In Class – Week 2 Gains from Exchange Why do people willingly trade?

Slides:

Advertisements

Similar presentations

Unit 4 4th Grade Social Studies Vocabulary

Advertisements

Virginia and the U.S. in the Global Economy

Economics 310 First Homework-Answer. Department of Economics College of Business and Economics California State University-Northridge Professor Kenneth.

Economics 2010 Rober Martinez-Espineira Lecture 4 Growth and Trade.

Comparative Advantage: Even if one person is better, i.e., more efficient, at producing all goods than another person, trade can still be profitable for.

Gains to Trade. Two country model with constant costs Assume just two products and two countries. With constant costs, the PPCs are straight lines (first.

International Trade Models Mercantilism; The Classical Theories: –The Principle of Absolute Advantage –The Principle of Comparative Advantage The Heckscher-Ohlin-Samuelson.

1 Interdependence And The Gains From Trade Trade can make everyone better off.

Why Nations Trade Chapter 18. Concepts Affecting Trade  Absolute advantage – exists when one nation can produce goods more cheaply than another nation.

The Origins of Trade Theory Professor Bryson Marriott School.

The Welfare Analysis of Free Trade The fact that a nation unequivocally gains from international trade does not mean that all groups within the nation.

The Origins of Trade Theory Professor Bryson Marriott School.

Trade Theory: The High Points

COMPETITIVE ADVANTAGE In the IS field, competitive advantage refers to the use of information to gain marketplace leverage Porter argues that firms achieve.

International Trade Models Mercantilism; The Classical Theories: –The Principle of Absolute Advantage –The Principle of Comparative Advantage The Heckscher-Ohlin-Samuelson.

Notebook # 26- Economics 17-1 Absolute & Comparative Advantage.

© K. Cuthbertson and D. Nitzsche Figures for Chapter 7 OPTIONS MARKETS (Financial Engineering : Derivatives and Risk Management)

ADVERTISE THIS! Our Product Name: Price: Where to buy it: How to use it and good points:

INTERNATIONAL TRADE ASHA SUKUMARAN. 2 Table of Contents Trade Absolute Advantage Comparative Advantage Law of Comparative Advantage Limits to Trade Terms.

C H A P T E R 3 Prepared by: Fernando and Yvonn Quijano © 2006 Prentice Hall Business Publishing Economics: Principles and Tools, 4/e O’Sullivan/ Sheffrin.

ECN 211 Review #4.

Glossary of Key Terms balance of payments. An account of the flow of goods, services, and money coming into and going out of the country. capital. Money.

CARDIO # 6 1.According to the map on your TEXT BOOK page 37, around what physical feature is Egypt's population the densest? 2.Why do you think more people.

Ketergantungan dan Hasil dalam Perdagangan 1Agribisnis UB.

Review for Exam 1 Chapters 1 Through 5. Production Possibilities Frontiers and Opportunity Costs Learning Objective 2.1 Production possibilities frontier.

Beginning Activities Title today’s lesson: Absolute and Comparative Advantage Notes Activity: Use pages to explain the difference between absolute.

Ch 3 Review popcorn peanuts popcorn a.No trade; total production of popcorn and peanuts: Alpha 75 popcorn + Omega 150 popcorn.

Scarcity, Trade-offs, and Comparative Advantage. Scarcity and Trade-offs Households, firms and governments continually face decisions about how best to.

Ch. 10 Global Economy 10.1 The Global Marketplace Objectives:

The Global Marketplace Freshman Seminar - Introduction to Business Mr. Hays November 26, 2007 Freshman Seminar - Introduction to Business Mr. Hays November.

International Business Part I BCS-BE-8: The student analyzes how international business impacts business.

Circular Flow Lesson 2, Activity 5 1. Give three examples of resource owners. Answers will vary, answer can be anyone who has land, labor, capital or entrepreneurship.

TRADE. PRODUCTION POSSIBILITIES ABSOLUTE ADVANTAGE Pictou has an absolute advantage in both beef and oats. It produces more output of each good with.

INTERNATIONAL ECONOMICS. Reasons for trade Coffee from: An apple from: A pencil from: A computer from: Clothes from: ¿WHY? Differences in factor endowments.

Do Now Exercise: Research, Discuss, and Document the challenges of “International Trading.” How would this have effected your “Doyle’s” project?

1 Comparative Advantage, Exchange Rates, and Globalization Application: Comparative Advantage United StatesSaudi Arabia % of resources devoted to.

Competition & Stock Challenge Wrap-Up. Today, our goal is to learn about: Rationalization Competitive Advantage Absolute Advantage Opportunity Cost Comparative.

International Trade Trade between China and Italy ◦ China  makes everything cheaper, faster, better  why trade with Italy? Continuing growth of international.

International Trade Chapter 24. Chapter 37 Figure 37.1 Production Possibilities, U.S. and Brazil.

PERSONAL TRAINING As a Profit Center THE PLATINUM SERIES The System That Works A FitTrac Module.

International Trade. Trade allows nations to specialize in some products and then trade them for goods and services that are more expensive to produce.

International Trade 1. Why Nations Trade  Believe products received worth more than what they give up  Increases variety of goods available  Sometimes.

Defined: International trade is the exchange of capital, goods, and services across international borders or territories. Important: When we say countries.

Stock Market Game (Your Name Here). Name of Company Last Trade 52-Week Range What was the stock price 5 years ago? # of Employees Sector/Industry Analyst.

The PPF Model The economic resources nations have to produce goods and services are scarce. Decision-makers face trade-offs as the result of scarcity.

Comparative Advantage and the Gains from Trade © 2003 South-Western/Thomson Learning.

Trade Analysis Analyzing Trade Problems using a 4-step process.

Opportunity Cost Review Take 2 minutes: What does “there is no such thing as a free lunch mean” to you?

1 Introduction to International Trade and Trade Policy.

Lesson 2 – Market Segmentation and Marketing Mix.

How do Stock Markets Work?. Stocks involve more RISK than Bonds.

Slide 2-1Copyright © 2003 Pearson Education, Inc. PPF H PPF F R S R D Relative price The pattern of trade The gains from trade equilibrium The Ricardian.

Module Comparative Advantage and Trade KRUGMAN'S MACROECONOMICS for AP* 4 Margaret Ray and David Anderson.

INTERNATIONAL TRADE Why do nations trade?. What is international trade?  Exchange of capital goods and services across international borders.  Imports.

International Trade and Trade Policy

Comparative Advantage and the Gains from Trade

Read to Learn Explain why the world has become a global economy. Explain why people and countries specialize in producing goods and services.

Markets and Trade.

Gains from Exchange Why do people willingly trade?

FIGURE 3-1 Production Frontiers of Nation 1 and Nation 2 with Increasing Costs. Salvatore: International Economics, 7th Edition © 2001, John Wiley & Sons,

Vocabulary Review Week 3.

International Trade and Trade Policy

10.1 The Global Marketplace

Vocabulary!!! Woo Hoo!.

Standard 4: Understanding Investing

International Trade Models

International Trade By Ben Quick.

Absolute v. Comparative Advantage

Presentation transcript:

In Class – Week 2 Gains from Exchange Why do people willingly trade?

Comparative Advantage and Trade Learning Objective 2.2 Trade The act of buying or selling. Specialization and Gains from Trade FIGURE 2-4 Production Possibilities for You and Your Neighbor, without Trade

How does this work? Two people in this market – You and Your Neighbor Two goods being produced – Apples and Cherries See if you can do better by specializing – That is, what has the least opportunity costs for each of you to produce What will be the market price for exchange?