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CHAPTER 1INTRODUCTIONChapter OrganizationWhat is International Economics About?The Gains from TradeThe Pattern of TradeProtectionismThe Balance of PaymentsExchange-Rate DeterminationInternational Policy CoordinationThe International Capital MarketInternational Economics: Trade and MoneyCHAPTER OVERVIEWThe intent of this chapter is to provide both an overview of the subject matter of international economics and to provide a guide to the organization of the text. It is relatively easy for an instructor to motivate the study of international trade and finance. The front pages of newspapers, the covers of magazines, and the lead reports of television news broadcasts herald the interdependence of the U.S. economy with the rest of the world. This interdependence may also be recognized by students through their purchases of imports of all sorts of goods, their personal observations of the effects of dislocations due to international competition, and their experience through travel abroad.The study of the theory of international economics generates an understanding of many key events that shape our domestic and international environment. In recent history, these events include the causes and consequences of the large current account deficits of the United States; the dramatic appreciation of the dollar during the first half of the 1980s followed by its rapid depreciation in the second half of the 1980s; the Latin American debt crisis of the 1980s and the Mexico crisis in late 1994; and the increased pressures for industry protection against foreign competition broadly voiced in the late 1980s and more vocally espoused in the first half of the 1990s. Most recently, the financial crisis that began in East Asia in 1997 andspread to many countries around the globe and the Economic and Monetary Union in Europe have highlighted the way in which various national economies are linked and how important it is for us to understand these connections. At the same time, protests at global economic meetings have highlighted opposition to globalization. The text material will enable students to understand the economic context in which such events occur.Chapter 1 of the text presents data demonstrating the growth in trade and increasing importance of international economics. This chapter also highlights and briefly discusses seven themes which arise throughout the book. These themes include: 1) the gains from trade;2) the pattern of trade; 3) protectionism; 4), the balance of payments; 5) exchange rate determination; 6) international policy coordination; and 7) the international capital market. Students will recognize that many of the central policy debates occurring today come under the rubric of one of these themes. Indeed, it is often a fruitful heuristic to use current events to illustrate the force of the key themes and arguments which are presented throughout the text.。
Chapter 1 Introduction1.1 What Is International Economics About?1) Historians of economic thought often describe ________ written by ________ and published in ________ asthe first real exposition of an economic model.A) "Of the Balance of Trade," David Hume, 1776B) "Wealth of Nations," David Hume, 1758C) "Wealth of Nations," Adam Smith, 1758D) "Wealth of Nations," Adam Smith, 1776E) "Of the Balance of Trade," David Hume, 1758Answer: EQuestion Status: Previous Edition2) From 1959 to 2004,A) the U.S. economy roughly tripled in size.B) U.S. imports roughly tripled in size.C) the share of US Trade in the economy roughly tripled in size.D) U.S. Imports roughly tripled as compared to U.S. exports.E) U.S. exports roughly tripled in size.Answer: CQuestion Status: Previous Edition3) The United States is less dependent on trade than most other countries becauseA) the United States is a relatively large country.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.Answer: AQuestion Status: Previous Edition4) Ancient theories of international economics from the 18th and 19th Centuries areA) not relevant to current policy analysis.B) are only of moderate relevance in today's modern international economy.C) are highly relevant in today's modern international economy.D) are the only theories that actually relevant to modern international economy.E) are not well understood by modern mathematically oriented theorists.Answer: CQuestion Status: Previous Edition5) An important insight of international trade theory is that when countries exchange goods and services onewith the other itA) is always beneficial to both countries.B) is usually beneficial to both countries.C) is typically beneficial only to the low wage trade partner country.D) is typically harmful to the technologically lagging country.E) tends to create unemployment in both countries.Answer: BQuestion Status: Previous EditionB) trade is likely to be harmful to the country with the high wages.C) trade is likely to be harmful to the country with the low wages.D) trade is likely to be harmful to neither country.E) trade is likely to have no effect on either country.Answer: DQuestion Status: Previous Edition7) Benefits of international trade are limited toA) tangible goods.B) intangible goods.C) all goods but not services.D) services.E) None of the above.Answer: EQuestion Status: Previous Edition8) Which of the following does not belong?A) NAFTAB) Uruguay RoundC) World Trade OrganizationD) None Tariff BarriersE) None of the above.Answer: DQuestion Status: Previous Edition9) International economics does not use the same fundamental methods of analysis as other branches ofeconomics, becauseA) the level of complexity of international issues is unique.B) the interactions associated with international economic relations is highly mathematical.C) international economics takes a different perspective on economic issues.D) international economic policy requires cooperation with other countries.E) None of the above.Answer: EQuestion Status: New10) 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 financialintermediary in New York State.D) the U.S. may not impose export duties.E) None of the aboveAnswer: EQuestion Status: NewB) the balance of paymentsC) exchange rate determinationD) Bilateral trade relations with ChinaE) None of the aboveAnswer: DQuestion Status: New12) "Trade is generally harmful if there are large disparities between countries in wages."A) This is generally true.B) This is generally false.C) Trade theory has nothing to say about this issue.D) This is true if the trade partner ignores child labor laws.E) This is true if the trade partner uses prison labor.Answer: BQuestion Status: New13) Who sells what to whomA) has been a major preoccupation of international economics.B) is not a valid concern of international economics.C) is not considered important for government foreign trade policy since such decisions are made in theprivate competitive market.D) is determined by political rather than economic factors.E) None of the aboveAnswer: AQuestion Status: New14) The insight that patterns of trade are primarily determined by international differences in labor productivitywas first proposed byA) Adam Smith.B) David Hume.C) David Ricardo.D) Eli Heckscher.E) Lerner and