CH3國際貿易古典模型中英文(ppt 14頁)

ADAM SMITH
The Wealth of Nations
DAVID Ricardo
The Principles of Political Economy
Comparative Advantage Theory
Absolute Advantage
PIN MAKING
Specialization between workers
Specialization between Nations
International division of labor
----MERCANTALISM: encouraging exports, decreasing imports
ADDITIONAL ASSUMPTIONS
Factors cannot move between nations
No barriers
Trade balance
COST----LABOR
Constant Returns to Scale
The General Equilibrium Solution of The Classical Model
Pre-trade Equilibriums
Fig 3.1 3.2
Terms of trade
CPF Consumption possibility frontier
Trade triangle
Walras Law
Reciprocal demand
The Gains From International Trade
Consumption gains from trade
Production gains from trade
The closer the terms of trade are to one country’s pre-trade price ratio, the greater the gains for the other country.
Importance of being unimportant!!!

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