Slide 2-1Copyright © 2003 Pearson Education, Inc.
解釋
RD'
Q'
2 解釋 RD 解釋
1 解釋
aLC/aLW
a*LC/a*
LW RS 解釋
Figure 2-3: World Relative Supply and Demand
Trade in a One-Factor World
Relative priceof cheese, PC/PW
Relative quantityof cheese, QC + Q*
C
QW + Q*W
L/aLC
L*/a*LW解釋 均衡
6/3=2解釋
1/2解釋
Slide 2-5Copyright © 2003 Pearson Education, Inc.
Trade in a One-Factor World
The Pattern of trade • It therefore remains true that if acountry does
specialize, it will do so in the good in which it has a comparative advantage. 回相對價格 ; 回圖形
The relative price after trade• if neither country produces both goods, we must have
PC
PW
aLCa
Lw
aLC *
aLw *< <
Slide 2-6Copyright © 2003 Pearson Education, Inc.
Why a country’s production pattern is determined by comparative advantage?• Relative Wages
– Because there are technological differences between the two countries, trade in goods does not make the wages equal across the two countries.
– The wage rate in Home is PC / aLC . 證明用
– The wage rate in Foreign is PW / aLW* .
Trade in a One-Factor World
Slide 2-7Copyright © 2003 Pearson Education, Inc.
– The relative wage of a country’s workers is the amount they are paid per hour, compared with the amount workers in another country are paid per hour.
– The relative wage of Home workers is
Trade in a One-Factor World
PC / aLC
PW / aLW*
PC
PW
aLw *
aLC
= .
Slide 2-8Copyright © 2003 Pearson Education, Inc.
• According to relative price after trade: –
–
–
Trade in a One-Factor World
aLW*
aLC
aLW*
aLC
aLC
aLW<
PC
PW<
aLC*
aLW*
aLW*
aLC
aLW*
aLW<
PC / aLC
Pw / aLw* <
aLC*
aLC
1 / aLW
1/ aLW* <
PC / aLC
Pw / aLw*
(3/2) (6)
<1 / aLC
1/ aLC*
說明 1
說明 2
舉例
(3) 說明
Slide 2-10Copyright © 2003 Pearson Education, Inc.
relative wage -- 2
• The relative wage lies between the ratios of the two countries’ productivities in the two industries, so each country ends up with a cost advantage in one good.
– Because of its lower wage rate, F has a cost advantage in wine, even though it has lower productivity.
– The country with the higher absolute advantage will enjoy a higher wage after trade.