Samuelson.Answer: CQuestion Status: New15) Since the mid 1940s, the United States, has pursued a broad policy ofA) strengthening "Fortress America" protectionism.B) removing barriers to international trade.C) isolating Iran and other axes of evil.D) protecting the U.S. from the economic impact of oil producers.E) None of the above.Answer: BQuestion Status: NewB) the U.S. economy cannot grow when the balance of payments is in deficit.C) the U.S. has run huge trade deficits in every year since 1982.D) the U.S. never experienced a surplus in its balance of payments.E) None of the above.Answer: CQuestion Status: New17) The euro, a common currency for most of the nations of Western Europe, was introducedA) before 1900.B) before 1990.C) before 2000.D) in order to snub the pride of the U.S.E) None of the above.Answer: CQuestion Status: New18) During the first three years of its existence, the euroA) depreciated against the $U.S.B) maintained a strict parity with the $U.S.C) strengthened against the $U.S.D) proved to be an impossible dream.E) None of the above.Answer: AQuestion Status: New19) The study of exchange rate determination is a relatively new part of international economics, since,A) for much of the past century, exchange rates were fixed by government action.B) the calculations required for this were not possible before modern computers became available.C) economic theory developed by David Hume demonstrated that real exchange rates remain fixed overtime.D) dynamic overshooting asset pricing models are a recent theoretical development.E) None of the aboveAnswer: AQuestion Status: New20) A fundamental problem in international economics is how to produceA) a perfect degree of monetary harmony.B) an acceptable degree of harmony among the international tradepolicies of different countries.C) a world government that can harmonize trade and monetary policiesD) a counter-cyclical monetary policy so that all countries will not be adversely affected by a financialcrisis in one country.E) None of the above.Answer: BQuestion Status: NewB) by the International Monetary Fund.C) by the World.D) by an international treaty known as the General Agreement on Tariffs and Trade (GATT).E) None of the above.Answer: DQuestion Status: New22) The international capital market isA) the place where you can rent earth moving equipment anywhere in the world.B) a set of arrangements by which individuals and firms exchange money now for promises to pay in thefuture.C) the arrangement where banks build up their capital by borrowing from the Central Bank.D) the place where emerging economies accept capital invested by banks.E) None of the above.Answer: BQuestion Status: New23) International capital markets experience a kind of risk not faced in domestic capital markets, namelyA) "economic meltdown" risk.B) Flood and hurricane crisis risk.C) the risk of unexpected downgrading of assets by Standard and Poor.D) exchange rate risk.E) None of the above.Answer: DQuestion Status: New24) Since 1994, trade rules have been enforced byA) the WTO.B) the G10.C) the GATT.D) The U.S. Congress.E) None of the above.Answer: AQuestion Status: New25) In 1998 an economic and financial crisis in South Korea caused it to experienceA) a surplus in their balance of payments.B) a deficit in their balance of payments.C) a balanced balance of payments.D) an unbalanced balance of payments.E) None of the above.Answer: AQuestion Status: Newtrade meeting in Seattle ofA) the OECD.B) NAFTA.C) WTO.D) GATT.E) None of the above.Answer: CQuestion Status: New27) International Economists cannot discuss the effects of international trade or recommend changes ingovernment policies toward trade with any confidence unless they knowA) their theory is the best available.B) their theory is internally consistent.C) their theory passes the "reasonable person" legal criteria.D) their theory is good enough to explain the international trade that is actually observed.E) None of the above.Answer: DQuestion Status: New28) Trade theorists have proven that the gains from tradeA) must raise the economic welfare of every country engaged in trade.B) must raise the economic welfare of everyone in every country engaged in trade.C) must harm owners of "specific" factors of production.D) will always help "winners" by an amount exceeding the losses of "losers."E) None of the above.Answer: EQuestion Status: New1.2 International Economics: Trade and Money1) Cost-benefit analysis of international tradeA) is basically useless.B) is empirically intractable.C) focuses attention primarily on conflicts of interest within countries.D) focuses attention on conflicts of interests between countries.E) None of the above.Answer: CQuestion Status: Previous Edition2) An improvement in a country's balance of payments means a decrease in its balance of payments deficit, oran increase in its surplus. In fact we know that a surplus in a balance of paymentsA) is good.B) is usually good.C) is probably good.D) may be considered bad.E) is always bad.Answer: DQuestion Status: Previous EditionA) an international treaty.B) an international U.N. agency.C) an international IMF agency.D) a U.S. government agency.E) a collection of tariffs.Answer: AQuestion Status: Previous Edition4) The international debt crisis of early 1982 was precipitated when ________ could not pay its internationaldebts.A) RussiaB) MexicoC) BrazilD) MalaysiaE) ChinaAnswer: BQuestion Status: Previous Edition5) 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.Answer: DQuestion Status: Previous Edition6) 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) None of the above.Answer: EQuestion Status: New7) The distinction between international trade and international money is not useful sinceA) real developments in the trade accounts have monetary implications.B) the balance of payments includes both real and financial implications.C) developments caused by purely monetary changes have real effects.D) trade models focus on real, or barter relationships.E) None of the above.Answer: EQuestion Status: NewWhat are the logical underpinnings of this argument?Answer: Yes. They do not have sufficient resources to satisfy consumption needs; and also do not have a sufficiently large market to enable their industries to avail themselves of scale economy possibilities.Another answer would rely on a location argument. Assume that the "natural" market for any givenplant is a circle with a radius of n miles with the plant at its center. Assuming that the productionplants are located randomly throughout the country, then the probability that the typical circularmarket will encompass some foreign country is greater the smaller is the country.Question Status: Previous Edition9) It is argued that if a rich high wage country such as the United States were to expand trade with a relativelypoor and low wage country such as Mexico, then U.S. industry would migrate south, and U.S. wages would fall to the level of Mexico's. What do you think about this argument?Answer: The student may think anything. The purpose of the question is to set up a discussion, which will lead to the models in the following chapters.Question Status: Previous Edition10) Some patterns of international trade