国际经济学第九版英文课后答案
国际经济学第九版英文课后答案第20单元
国际经济学第九版英⽂课后答案第20单元CHAPTER 20FLEXIBLE VERSUS FIXED EXCHANGE RATES, THE EUROPEAN MONETARY SYSTEM, AND MACROECONOMIC POLICY COORDINATION OUTLINE20.1 Introduction20.2 The Case for Flexible Exchange Rates20.2a Market Efficiency20.2b Policy Advantages20.3 The Case for Fixed Exchange Rates20.3a Less Uncertainty20.3b Stabilizing Speculation20.3c Price DisciplineCase Study 20-1: Macroeconomic Performance Under Fixed and Flexible Rates Regimes20.4 Optimum Currency Areas and the European Monetary System20.4a Optimum Currency Areas20.4b European Monetary SystemCase Study 20-2: The 1992-3 Currency Crisis in the European Monetary System20.4c Transition to Monetary UnionCase Study 20-3: Maastricht Convergence Indicators20.4d Creation of the EuroCase Study 20-4: Benefits and Costs of the Euro20.4e European Central Bank and Common Monetary Policy20.5 Exchange Rate Bands, Adjustable Pegs, Crawling Pegs, and Managed Floating20.5a Exchange Rate Bands20.5b Adjustable Peg Systems20.5c Crawling Pegs20.5d Managed FloatingCase Study 20-5: Exchange Rate Arrangements of IMF Members20.6International Macroeconomic Policy CoordinationAppendix: Exchange Rate ArrangementsKey TermsFreely floating exchange rate system European Monetary Union Optimum currency area or block EuroEuropean Monetary System (EMS) European Central Bank (ECB)European Currency Unit (ECU) Adjustable peg systemEuropean Monetary Cooperation Fund (EMCF) Crawling peg systemExchange Rate Mechanism (ERM) European Monetary Institute (EMI) Leaning against the wind Dirty floatingManaged floating exchange rate system Maastricht TreatyInternational macro policy coordination Growth and Stability Pact (GSP) Lecture Guide:1. This chapter (not a core chapter) brings together for the most part materialscattered throughout previous chapters on the question of fixed versus flexibleexchange rates. But it also examines the European Monetary System andinternational macroeconomic cooperation. It is an important chapter butbecause of the time constraint, I would omit it in a one-semester undergraduatecourse in international economics, except for section 20.4 on the European Union and the short section on international macroeconomic policy coordination.2. If I were to cover this chapter, I would cover sections 1 to 3 in the first lecture,section 4 in the second lecture, and sections 5 and 6 in the third lecture andassigning the end of chapter problems.Answers to Problems:1. a. The U.S. will export the commodity because at R=2, P=$7 in the U.S. and P=$8in the U.K.b. The U.S. has a comparative disadvantage in this commodity at the equilibriumexchange rate.2. Under a fixed exchange rate system and perfectly elastic international capitalflows, the attempt on the part of the nation to reduce its money supply (tightmonetary policy) tends to increase interest rates in the nation and attract capitalinflows. This frustrates the attempt on the part of the nation's monetary authorities to reduce the nation's money supply. On the other hand, the attempt of the nation's monetary authorities to increase the money supply of the nation will be frustrated by the tendency of the nation's interest rate to fall, resulting in a capital outflowthat would leave the nation's money supply unchanged (see section 17.4c).3. See Figure 1.Figure 1 shows that for a shift in the supply of pounds from S to S' and S*, theexchange rate fluctuate more when the demand curve for pounds is more inelastic (D*) then when it is more elastic (D).4. See Figure 2.Curve A shows the fluctuation in the exchange rate over the business cyclewithout speculation; curve B shows the fluctuation in the exchange over thebusiness cycle with stabilizing speculation, while curve C shows the fluctuation in the exchange rate over the business cycle with destabilizing speculation.5. See Figure 3 on the previous page.6. An optimum currency area involves permanently fixed exchange rates as well ascommon monetary and fiscal policies among its members. Thus, an optimumcurrency area resemble a single economic entity and monetary union. There areno such implications for countries which are connected only by fixed exchangerates.7. (a) With a single central bank and currency the member nations of the EuropeanUnion can no longer print money and thus each member no longer has thewherewithal to conduct monetary policy. The original central bank of eachmember nation now assumes functions similar to that of the federal reserve banks in the Federal Reserve System in the United States. That is, they affect thecommunity-wide monetary policy only through their participation in central bank deliberations and decisions.