上降克竹Social Coalition Theory ifrade SHANGHAI JIAO TONG UNIVERSITY EXAMPLE:United States 国 Land→Abundant 国 Labor Scarce (relative to other countries) 国 Capital-Abundant 强 LAAAANAAMA 云 SHANC 1日
1, Social Coalition Theory in Trade EXAMPLE: United States Land → Abundant Labor → Scarce (relative to other countries) Capital → Abundant
上降克Social Coalition Theory infrade SHANGHAI JIAO TONG UNIVERSITY Q:Which groups in the US should favor/oppose free trade? © Capital intensive (e.g.,computers)and land intensive (e.g.,agriculture)should favor free trade. 国 Labor intensive (e.g.,textiles)should oppose free trade. 强 SHANC LLA 1日G
1, Social Coalition Theory in Trade Q: Which groups in the US should favor/ oppose free trade? Capital intensive (e.g., computers) and land intensive (e.g., agriculture) should favor free trade. Labor intensive (e.g., textiles) should oppose free trade
上元58 ocial Coalition Theory mfrade SHANGHAI JIAO TONG UNIVERSITY Three Factors:Land,Labor,and Capital Land-Labor Ratio No country can be rich both in land and in labor: 国 a high land-labor ratio implies abundance of land and scarcity of labor;a low ratio signifies the opposite. 1日
1, Social Coalition Theory in Trade Three Factors: Land, Labor, and Capital Land-Labor Ratio No country can be rich both in land and in labor: a high land-labor ratio implies abundance of land and scarcity of labor; a low ratio signifies the opposite