are easier to explain than others. Give several examples and explain.Answer: Historical circumstance can explain some patterns such as the relatively large trade flows from West Africa to France. The relatively sparse trade between countries within South America seems curious.Question Status: Previous Edition11) International trade tends to prove that international trade is beneficial to all trading countries. However,casual observation notes that official obstruction of international trade flows is widespread. How might you reconcile these two facts?Answer: This question is meant to allow students to offer preliminary discussions of issues, which will be explored in depth later in the book.Question Status: Previous Edition12) It is argued that small countries tend have more open economies than large ones. Is this empirically verified?What are the logical underpinnings of this argument?Answer: Yes. They do not have sufficient resources to satisfy consumption needs; and also do not have a sufficiently large market to enable their industries to avail themselves of scale economy possibilities.Another answer would rely on a location argument. Assume that the "natural" market for any givenplant is a circle with a radius of n miles with the plant at its center. Assuming that the productionplants are located randomly throughout the country, then the probability that the typical circularmarket will encompass some foreign country is greater the smaller is the country.Question Status: Previous Edition13) It is argued that if a rich high wage country such as the United States were to expand trade with a relativelypoor and low wage country such as Mexico, then U.S. industry would migrate south, and U.S. wages would fall to the level of Mexico's. What do you think about this argument?Answer: The student may think anything. The purpose of the question is to set up a discussion, which will lead to the models in the following chapters.Question Status: Previous Edition14) Some patterns of international trade are easier to explain than others. Give several examples and explain.Answer: Historical circumstance can explain some patterns such as the relatively large trade flows from West Africa to France. The relatively sparse trade between countries within South America seems curious.Question Status: Previous Editioncasual observation notes that official obstruction of international trade flows is widespread. How might you reconcile these two facts?Answer: This question is meant to allow students to offer preliminary discussions of issues, which will be explored in depth later in the book.Question Status: Previous Edition16) International Trade theory is one of the oldest areas of applied economic policy analysis. It is also an area forwhich data was relatively widely available very early on. Why do you suppose this is the case?Answer: In ancient times, public finance was not well developed. Most of the population was not producing and consuming within well-developed market economies, so that income and sales taxes were notefficient. One of the most convenient ways for governments to obtain resources was to set up customposts at borders and tax. Hence international trade was of great policy interest to princes and kings, aswas precise data of their main tax base.Question Status: Previous Edition17) The figure above is the Production Possibility Frontier (PPF) of Baccalia, where only two products areproduced, clothing and wine. In fact Baccalia is producing on its PPF at point A. By and large the people of Baccalia are content, as both their external and internal needs for warmth are satisfied in the mosteconomically efficient manner possible, given their available productive resources (and known technology).How much wine is being produced? How much cloth? If a person in this country wanted to purchase a liter of wine, what would be the price he or she would have to pay?Judging from what you learned in the previous paragraph, can you indicate at which point (if at all) the Community Indifference Curve is tangent to the Production Possibility Frontier? Explain your reasoning.Answer: 6 million liters of wine are being produced.3 million square yards of cloth are being produced.The price of 1 liter of wine is one half of a square yard of cloth.The tangency is at point A. We know this because otherwise the country would not be producing atthe point of maximum economic efficiency.Question Status: Previous Edition18) One day, Baccalia joined the WTO and joined the Global Village. They discovered that in the LWE (LondonWine Exchange), 1 liter of wine is worth 1 square yard of cloth. What is the logical production point they should strive for? (See figure.)Answer: 10 million liters of wine.Question Status: Previous Edition19) Baccalia wishes to enjoy to the fullest from the gains from trade, but is not willing to give up imbibing evenone drop of wine from the 6 million liters they consumed in their original autarkic state. If their newconsumption point is a point we shall designate as point b, describe where this point would be found. (See figure.)Answer: Vertically above point aQuestion Status: Previous Edition20) Where is the Community Indifference Curve family of curves tangent to their new Consumption PossibilityFrontier?Answer: At point b.Question Status: Previous Edition21) How can you prove that Baccalia has in fact gained from the availability of trade, and that their newsituation is superior to the pre-trade situation (with which they were quite content)?Answer: The country was consuming at point a before trade. It is now consuming at point b with trade. Point b represents a superior welfare combination of goods as compared to point a, since at b the country hasmore of each of the goods.Question Status: Previous Edition。
保罗克鲁格曼国际经济学英⽂课件1-7章Preface§1. Some distinctive features of International Economics: Theory and Policy.This book emphasizes several of the newer topics that previous authors failed to treat in a systematic way:·Asset market approach to exchange rate determination.·Increasing returns and market structure.·Politics and theory of trade policy.·International macroeconomic policy coordination·The word capital market and developing countries.·International factor movements.§2. Learning features:·Case studies·Special boxes·Captioned diagrams·Summary and key terms·Problems·Further reading§3.Reference books:·[美]保罗?克鲁格曼，茅瑞斯?奥伯斯法尔德，《国际经济学》，第6版，中译本，中国⼈民⼤学出版社，2007.·李坤望主编，《国际经济学》，第⼆版，⾼等教育出版社，2005.·Dominick Salvatore, International Economics, Prentice Hall International，第9版，清华⼤学出版社，英⽂版，2008. Chapter 1Introduction·Nations are more closely linked through trade in goods and services, through flows of money, and through investment than ever before.