Diversion in Customs Unions7.3 Dynamic Benefits from Customs Unions7.4 The European UnionCase Study 7-1 Economic Profile of EU, NAFTA, and JapanCase Study 7-2 Gains from the Single EU Market in 19927.5 The European Free Trade Association7.6 The North-American Free Trade Agreement (NAFTA)7.7 Attempts at Economic Integration Among Developing CountriesCase 7-3 Economic Profile of MercosurCase 7-4 Changes in Trade Pattern with Economic Integration7.9 Economic Integration in Central and Eastern Europe and in the former Soviet RepublicsCase Study 7-5 Per Capita Income in Transition EconomiesKey TermsdeflectionTradeEconomicintegrationPreferential trade arrangements European Economic Area (EEA)Free trade area North American Free Trade Agreement (NAFTA)MarketCommon(Mercosur)SouthernCustomsunionmarket Council of Mutual Economic Assistance (CMEA) or (COMECON) Commoncompaniestradingunion StateEconomicDuty-free zones or free economic zones Centrally planned economiesagreementsBilateralTradecreationBulkpurchasingdiversionTradeandEastern European Countries (CEEC) factoriesCentralTariffNewly Independent States (NIS)(EU)EuropeanUnionVariable import levies Commonwealth of Independent States (CIS)European Free Trade Association (EFTA) Central European Free Trade Association (CEFTA)(BFTA)AreaBalticTradeFree-53-Lecture Guide:1. This is not a core chapter and I would skip it, except for sections 7-4 to 7-8 dealing with theEuropean Union (EU), The European Free Trade Association, the North American FreeTrade Agreement (NAFTA), and the Southern Common Market (Mercosur).2. I would take two classes to cover the material. Case Studies 7-1 to 7-4 can be used for a very stimulating class discussion.Answers to Problems:1. If Nation A imposes a 100 percent ad valorem tariff on imports of commodity X fromNation B and Nation C, Nation A will produce commodity X domestically because thedomestic price of commodity X is $10 as compared with the tariff-inclusive price of$16 if Nation A imported commodity X from Nation B and $12 if Nation A importedcommodity X from nation C.2. a. If Nation A forms a customs union with Nation B, Nation A will import commodityX from Nation B at the price of $8 instead of producing it itself at $10 or importing itfrom Nation C at the tariff-inclusive price of $12.b. The formation by Nation A of a customs union with Nation B leads to trade creationonly because Nation A replaces the domestic production of commodity X at Px=$10with tariff-free imports of commodity X from Nation B at Px=$8.3. If Nation A imposes a 50 percent ad valorem tariff on imports of commodity X fromNation B and Nation C, Nation A will import commodity X from nation C at the tariff-inclusive price of $9 instead of producing commodity X itself or importing it fromNation B at the tariff-inclusive price of $12.4. a. If Nation A forms a customs union with Nation B, Nation A will import commodityX from Nation B at the price of $8 instead of importing it from Nation C at the tariff- inclusive price of $9.b. The formation by Nation A of a customs union with Nation B leads not only to tradecreation but also to trade diversion because it replaces lower-cost imports of commodity X of $6 (from the point of view of Nation A as a whole) with higher priced imports of Commodity X from Nation B at $8.Specifically, Nation A's importers do not import commodity X from Nation C becausethe tariff-inclusive price of commodity X from Nation C is $9 as compared with theno-tariff price of $8 for imports of commodity X from Nation B. However, since thegovernment of Nation A collects the $3 tariff per unit on imports of commodity Xfrom Nation C, the net effective price for imports of commodity X from Nation C isreally $6 for Nation A as a whole.-54-5. a. See Figure 1 below.b. The net gain from the trade-diverting customs union shown in Figure 1 is given byC'JJ'+B'HH'-MJ'H'N. As contrasted with the case in Figure 7-1 in the text, however,the sum of the areas of the two triangles (measuring gains) is here greater than the area the rectangle (measuring the loss). Thus, the nation would now gain from the formation of a custom union. Had we drawn the figure on graph paper, we would have been able to measure the net gain in monetary terms also.6. A customs union that leads to both trade creation and trade diversion is more likely to lead to a net positive welfare gain of the nation joining the union (1) the smaller is the relative inefficiency of the union member in relation to the non-union member and (2) the higher is the level of the tariff imposed by the customs union on the non-union member.7. The dynamic benefits resulting from the formation of a customs union are (1) increasedcompetition, (2) economies of scale, (3) stimulus to investment, and (4) better utilizationof economic resources. These are likely to be much more significant than the static benefits.8. See Figure 2 below. The formation of the customs union has no effect.9. NAFTA created much more controversy because the very low wages in Mexico led togreat fears of large job losses in the U. S.10. The possible cost to the U.S. from EU92 arose from the increased efficiency andcompetitiveness of the E.U. The benefit arose because a more rapid growth in the EUspills into a greater demand for American products, which benefits the U. S.Fig 7.1xPFig 7.2xP-55-Multiple-choice Questions:1. Which of the following statements is correct?