(b) With a single currency, of course, there are no such things and exchange ratesamong the member nations' currencies, just as there are no exchange rates for the dollar among the states of the United States. Or better, the exchange rate ispermanently fixed at 1:1.8. The benefits that the EU would get from establishing a single currency are:eliminating the costs involved in exchanging currencies, eliminating the risk ofexchange fluctuations and currency crises, inducing nations to adopt moreappropriate economic policies and being able, as a community, to withstand better external shocks. The costs results from the inability of nations to change theirexchange rate and to tailor monetary and fiscal policies to their specific nationalneeds.9. See Figure 4.10. See the dashed curve in Figure 5.11. It is true that flexible exchange rates tend to insulate the economy frominternational disturbances. For example, the tendency of a nation to followinflationary policies will result in a depreciation of its currency. This means thatthe trade partner's currency will appreciate, making its imports cheaper and thuspreventing the importation of inflation from abroad.In an integrated world capital market, however, inflationary policies by one nation will lower its interest rates in the nation and will lead to capital outflows. Unless the trade partner is able to continuously sterilize these capital inflows, inflationary pressures will spread to it also. These inflationary pressures can be avoided byinternational policy coordination. Thus, international policy coordination is useful also under a flexible exchange rate system because in a world of unrestrictedinternational capital flows flexible exchange rate do not insulate nations completely from their partner's policies.12. Game theory is a method for examining the effect of a given policy or course ofaction on a nation or other economic unit for each possible response by anothernation or other economic unit. Game theory can thus be used to show that acooperative equilibrium can be better for (i.e., can increase the welfare of) eachnation or economic unit than if each tries to maximize its welfare independently.13. In a noncooperative equilibrium, each nation is likely to follow a loose fiscalpolicy but a tight monetary policy in order to keep its interest rates up and thereby attract foreign capital and keep the international value of its currency high, so asto keep import prices low. However, when all nations do this their efforts will be self-defeating and interest rates will be higher than with a cooperativeequilibrium. High interest rates will reduce long-term growth for all nations. Witha cooperative equilibrium, on the other hand, nations will use restrictive fiscal andeasy monetary policies. This will keep interest rates low and thus stimulate long-run growth.14. (a) There have been four episodes of significant international macroeconomic policycoordination among the leading industrial nations during the past three decades.The first occurred in 1978 when Germany was induced to stimulate its economyand play as "locomotive" and stimulate growth in other leading industrialcountries also. The effort ended when Germany, fearing inflation, stoopedstimulating its economy. The second was the Plaza Agreement in September of1985 when the United States, Japan, Germany, France, and the United Kingdommet at the Plaza Hotel in New York to engineer a "soft landing" for theovervalued dollar. This effort was regarded as successful but the markets werealready lowering the value of the dollar. The third case is represented by theLouvre Accord in February 1987, when the leading industrial nations agreed onimplicit target zones for the exchange rates among the leading currencies. Thisagreement, however, became inoperative soon after it was reached. The fourthcase is evidenced by the coordinated quick monetary response on the part of theUnited States, Germany, and Japan to October 1987 worldwide equity-marketcrash.(b) International macroeconomic policy coordination to date has been episodic andlimited in scope and it is unlikely that it will be very different in the future. App. On Janaury 1, 1999, 11 of the 15 members of the European Union adopted the euro as their common currency. Britain, Sweden, and Denmark decided not tojoin from the start, but retained the option to join later. Greece was not admittedbecause of its inability to meet most of the Maastricht criteria. The likelyhood,however, is that all four will join the euro by July 2002, when the euro is tocompletely replace the currencies of the participating nations. In the meantime, a new exchange rate mechanism, the ERM II, was installed to keep the currenciesof these four countries from fluctuating to widely, inanticipation of their joining the euro.Multiple-choice Questions:1. An alleged advantage of flexible over fixed exchange rates is:*a. market efficiencyb. stabilizing speculationc. price disciplined. all of the above2. Flexible exchange rates:a. enhance the effectiveness of fiscal policyb. reduce the effectiveness of fiscal policy*c. enhance the effectiveness of monetary policyd. reduce the effectiveness of monetary policy3. Under a flexible as compared to a fixed exchange rate system:*a. a nation can more easily achieve its desired inflation-unemployment tradeoffb. it is more difficult for a nation to achieve its desired inflation-unemployment tradeoffc. it is more difficult for a nation to achieve internal balanced. it is more difficult for a nation to achieve external balance4. Everything else being the same, the volume of trade is likely to be:a. larger under a flexible than under a fixed exchange rate system*b. larger under a fixed than under a flexible exchange rate systemc. equal under a flexible and fixed exchange rate systemd. any of the above5. Most economists believe that under "normal conditions" speculation:*a. is stabilizingb. is destabilizingc. is neither stabilizing nor destabilizingd. seldom occurs6. Price discipline is:*a. greater under a fixed than under a flexible exchange rate