§1. What is international economics about?Seven themes recur throughout the study of international economics:·The gains from trade(National welfare and income distribution)·The pattern of trade·Protectionism·The balance of payments·Exchange rate determination·International capital market§2. International economics: trade and money·Part I (chapters 2 through 7) :international trade theory·Part II (chapters 8 through 11) : international trade policy ·Part III (chapters 12 through 17) : international monetary theory ·Part IV (chapters 18 through 22) : international monetary policyChapter 2 World Trade: An Overview§1 Who Trades with Whom?1. Size Matters: The Gravity ModelThe size of an economy is directly related to the volume of imports and exports.Larger economies produce more goods and services, so they have more to sell in the export market. Larger economies generate more income from the goods and services sold, so people are able to buy more imports.3 of the top 10 trading partners with the US in 2003 were also the 3 largest European economies: Germany, UK and France. These countries have the largest gross domestic product (GDP) in Europe.Cultural affinity: if two countries have cultural ties, it is likely that they also have strong economic ties.Geography: ocean harbors and a lack of mountain barriers make transportation and tradeeasier.2. Distance Matters: The Gravity ModelDistance between markets influences transportation costs and therefore the cost of imports and exports. Distance may also influence personal contact and communication, which may influence trade.Estimates of the effect of distance from the gravity model predict that a 1% increase in the distance between countries isassociated with a decrease in the volume of trade of 0.7% to 1%.Borders: crossing borders involves formalities that take time and perhaps monetary costs like tariffs. These implicit and explicit costs reduce trade. The existence of borders may also indicate the existence of different languages or different currencies, either of which may impede trade more.3.The gravity modelThe gravity model is:a b c ij i j ijT A Y Y D =?? where a, b, and c are allowed to differ from 1.§2. The Changing Composition of Trade1. Has the World Become “Smaller ”?There were two waves of globalization.1840–1914: economies relied on steam power, railroads, telegraph, telephones. Globalization was interrupted and reversed by wars and depression.1945–present: economies rely on telephones, airplanes, computers, internet, fiber optics,…2. Changing Composition of TradeToday, most of the volume of trade is in manufactured products such as automobiles, computers, clothing and machinery. Services such as shipping, insurance, legal fees and spending by tourists account for 20% of the volume of trade.Mineral products (e.g., petroleum, coal, copper) and agricultural products are a relatively small part of trade.Multinational Corporations and OutsourcingBefore 1945, multinational corporations played a small role world trade.But today about one third of all US exports and 42% of all US imports are sales from one division of a multinational corporation to another.Chapter 3Labor Productivity and Comparative Advantage:The Ricardian Model*Countries engage in international trade for two basic reasons:·Comparative advantage: countries are different in technology (chapter 3) or resource (chapter 4).·Economics of scale (chapter 6).*All motives are at work in the real world but only one motive is present in each trade model.§1. The concept of comparative advantage1. Opportunity cost : The opportunity cost of roses in terms of computers is the number of computers that could have been produced with the resources used to produce a given number of roses.Table 3-1 Hypothetical Changes in Production Million Roses Thousand Computers United States－10 ＋100 South America＋10 －30 Total 0 ＋702. Comparative advantage : A country has a comparative advantage in producing a good if the opportunity cost of producing that good in terms of other goods is lower in that country than it is in other countries.·Denoted by opportunity cost.·A relative concept : relative labor productivity or relative abundance.3. The pattern of trade: Trade between two countries can benefit both countries if each country exports the goods in which it has a comparative advantage.§2. A one-factor economy1.production possibilities: LC C LW W a Q a Q L +≤Figure 3-1 Home’s Production Possibility Frontier2. Relative price and supply·Labor will move to the sector which pays higher wage.·If C W LC LW P P a a >(C LC W LW P a P a >, wage in the cheese sector is higher ), the economy will specialize in the production of cheese.·In a closed economy, C W LC LW P P a a =.·If each country has absolute advantage in one good respectively, will there exist comparative advantage?§3. Trade in a one-factor world·Model : 2×1×2·Assume: **LC LW LC LW a a a a <Home has a comparative advantage in cheese.Home ’s relative productivity in cheese is higher.Home ’s pretrade relative price of cheese is lower than foreign.·The condition under which home has the comparative advantage involves all four unit labor requirement, not just two.1. Determining the relative price after trade·Relative price is more important than absolute price, when people make decisions on production and consumption.·General equilibrium analysis: RS equals RD . (World general equilibrium)·RS : a “step ” with flat sections linked by a vertical section. **(/)(/)LC LW L a L aFigure 3-3 World Relative Supply and Demand·RD : subsititution effects·Relative price after trade: between the two countries ’ pretrade price.(How will the size of the trading countries affect the relative price after trade? Which country ’s living condition improves more? Is it possible that a country produce both goods?)2. The gains from tradeThe mutual gain can be demonstrated in two alternative ways.·To think of trade as an indirect method of production :(1/)()1/LC C W LW a P P a > or C W LC LW P P a a >·To examine how trade affects each country ’s possibilities of consumption.Figure 3-4 Trade Expands Consumption Possibilities(How will the terms of trade change in the long-term? Are there income distribution effects within countries? )3. A numerical example:·Two crucial points :When two countries specialize in producing the goods in which they have a comparative advantage, both countries gain from trade.Comparative advantage must not be confused with absolute advantage; it is comparative, not absolute, advantage that determines who will and should produce a good.Table 3-2 Unit Labor Requirements Cheese WineHome 1LC a = hour per pound 2LW a = hours per gallonForeign*6LC a = hours per pound *3LW a = hours per gallon absolute advantage; relative price; specialization; the gains from trade.4. Relative wages·It is precisely because the relative wage is between the relative productivities that each country ends up with a cost advantage in one good.***LC LC LW LW a a w w a a >> **LC LC wa w a <；**LW LW wa w a >·Relative wages depend on relative productivity and relative demand on goods.Special box: Do wages reflect productivity?。
