习题三
1. Important Concepts
Factor proportions (or endowment) theory
Direct foreign investment
Product cycle
Interindustry trade
Intraindustry trade
Capital-intensive products
Capital-abundant country
Monopolistic competition
Factor price equalization
Leontief scarce-factor paradox
Sector-specific model
Labor-intensive products
Labor-abundant country
Product variety
Dynamic changes in comparative advantage
Export-biased growth
Import-biased growth
2. Choices
(1) The factor proportions (or endowment) theory was
refined after World War Ⅱ by
.
a. E.F. Heckscher
b. Paul Samuelson
c. B.Ohlin
d.
David Hume
(2) We usually call it _________that possesses larger
endowment ratio of labor to capital than the endowment of
another country.
a. a labor-abundant country
b. a capital-abundant
country
c. a money-abundant country
d.a people-abundant
country
(3) An exchange between countries of totally different
products means__________
a. intraindustry trade
c. commodity trade
b. industry trade
d. inerindustry trade
(4) The rationalization of countries' intraindustry trade will
take advantages of__________
a. economies of scale
b. greater competitionamong large firms
c. reallocation of resources
d. larger product variety available to consumers
3. Review Questions
(1) Does the factor proportions theory provide a good
explanation of intraindustry trade? If not, can you outline an
alternative explanation for this growing phenomenon?
(2) Distinguish between interindustry and intraindustry
trade,
providing
examples
of
each.
Offer
possible
explanations for interindustry and intraindustry trade.
(3) The U.S. labor movement—which mostly represents
blue-collar workers rather than professionals and highly
educated workers—has traditionally favored limits on
imports from less-affluent countries. Is this a shortsighted
policy or a rational one in view of the interests of union
members? How does the answer depend on the model of
trade?
(4) In some economies relative supply may be unresponsive
to changes in prices. For example, if factors of production
were completely immobile between sectors, the production
possibility frontier would be right-angled, and output of the
two goods would not depend on their relative prices. Is it
still true in this case that a rise in the terms of trade
increases welfare? Analyze graphically.
(5) Countries A and B have two factors of production,
capital and labor, with which theyprod uce two goods, X
and Y. Technology is the same in the two countries. X is
capital intensive; A is capital abundant.Analyze the effects
on the terms of trade and the welfare of the two countries of
the following:
a. An increase in A's capital stock.
b. An increase in A's labor supply.
c. An increase in B's capital stock.
d. An increase in B's labor supply.
(6) The very small economy of Cantabrigia has a total labor
force of 20 workers. These workers can produce two goods,
manufactures and food. In production of manufactures,the
marginal product of labor depends on employment as
follows:
Number of workers
Marginal product of last worker
1
2
3
4
5
6
7
8
9
10
20
18
16
14
12
11
10
9
8
7
In the food sector the marginal product of labor is
independent of employment,and is 9. The world price of a
unit of manufactures is $10, so is the world price of a unit of
food.
a. Suppose there were no distortion in the labor market; find
the wage rate, the allocation of labor between manufactures
and food, and the output of each good.
b. Now suppose that for some reason the minimum wage in
the manufactures sector is $ 150. Full employment,
however, is maintained. Find the output of the economy in
this case. How large is the cost of the distortion?
c. Finally, suppose that workers migrate from the country to
the city until the wage of city workers multiplied by the
probability of being employed equals the rural wage. Find
the level of output and unemployment.
(7) What is meant by "Relative factor intensity of a
commodity"and"Relative
factor
abundance
of
a
country"?How are these concepts used to explain the
commodity composition of trade?Demonstrate that under
this analysis commodity movement and factor movement
are substitutes for each other. Was the Leontief paradox a
verification of that explanation?If not,what was it?
(8) Does the factor proportions theory shed any light on
Mexican migration to the United States?How does it
account for U.S. direct investment in Canada?
(9) Explain the dynamic nature of comparative advantage
using Japan's experience as an example.
(10) Once the United States acquires a comparative
advantage in jet aircraft production it can be sure of a
dominant position in the global market forever.Do you agree
with this statement?Explain.
(11) Explain and elaborate on the following statement:Under
the factor endowment model,the main gain from trade is
found in resource reallocation.Under the"monopolistic
competition, economies of scale"theory,there are other gains
as well.What are these other gains?
(12) Why is economic growth usually represented by a
nonsysmmetrical shift in the transformation curve?