systemb. greater under a flexible than under a fixed exchange rate systemc. about the same under a fixed as under a flexible exchange rate systemd. is unrelated to the type of exchange rate system7. Which of the following statements is correct with respect to flexible exchange rates?a. they insulate the domestic economy from external shocks much more than fixed exchange ratesb. they are particularly attractive to nations subject to large external shocksc. they provide less stability to an open economy subject to large internal shocks*d. all of the above8. The formation of an optimum currency area is more likely to be beneficial:a. the smaller is the mobility of resource among the various nations of the optimum currency areab. the smaller are the structural similarities of member nations*c. the more willing are member nations to closely coordinate their fiscal, monetary, and other policiesd. all of the above9. The European Monetary System is or resembles a:*a. fixed exchange rate systemb. a managed exchange rate systemc. a crawling peg systemd. a freely flexible exchange rate system10. The European Monetary Union:a. has a common currencyb. has a single central bankc. conducts a common monetary policy*d. all of the above11. If the band of allowed fluctuation under a fixed exchange rate system is made very wide, the system will resemble:*a. a flexible exchange rate systemb. the gold standardc. an adjustable pegd. a crawling peg12. A fixed exchange rate system without a band of allowed fluctuation would require the nation's monetary authorities to intervene in the foreign exchange market:a. neverb. seldom*c. constantlyd. we cannot say13. The policy of changing par values by small preannounced amounts at frequent intervals until the equilibrium exchange rate is reached is called:*a. crawling pegb. adjustable pegc. managed floatd. dirty float14. The policy of intervention in the foreign exchange market to smooth out short-run fluctuations in exchange rates is called:a. crawling pegb. adjustable peg*c. leaning against the windd. managed float15. International macroeconomic policy coordination has become more useful and essential in recent decades because:a. the interdependence among countries has increasedb. the volume of trade has grown more rapidly than GNPc. of the large increase in international capital flows*d. all of the above。
国际经济学第九版英文课后答案
CHAPTER 1*(Core Chapter)INTRODUCTIONOUTLINE1.1 Importance of International EconomicsCase Study 1-1: The Dell and Other PCs Sold in the United States Are All ButAmericanCase Study 1-2: What Is an "American" Car?1.2 International Trade and The Nation's Standard of LivingCase Study 1-3: Rising Importance of International Trade to the United States 1.3 The Major U.S. Trade Partners: The Gravity Model1.4 The Subject Matter of International Economics1.5 Purpose of International Economic Theories and Policies1.6 Current International Economic Challenges1.7 The Globalization Challenge1.8 Organization and Methodology of the BookAppendix: A1.1 Basic International Trade DataA1.2 Sources of Additional International Data and InformationKey TermsInterdependence Adjustment in the balance of payments Gravity model MicroeconomicsInternational trade theory MacroeconomicsInternational trade policy Open economy macroeconomicsNew protectionism International financeForeign exchange markets GlobalizationBalance of payments Anti-globalization movementLecture Guide1. As the first chapter of the book, the general aim here is simply to define the fieldof study of international economics and its importance in today's interdependent world.The material in this chapter can be covered in two classes. I would utilize oneclass to cover Sections 1 to 4 and the second class to cover Sections 5 to 8. Iwould spend most of the second class on Section 6 on the major currentinternational economic challenges facing the United States and the world todayand to show how international economics can suggest ways to solve them. Thisshould greatly enhance students' motivation.Answer to Problems1. a) International economic problems reported in our daily newspapers are likely toinclude:•trade controversies between the United States, Europe, Japan, and China;•great volatility of exchange rates;•Increasing international competition from China and fear of job losses in the United States and other advanced countries.•structural unemployment and slow growth in Europe, and stagnation in Japan;•financial crises in emerging market economies;•restructuring problems of transition economies;•deep poverty in many developing nations in the world.b) Can result in trade restrictions or even a trade war, which reduce the volumeand the gains from trade;•discourage foreign trade and investments, and thus reduce the benefits from trade;•Can result in trade restrictions or even a trade war, which reduce the volume and the gains from trade;•reduces European and Japanese imports and the volume and the benefits from trade;•financial crises in emerging market economies could spread to the United States;•can lead to political instability, which will adversely affect the United States;•can lead to political instability in these countries - which also adversely affect the United States.c) Can result in your paying higher prices for imported products;•lead to great fluctuations in the price of imported products and cost of