Chapter 3 The Ricardian ModelMultiple Choice Questions1.Countries trade with each other because they are _______ and because of______.A. different, costsB. similar, scale economiesC. different, scale economiesD. similar, costsE.None of the above.2.Trade between two countries can benefit both countries ifA.each country exports that good in which it has a comparativeadvantage.B.each country enjoys superior terms of trade.C.each country has a more elastic demand for the imported goods.D.each country has a more elastic supply for the supplied goods.E.Both C and D.3.The Ricardian theory of comparative advantage states that a country has acomparative advantage in widgets ifA.output per worker of widgets is higher in that country.B.that country's exchange rate is low.C.wage rates in that country are high.D.the output per worker of widgets as compared to the output of someother product is higher in that country.E.Both B and C.4.In order to know whether a country has a comparative advantage in theproduction of one particular product we need information on at least ____unit labor requirementsA.oneB.twoC.threeD.fourE.five5. A country engaging in trade according to the principles of comparativeadvantage gains from trade because itA.is producing exports indirectly more efficiently than it couldalternatively.B.is producing imports indirectly more efficiently than it coulddomestically.C.is producing exports using fewer labor units.D.is producing imports indirectly using fewer labor units.E.None of the above.6.In a two product two country world, international trade can lead to increasesinA.consumer welfare only if output of both products is increased.B.output of both products and consumer welfare in both countries.C.total production of both products but not consumer welfare in bothcountriesD.consumer welfare in both countries but not total production of bothproducts.E.None of the above.7. A nation engaging in trade according to the Ricardian model will find itsconsumption 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.8.In the Ricardian model, if a country's trade is restricted, this will cause allexcept which?A.Limit specialization and the division of labor.B.Reduce the volume of trade and the gains from tradeC.Cause nations to produce inside their production possibilities curvesD.May result in a country producing some of the product of itscomparative disadvantageE.None of the above.9.If a very small country trades with a very large country according to theRicardian model, thenA.the small country will suffer a decrease in economic welfare.B.the large country will suffer a decrease in economic welfare.C.the small country will enjoy gains from trade.D.the large country will enjoy gains from trade.E.None of the above.10.If the world terms of trade for a country are somewhere between the domesticcost ratio of H and that of F, thenA.country H but not country F will gain from trade.B.country H and country F will both gain from trade.C.neither country H nor F will gain from trade.D.only the country whose government subsidizes its exports will gain.E.None of the above.11.If the world terms of trade equal those of country F, thenA.country H but not country F will gain from trade.B.country H and country F will both gain from trade.C.neither country H nor F will gain from trade.D.only the country whose government subsidizes its exports will gain.E.None of the above.12.If the world terms of trade equal those of country ,F thenA.country H but not country F will gain from trade.B.country H and country F will both gain from trade.C.neither country H nor F will gain from trade.D.only the country whose government subsidizes its exports will gain.E.None of the above.13.The earliest statement of the principle of comparative advantage is associatedwithA.David Hume.B.David Ricardo.C.Adam Smith.D.Eli Heckscher.E.Bertil Ohlin.14.If one country's wage level is very high relative to the other's (the relativewage exceeding the relative productivity ratios), thenA.it is not possible that producers in each will find export marketsprofitable.B.it is not possible that consumers in both countries will enhance theirrespective welfares through imports.C.it is not possible that both countries will find gains from trade.D.it is possible that both will enjoy the conventional gains from trade.E.None of the above.15.The Ricardian model is based on all of the following exceptA.only two nations and two products.B. no diminishing returns.bor is the only factor of production.D.product quality varies among nations.E.None of the above.16.According to Ricardo, a country will have a comparative advantage in theproduct in which itsbor productivity is relatively low.bor productivity is relatively high.bor mobility is relatively low.bor mobility is relatively high.E.None of the above.17.Assume that labor is the only factor of production and that wages in the UnitedStates 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 unitsper hour.B.U.S. productivity equaled 30 units per hour whereas Japan's was 20.C.U.S. labor productivity equaled 20 and Japan's 30.D.U.S. labor productivity equaled 15 and Japan's 25 units per hour.E.None of the above.。
第一章绪论Y ou could say that the study of international trade and finance is where the discipline of economics as we know it began. Historians of economic thought often describe the essay "Of the balance of trade" by the Scottish philosopher David Hume as the first real exposition of an economic model. Hume published his essay in 1758, almost 20 years before his friend Adam Smith published The Wealth of Nations.And the debates over British trade policy in the early nineteenth century did much to convert economics from a discursive, informal field to the model-oriented subject it has been ever since.Yet the study of international economics has never been as important as it is now. At the beginning of the twenty-first century, nations are more closely linked through trade in goods and services, through flows of money, through investment in each other's economies than ever before. And the global economy created by these linkages is a turbulent place: both policymakers and business leaders in every country, including the United States, must now take account of what are sometimes rapidly changing economic fortunes halfway around the world.A look at some basic trade statistics gives us a sense of the unprecedented importance of international economic relations. Figure1-1 shows the levels of U.S. exports and imports as shares of gross domestic product from 1959 to 2000. The most obvious feature of the figure is the sharp upward trend in both shares: international trade has roughly tripled in importance compared with the economy as a whole.Almost as obvious is that while both exports and imports have increased, in the late 1990s imports grew much faster, leading to a large excess of imports over exports. How was the United States able to pay for all those imported goods? The answer is that the money was supplied by large inflows of capital, money invested by foreigners eager to buy a piece of the booming U.S. economy. Inflows of capital on that scale would once have been inconceivable; now they are taken for granted. And so the gap between imports and exports is an indicator of another aspect of growing international linkages, in this case the growing linkages between national capital markets.If international economic relations have become crucial to the United States, they are even more crucial to other nations. Figure 1-2 shows the shares of imports and exports in GDP for a sample of countries. The United States, by virtue of its size and the diversity of its resources, relies less on international trade than almost any other country. Consequently, for the rest of the world, international economics is even