Presentation is loading. Please wait.

Presentation is loading. Please wait.

The Production Possibility Frontier (Fixed Proportions)

Similar presentations


Presentation on theme: "The Production Possibility Frontier (Fixed Proportions)"— Presentation transcript:

1 The Production Possibility Frontier (Fixed Proportions)

2 The Rybczynski Theorem

3 The Magnification Effect for Quantities

4 The Stolper-Samuelson Theorem
Figure 5.4. Zero Profit Lines in Clothing and Steel

5 Figure 5.5. Graphical Depiction of Stolper-Samuelson Theorem

6 The Production Possibility Frontier (Variable Proportions)

7 Figure 5.6. The PPF in the Variable Proportions H-O Model

8 The Heckscher-Ohlin Theorem
Learning Objectives Learn the Heckscher-Ohlin theorem highlighting the determinants of the pattern of trade. Identify the effects of trade on prices and outputs using a PPF diagram.

9 Endowment Differences and the PPF

10 Depicting a Free Trade Equilibrium in the Heckscher-Ohlin Model
Learning Objective Learn how to depict a free trade equilibrium on a PPF diagram in the Heckscher-Ohlin (H-O) model.

11 Free Trade Equilibria in an H-O PPF Diagram

12 FIGURE 5-1 Factor Intensities for Commodities X and Y
in Nations 1 and 2. Salvatore: International Economics, 7th Edition © 2001, John Wiley & Sons, Inc.

13 FIGURE 5-2 The Shape of the Production Frontiers of
Nation 1 and Nation 2. Salvatore: International Economics, 7th Edition © 2001, John Wiley & Sons, Inc.

14 FIGURE 5-3 General Equilibrium Framework of the
Heckscher-Ohlin Theory. Salvatore: International Economics, 7th Edition © 2001, John Wiley & Sons, Inc.

15 FIGURE 5-4 The Heckscher-Ohlin Model.
Salvatore: International Economics, 7th Edition © 2001, John Wiley & Sons, Inc.

16 FIGURE 5-5 Relative Factor-Price Equalization.
Salvatore: International Economics, 7th Edition © 2001, John Wiley & Sons, Inc.

17 National Welfare Effects of Free Trade in the Heckscher-Ohlin Model

18 The Distributive Effects of Free Trade in the Heckscher-Ohlin Model
วัตถุประสงค์ Learn how income is redistributed between factors of production when adjusting to free trade.

19 Factor-Price Equalization
Learning Objective Understand the relationship between wages and rents across countries in H-O model.

20 The Distributive Effects of Free Trade in the H-O Model

21 ภาพรวม : ปัจจัยที่สามารถเคลื่อนย้ายได้
ปัจจัยที่สามารถเคลื่อนย้ายภายในประเทศ(Domestic Factor Mobility) The Immobile Factors Model-Assumptions Immobile Factor : Production Assumptions The Production Possibility Frontier in the Immobile Factor Model

22 ภาพรวม : ปัจจัยที่สามารถเคลื่อนย้ายได้
The Immobile Factor Model (โมเดลปัจจัยที่เคลื่อนย้ายไม่ได้)

23

24 Depicting a free Trade Equilibrium in the Immobile Factor Model

25

26 Production and Consumption Efficiency Gains from Free Trade

27 The Specific Factor Model: Overview

28 Specific Factor Model—Single-Firm Equilibrium

29 Specific Factor Model—Factor Payments

30 Specific Factor Model—Mussa Diagram

31 Effects of a Price increase

32 Dynamic Income Redistribution and Trade
Learning Objective Integrate the results of income redistribution from three separate models: the immobile factor model, the specific factor (SF) model, and the Heckscher-Ohlin (H-O) model.

33 Short-Run Factor Income Effects of Trade Liberalization

34 Medium-Run Factor Income Effects of Trade Liberalization

35 Long-Run Factor Income Effects of Trade Liberalization

36 Dynamic Export-Capital Income Effects of Trade Liberalization

37 Dynamic Import-Capital Income Effects of Trade Liberalization

38 Dynamic Export-Labor Income Effects of Trade Liberalization

39 Economies of Scale

40

41 6.1. Unit-Labor Requirement with Economies of Scale

42 Gains from Trade with Economies of Scale: A Simple Explanation

43 Monopolistic Competition

44

45 The Costs and Benefits of Free Trade under Monopolistic Competition


Download ppt "The Production Possibility Frontier (Fixed Proportions)"

Similar presentations


Ads by Google