foreign travel;•Can lead higher prices for imported products and increases the chances that you will have to change jobs;•can lead you to support demands for trade protection in the United States;•can reduce the value of your investments (such as a stocks) in the United States;•can lead to your paying higher taxes for the United States to respond to these threats;•can result in your paying higher taxes to help these nations.2. a) Five industrial nations not mentioned are: Italy, France, Canada, Austria, andIreland.b) See Table 1A.c) Smaller nations, such as Ireland and Austria, are more interdependent than thelarger ones. Note that interdependence was measured by the percentage of thevalue of imports and exports (line 98c and 90c, respectively in IFS) to GDP (line99b).Table 1AEconomic Interdependence asMeasured by Imports and Exports*Source: International Financial Statistics(Washington, D.C., IMF, March 2006).3. a) Five developing nations not mentioned in the text are: Brazil, Pakistan,Colombia, Nepal, and Tunisia.b) See Table 1B.c) In general, the smaller the nation, the greater is its economic interdependence.Note that interdependence was measured by the percentage of the value ofimports and exports (line 98c and 90c, respectively in IFS) to GDP (line 99b).Table 1BEconomic Interdependence asMeasured by Imports and Exports*Source: International Financial Statistics(Washington, D.C., IMF, March 2006).4. Trade between the United States and Brazil is much larger than trade between theUnited States and Argentina. Since Brazil is larger and closer than Argentina, this trade does follow the predictions of the gravity model.5. a) Mankiw’s Economics (4th., 2007) includes the following microeconomicstopics:•The market forces of demand and supply;•elasticity and its application;•the theory of consumer choice;•consumers, producers, and the efficiency of markets;•the costs of production;•firms in competitive markets;•monopoly;•oligopoly;•monopolistic competition;•markets for the factors of production;•the demand for resources;b) Just as the microeconomics parts of your principles text deal with individualconsumers and firms, and with the price of individual commodities and factors of production, so do Parts One and Two of this text deal with production andconsumption of individual nations with nations with and without trade, and withthe relative price of individual commodities and factors of production.c) Mankiw’s Economi cs (4th., 2007) includes the following microeconomics topics:measuring a nation’s income and the cost of living;•production and growth;•savings investment and the financial system;•unemployment and its natural rate;•the monetary system, growth and inflation;•money growth and inflation;•open-economy macroeconomics: basic concepts;• a macroeconomic theory of the open economy;•aggregate demand and aggregate supply;•the influence of monetary and fiscal policy on aggregate demand;•the short-run trade off between inflation and unemployment•five debates over macroeconomic policy.d) Just as the macroeconomics parts of your principles text deal with the aggregatelevel of savings, consumption, investment, and national income, the general price level, and monetary and fiscal policies, so do Parts Three and Four of this textdeal with the aggregate amount of imports, exports, the total international flow of resources, and the policies to affect these broad aggregates.6. a) Consumer demand theory predicts than when the price of a commodity rises(cet. par.), the quantity demanded of the commodity declines.When the price of imports rises to domestic consumers, the quantity demanded of exports can be expected to decline (if everything else remains constant).7. a) A government can reduce a budget deficit by reducing governmentexpenditures and/or increasing taxes.b) A nation can reduce or eliminate a balance of payments deficit by taxingimports and/or subsidizing exports, by borrowing more abroad or lending less toother nations, as well as by reducing the level of its national income.8. a) Nations usually impose restrictions on the free international flow of goods,services, and factors. Differences in language, customs, and laws also hamperthese international flows. In addition, international flows may involve receipts and payments in different currencies, which may change in value in relation to oneanother through time. This is to be contrasted with the interregional flow ofgoods, services, and factors, which face no such restrictions as tariffs and areconducted in terms of the same currency, usually in the same language, and under basically the same set of customs and laws.b) Both international and interregional economic relations involve the overcomingof space or distance. Indeed, they both arise from the problems created bydistance. This distinguishes them from the rest of economics, which abstractsfrom space and treats the economy as a single point in space, in which production, exchange, and consumption take place.9. We can deduce that nations benefit from voluntarily engaging in internationaltrade because if they did not gain or if they lost they could avoid those losses bysimply refusing to trade. Disagreement usually arises regarding the relativedistribution of the gains from specialization in production and trade, but this does not mean that each nation does not gain from trade.10. International