more important than it is for the United States.This book introduces the main concepts and methods of international economics and illustrates them with applications drawn from the real world. Much of the book is devoted to old ideas that are still as valid as ever: the nineteenth-century trade theory of David Ricardo and even the eighteenth-century monetary analysis of David Hume remain highly relevant to the twenty-first-century world economy. At the same time, we have made a special effort to bring the analysis up to date. The global economy of the 1990s threw up many new challenges, from the backlash against globalization to an unprecedented series of financial crises. Economists were able to apply existing analyses to some of thesechallenges, but they were also forced to rethink some important concepts.Figure 1-1: Exports and Imports as a Percentage of U.S. National IncomeFrom the 1960s to 1980, both exports and imports rose steadily as shares of U.S. income. Since1980, exports have fluctuated sharply.Figure 1-2: Exports and Imports as Percentages of National Income in1994Furthermore, new approaches have emerged to old questions, such as the impacts of changes in monetary and fiscal policy. We have attempted to convey the key ideas that have emerged in recent research while stressing the continuing usefulness of old ideas. What Is International Economics About?International economics uses the same fundamental methods of analysis as other branches of economics, because the motives and behavior of individuals are the same in international trade as they are in domestic transactions. Gourmet food shops in Florida sell coffee beans from both Mexico and Hawaii; the sequence of events that brought those beans to the shop is not very different, and the imported beans traveled a much shorter distance! Yet international economics involves new and different concerns, because international trade and investment occur between independent nations. The United States and Mexico are sovereign states; Florida and Hawaii are not. Mexico's coffee shipments to Florida could be disrupted if the U.S. government imposed a quota that limits imports; Mexican coffee could suddenly become cheaper to U.S. buyers if the peso were to fall in value against the dollar. Neither of those events can happen in commerce within the United States because the Constitution forbids restraints on interstate trade and all U.S. states use the same currency. The subject matter of international economics, then, consists of issues raised by the special problems of economic interaction between sovereign states. Seven themes recur throughout the study of international economics: the gains from trade, the pattern of trade, protectionism, the balance of payments, exchange rate determination, international policy coordination, and the international capital market.The Gains From TradeEverybody knows that some international trade is beneficial—nobody thinks that Norway should grow its own oranges. Many people are skeptical, however, about the benefits of trading for goods that a country could produce for itself. Shouldn't Americans buy American goods whenever possible, to help create jobs in the United States? Probably the most important single insight in all of international economics is that there are gains from trade—that is, when countries sell goods and services to each other, this exchange is almost always to their mutual benefit. The range of circumstances under which international trade is beneficial is much wider than most people imagine. It is a common misconception that trade is harmful if there are large disparities between countries in productivity or wages. On one side, businessmen in less technologically advanced countries, such as India, often worry that opening their economies to international trade will lead to disaster because their industries won't be able to compete. On the other side, people in technologically advanced nations where workers earn high wages often fear that trading with less advanced, lower-wage countries will drag their standard of living down—one presidential candidate memorably warned of a "giant sucking sound" if the United States were to conclude a free-trade agreement with Mexico.Yet the first model of trade in this book (Chapter 2) demonstrates that two countries can trade to their mutual benefit even when one of them is more efficient than the other at producing everything, and when producers in the less efficient country can compete only by paying lower wages. We'll also see that trade provides benefits by allowing countries toexport goods whose production makes relatively heavy use of resources that are locally abundant while importing goods whose production makes heavy use of resources that are locally scarce (Chapter 4). International trade also allows countries to specialize in producing narrower ranges of goods, giving them greater efficiencies of large-scale production.Nor are the benefits of international trade limited to trade in tangible goods. International migration and international borrowing and lending are also forms of mutually beneficial trade—the first a trade of labor for goods and services, the second a trade of current goods for the promise of future goods (Chapter 7). Finally, international exchanges of risky assets such as stocks and bonds can benefit all countries by allowing each country to diversify its wealth and reduce the variability of its income (Chapter 21). These invisible forms of trade yield gains as real as the trade that puts fresh fruit from Latin America in Toronto markets in February.While nations generally gain from international trade, however, it is quite possible that international trade may hurt particular groups within nations—in other words, that international trade will have strong effects on the distribution of income. The effects of trade on income distribution have long been a concern of international trade theorists, who have pointed out that:International trade can adversely affect the owners of resources that are "specific" to industries that compete with imports, that is, cannot find alternative employment in other industries (Chapter 3).Trade can also alter the distribution of income between broad groups, such as workers and the owners of capital (Chapter 4).These concerns have moved from the classroom into the center of real-world policy debate, as it has become increasingly clear that the real wages of less-skilled workers in the United States have been declining even though the country as a whole is continuing to grow richer. Many commentators attribute this development to growing international trade, especially the rapidly growing exports of manufactured goods from low-wage countries. Assessing this claim has become an important task for international economists and is a major theme of both Chapters 4 and 5.The Pattern of TradeEconomists cannot discuss the effects of international trade or recommend changes in government policies toward trade with any confidence unless they know their theory is good enough to explain the international trade that is actually observed. Thus attempts to explain the pattern of international trade—who sells what to whom—have been