*a. in a customs union, member nations apply a uniform external tariffb. in a free-trade area, member nations harmonize their monetary and fiscal policiesc. within a customs union there is unrestricted factor movementd. a customs union is a higher form of economic integration than a common market2. A customs union that allows for the free movement of labor and capital among itsmember nations is called a:a. preferential trade arrangementb. free-trade area*c. common marketd. all of the above3. A customs union creates trade when:a. lower-cost imports from outside the customs union are replaced by higher-costimports from a union member*b. some domestic production in a member nation is replaced by lower-cost imports from another member nationc. trade among members increases but trade with nonmembers decreasesd. trade among members decreases while trade with nonmembers increases4. Trade diversion arises in a customs union if it:a. increases trade among union members and with nonmember nationsb. reduces trade among union members and with nonmember nations*c. increases trade among members but reduces trade with non-membersd. reduces trade among union members but increases it with nonmembers5. Customs union usually results in:a. trade diversion onlyb. trade creation only*c. both trade creation and trade diversiond. we cannot say-56-6. The formation of a customs union that leads only to trade creation and all economic resources of member nations are fully employed before and after the formation of the customs union leads to an:*a. increase in the welfare of member and nonmember nationsb. increase in the welfare of member nations onlyc. increase in the welfare of nonmember nations onlyd. increase or decrease in the welfare of member and nonmember nations7. A customs union that leads to both trade creation and trade diversion:a. increases the welfare of member and nonmember nationsb. reduces the welfare of member and nonmember nationsc. increases the welfare of member nations but reduces that of nonmembers*d. reduces the welfare of nonmembers and may increase or reduce that of members8. A customs union is more likely to lead to trade creation:a. the lower are the pre-union trade barriers of the member countries*b. the lower are the customs union's barriers on trade with the rest of the worldc. the smaller is the number of countries forming the customs union and the smallertheir sized. the more complementary rather than competitive are the economies of the nationsforming the customs union9. Which is not a dynamic benefit from the formation of a customs union?a. increased competitionb. economies of scalec. stimulus to investment*d. trade creation10. The formation of the EU resulted in:a. trade creation in industrial and agricultural productsb. trade diversion in industrial and agricultural products*c. trade creation in industrial products and trade diversion in agricultural productsd. trade diversion in industrial products and trade creation in agricultural products11. The benefit that the United States receives from NAFTA:*a. increasing competition in product and resource marketsb. greater technical innovationc. improvements in its terms of traded. all of the above-57-12. The benefit that Mexico is likely to receive from NAFTA:a. greater export-led growthb. encouraging the return of flight capitalc. more rapid structural change*d. all of the above13. Which is a stumbling block to successful economic integration among groups ofdeveloping nations?a. benefits are not evenly distributed among nationsb. many developing nations are not willing to relinquish part of their newly-acquiredsovereignty to a supranational community body, as required for successful economicintegrationc. the complementary nature of their economies and competition for the same worldmarkets for their agricultural exports*d. all of the above14. The formation of a free trade area among the countries of Eastern Europe is advocatedin order to:a. restore trade trading*b. retain the traditional trade links that can be justified on market principlesc. reduce the need for structural changed. none of the above15. The Members of Mercosur are:a. Brazil, Mexico, Argentina, and venezuelab. Argentina, Brazil, the United States and Peru*c. Brazil, Argentina, Paraguay, and Uruguayd. Brazil, Chile, Peru and Canada-58-。