CHAPTEr 2 EN LABOR PRODUCTIVITY COMPARATIVE ADVANTAGE(比较优势) THERICARDIANMODEL(李嘉图模型
CHAPTER 2 LABOR PRODUCTIVITY COMPARATIVE ADVANTAGE（比较优势） THE RICARDIAN MODEL（李嘉图模型）
Chapter Organization. Introduction The Concept of Comparative Advantage A One-Factor Economy Trade in a One-Factor World Comparative Advantage with Many Goods Adding Transport Costs and Nontraded Goods Summary
2 Chapter Organization • Introduction • The Concept of Comparative Advantage • A One-Factor Economy • Trade in a One-Factor World • Comparative Advantage with Many Goods • Adding Transport Costs and Nontraded Goods • Summary
, Introduction Countries engage in international trade for two basic reasons They are different from each other in terms of climate, land, capital, labor, and technology They try to achieve scale economies,in proauction The ricardian model is based on technological differences across countries These technological differences are reflected in differences in the productivity of labor
3 • Countries engage in international trade for two basic reasons: – They are different from each other in terms of climate, land, capital, labor, and technology. – They try to achieve scale economies in production. • The Ricardian model is based on technological differences across countries. – These technological differences are reflected in differences in the productivity of labor. Introduction
The Concept of4 Comparative Advantage. On Valentine's Day the U.S. demand for roses is about 10 million roses Growing roses in the U.S. in the winter is difficult Heated greenhouses should be used.A The costs for energy, capital, and labor are substantial o Resources for the production of roses could be used to produce other goods, say computers
4 • On Valentine’s Day the U.S. demand for roses is about 10 million roses. • Growing roses in the U.S. in the winter is difficult. – Heated greenhouses should be used. – The costs for energy, capital, and labor are substantial. • Resources for the production of roses could be used to produce other goods, say computers. The Concept of Comparative Advantage
The Concept of4 Comparative Advantage. Opportunity Cost The opportunity cost of roses in terms of computers is the number of computers that could be produced with the same esources as a given number of roses Comparative Advantage A country has a comparative advantage in producing a goods if the opportunity cost of producing that goods in terms of other goods is lower in that country than it is in other countries
5 • Opportunity Cost – The opportunity cost of roses in terms of computers is the number of computers that could be produced with the same resources as a given number of roses. • Comparative Advantage – A country has a comparative advantage in producing a goods if the opportunity cost of producing that goods in terms of other goods is lower in that country than it is in other countries. The Concept of Comparative Advantage