a major preoccupation of international economists.Some aspects of the pattern of trade are easy to understand. Climate and resources clearly explain why Brazil exports coffee and Saudi Arabia exports oil. Much of the pattern of trade is more subtle, however. Why does Japan export automobiles, while the United States exports aircraft? In the early nineteenth century English economist David Ricardo offered an explanation of trade in terms of international differences in labor productivity, an explanation that remains a powerful insight (Chapter 2). In the twentieth century, however, alternativeexplanations have also been proposed. One of the most influential, but still controversial, links trade patterns to an interaction between the relative supplies of national resources such as capital, labor, and land on one side and the relative use of these factors in the production of different goods on the other. We present this theory in Chapter 4. Recent efforts to test the implications of this theory, however, appear to show that it is less valid than many had previously thought. More recently still, some international economists have proposed theories that suggest a substantial random component in the pattern of international trade, theories that are developed in Chapter 6.How Much Trade?If the idea of gains from trade is the most important theoretical concept in international economics, the seemingly eternal debate over how much trade to allow is its most important policy theme. Since the emergence of modern nation-states in the sixteenth century, governments have worried about the effect of international competition on the prosperity of domestic industries and have tried either to shield industries from foreign competition by placing limits on imports or to help them in world competition by subsidizing exports. The single most consistent mission of international economics has been to analyze the effects of these so-called protectionist policies—and usually, though not always, to criticize protectionism and show the advantages of freer international trade.The debate over how much trade to allow took a new direction in the 1990s. Since World War II the advanced democracies, led by the United States, have pursued a broad policy of removing barriers to international trade; this policy reflected the view that free trade was a force not only for prosperity but also for promoting world peace. In the first half of the 1990s several major free-trade agreements were negotiated. The most notable were the North American Free Trade Agreement (NAFTA) between the United States, Canada, and Mexico, approved in 1993, and the so-called Uruguay Round agreement establishing the World Trade Organization in 1994.Since then, however, an international political movement opposing "globalization" has gained many adherents. The movement achieved notoriety in 1999, when demonstrators representing a mix of traditional protectionists and new ideologies disrupted a major international trade meeting in Seattle. If nothing else, the anti-globalization movement has forced advocates of free trade to seek new ways to explain their views.As befits both the historical importance and the current relevance of the protectionist issue, roughly a quarter of this book is devoted to this subject. Over the years, international economists have developed a simple yet powerful analytical framework for determining the effects of government policies that affect international trade. This framework not only predicts the effects of trade policies, it also allows cost-benefit analysis and defines criteria for determining when government intervention is good for the economy. We present this framework in Chapters 8 and 9 and use it to discuss a number of policy issues in those chapters and in the following two.In the real world, however, governments do not necessarily do what the cost-benefit analysis of economists tells them they should. This does not mean that analysis is useless. Economic analysis can help make sense of the politics of international trade policy, by showing who benefits and who loses from such government actions as quotas on imports and subsidies to exports. The key insight of this analysis is that conflicts of interest within nationsare usually more important in determining trade policy than conflicts of interest between nations. Chapters 3 and 4 show that trade usually has very strong effects on income distribution within countries, while Chapters 9, 10, and 11 reveal that the relative power of different interest groups within countries, rather than some measure of overall national interest, is often the main determining factor in government policies toward international trade.Balance of PaymentsIn 1998 both China and South Korea ran large trade surpluses of about $40 billion each. In China's case the trade surplus was not out of the ordinary—the country had been running large surpluses for several years, prompting complaints from other countries, including the United States, that China was not playing by the rules. So is it good to run a trade surplus, and bad to run a trade deficit? Not according to the South Koreans: their trade surplus was forced on them by an economic and financial crisis, and they bitterly resented the necessity of running that surplus.This comparison highlights the fact that a country's balance of payments must be placed in the context of an economic analysis to understand what it means. It emerges in a variety of specific contexts: in discussing international capital movements (Chapter 7), in relating international transactions to national income accounting (Chapter 12), and in discussing virtually every aspect of international monetary policy (Chapters 16 through 22). Like the problem of protectionism, the balance of payments has become a central issue for the United States because the nation has run huge trade deficits in every year since 1982. Exchange Rate DeterminationThe euro, a new common currency for most of the nations of western Europe, was introduced on January 1, 1999. On that day the euro was worth about $1.17. Almost immediately, however, the euro began to slide, and in early 2002 it was worth only about $0.85. This slide was a major embarrassment to European politicians, though many economists argued that the sliding euro had actually been beneficial to the European economy—and that the strong dollar had become a problem for the United States.A key difference between international economics and other areas of economics is that countries usually have their own currencies. And as the example of the euro-dollar exchange rate illustrates, the relative values of currencies can change over time, sometimes drastically. The study of exchange rate determination is a relatively new part of international economics, for historical reasons. For most of the twentieth century, exchange rates have been fixed by government action rather than determined in the marketplace. Before World War I the values of the world's major currencies were fixed in terms of gold, while for a generation after World War II the values of most currencies were fixed in terms of the U.S. dollar. The analysis of international monetary systems that fix exchange rates remains an important subject. Chapters 17 and 18 are devoted to the working of fixed-rate systems, Chapter 19 to the debate over which system, fixed or floating rates, is better, and Chapter 20 to the economics of currency areas such as the European monetary union. For the time being, however, some of the world's most important exchange rates fluctuate minute by minute and the role of changing exchange rates remains at the center of the international economics story.Chapters 13 through 16 focus on the modern theory of floating exchange rates. International Policy CoordinationThe international economy comprises sovereign nations, each free to choose its own economic policies. Unfortunately, in an integrated world economy one country's economic policies usually affect other countries as well. For example, when Germany's Bundesbank raised interest rates in 1990—a step it took to control the possible inflationary impact of the reunification of West and East Germany—it helped precipitate a recession in the rest of Western Europe. Differences in goals between countries often lead to conflicts of interest. Even when countries have similar goals, they may suffer losses if they fail to coordinate their policies. A fundamental problem in international economics is how to produce an acceptable degree of harmony among the international trade and monetary policies of different countries without a world government that tells countries what to do.For the last 45 years international trade policies have been governed by an international treaty known as the General Agreement on Tariffs and Trade (GATT), and massive international negotiations involving dozens of countries at a time have been held. We discuss the rationale for this system in Chapter 9 and look at whether the current rules of the game for international trade in the world economy can or should survive.While cooperation on international trade policies is a well-established tradition, coordination of international macroeconomic policies is a newer and more uncertain topic. Only in the last few years have economists formulated at all precisely the case for macroeconomic policy coordination. Nonetheless, attempts at international macroeconomic coordination are occurring with growing frequency in the real world. Both the theory of international macroeconomic coordination and the developing experience are reviewed in Chapters 18 and 19.The International Capital MarketDuring the 1970s, banks in advanced countries lent large sums to firms and governments in poorer nations, especially in Latin America. In 1982, however, this era of easy credit cameto a sudden end when Mexico, then a number of other countries, found themselves unableto pay the money they owed. The resulting "debt crisis" persisted until 1990. In the 1990s investors once again became willing to put hundreds of billions of dollars into "emerging markets," both in Latin America and in the rapidly growing economies of Asia. All too soon, however, this investment boom too came to grief; Mexico experienced another financial crisis at the end of 1994, and much of Asia was caught up in a massive crisis beginning in the summer of 1997. This roller coaster history contains many lessons, the most undisputed of which is the growing importance of the international capital market.In any sophisticated economy there is an extensive capital market: a set of arrangements by which individuals and firms exchange money now for promises to pay in the future. The growing importance of international trade since the 1960s has been accompanied by a growth in the international capital market, which links the capital markets of individual countries. Thus in the 1970s oil-rich Middle Eastern nations placed their oil revenues in banks in London or New York, and these banks in turn lent money to governments and corporations in Asia and Latin America. During the 1980s Japan converted much of themoney it earned from its booming exports into investments in the United States, including the establishment of a growing number of U.S. subsidiaries of Japanese corporations. International capital markets differ in important ways from domestic capital markets. They must cope with special regulations that many countries impose on foreign investment; they also sometimes offer opportunities to evade regulations placed on domestic markets. Since the 1960s, huge international capital markets have arisen, most notably the remarkable London Eurodollar market, in which billions of dollars are exchanged each day without ever touching the United States.Some special risks are associated with international capital markets. One risk is that of currency fluctuations: If the euro falls against the dollar, U.S. investors who bought euro bonds suffer a capital loss—as the many investors who had assumed that Europe's new currency would be strong discovered to their horror. Another risk is that of national default: A nation may simply refuse to pay its debts (perhaps because it cannot), and there may be no effective way for its creditors to bring it to court.The growing importance of international capital markets and their new problems demand greater attention than ever before. This book devotes two chapters to issues arising from international capital markets: one on the functioning of global asset markets (Chapter 21) and one on foreign borrowing by developing countries (Chapter 22).International Economics: Trade and MoneyThe economics of the international economy can be divided into two broad subfields: the study of international trade and the study of international money. International trade analysis focuses primarily on the real transactions in the international economy, that is, on those transactions that involve a physical movement of goods or a tangible commitment of economic resources. International monetary analysis focuses on the monetary side of the international economy, that is, on financial transactions such as foreign purchases of U.S. dollars. An example of an international trade issue is the conflict between the United States and Europe over Europe's subsidized exports of agricultural products; an example of an international monetary issue is the dispute over whether the foreign exchange value of the dollar should be allowed to float freely or be stabilized by government action.In the real world there is no simple dividing line between trade and monetary issues. Most international trade involves monetary transactions, while, as the examples in this chapter already suggest, many monetary events have important consequences for trade. Nonetheless, the distinction between international trade and international money is useful. The first half of this book covers international trade issues. Part One (Chapters 2 through 7) develops the analytical theory of international trade, and Part Two (Chapters 8 through 11) applies trade theory to the analysis of government policies toward trade. The second half of the book is devoted to international monetary issues. Part Three (Chapters 12 through 17) develops international monetary theory, and Part Four (Chapters 18 through 22) applies this analysis to international monetary policy.下一章劳动生产率和比较优势: 李嘉图模型。