trade results in lower prices for consumers but harms domesticproducers of products, which compete with imports. Often those domesticproducers that stand to lose a great deal from imports band together to pressurethe government to restrict imports. Since consumers are many and unorganizedand each individually stands to lose only very little from the import restrictions,governments often give in to the demands of producers and impose some importrestrictions. These topics are discussed in detail in Chapter 9.11. A nation can subsidize exports of the commodity to other nations until it drivesthe competing nation's industry out of business, after which it can raise its priceand benefit from its newly acquired monopoly power.Some economists and politicians in the United States have accused Japan of doing just that (i.e., of engaging in strategic trade and industrial policy at the expense of U.S. industries), but this is a very complex and controversial aspect of tradepolicy and will be examined in detail in Chapter 9.12. a) When the value of the U.S. dollar falls in relation to the currencies of othernations, imports become more expensive for Americans and so they wouldpurchase a smaller quantity of imports.b) When the value of the U.S. dollar falls in relation to the currencies of othernations, U.S. exports become chapter for foreigners and so they would purchase a greater quantity of U.S. exports.Multiple-Choice Questions1. Which of the following products are not produced at all in the United States?*a. Coffee, tea, cocoab. steel, copper, aluminumc. petroleum, coal, natural gasd. typewriters, computers, airplanes2. International trade is most important to the standard of living of:a. the United States*b. Switzerlandc. Germanyd. England3. Over time, the economic interdependence of nations has:*a. grownb. diminishedc. remained unchangedd. cannot say4. A rough measure of the degree of economic interdependence of a nation is given by:a. the size of the nations' populationb. the percentage of its population to its GDP*c. the percentage of a nation's imports and exports to its GDPd. all of the above5. Economic interdependence is greater for:*a. small nationsb. large nationsc. developed nationsd. developing nations6. The gravity model of international trade predicts that trade between two nations is largera. the larger the two nationsb. the closer the nationsc. the more open are the two nations*d. all of the above7. International economics deals with:a. the flow of goods, services, and payments among nationsb. policies directed at regulating the flow of goods, services, and paymentsc. the effects of policies on the welfare of the nation*d. all of the above8. International trade theory refers to:*a. the microeconomic aspects of international tradeb. the macroeconomic aspects of international tradec. open economy macroeconomics or international financed. all of the above9. Which of the following is not the subject matter of international finance?a. foreign exchange marketsb. the balance of payments*c. the basis and the gains from traded. policies to adjust balance of payments disequilibria10. Economic theory:a. seeks to explain economic eventsb. seeks to predict economic eventsc. abstracts from the many detail that surrounds an economic event*d. all of the above11. Which of the following is not an assumption generally made in the study of international economics?a. two nationsb. two commodities*c. perfect international mobility of factorsd. two factors of production12. In the study of international economics:a. international trade policies are examined before the bases for tradeb. adjustment policies are discussed before the balance of paymentsc. the case of many nations is discussed before the two-nations case*d. none of the above13. International trade is similar to interregional trade in that both must overcome: *a. distance and spaceb. trade restrictionsc. differences in currenciesd. differences in monetary systems14. The opening or expansion of international trade usually affects all members of society:a. positivelyb. negatively*c. most positively but some negativelyd. most negatively but some positively15. An increase in the dollar price of a foreign currency usually:a. benefit U.S. importers*b. benefits U.S. exportersc. benefit both U.S. importers and U.S. exportersd. harms both U.S. importers and U.S. exporters16. Which of the following statements with regard to international economics is true?a. It is a relatively new field*b. it is a relatively old fieldc. most of its contributors were not economistsd. none of the above。
国际经济学第九版英文课后答案解析第7单元
CHAPTER 7ECONOMIC GROWTH AND INTERNATIONAL TRADEOUTLINE7.1 Introduction7.2 Growth of Factors of Production7.2a Labor Growth and Capital Accumulation Over Time7.2b The Rybczynski Theorem7.3 Technical Progress7.3a Neutral, Labor-Saving, and Capital-Saving Technical Progress7.3b Technical Progress and the Nation's Production FrontierCase Study 7-1: Changes in Relative Resource Endowments of Various Countries and RegionsCase Study 7-2: Change in Capital-Labor Rations in Selected Countries7.4 Growth and Trade: The Small Country Case7.4a The Effects of Growth on Trade7.4b Illustration of Factor Growth, Trade, and Welfare7.4c Technical Progress, Trade, and WelfareCase Study 7-3: Growth of Output per Worker from Capital Deepening, Technological Change, and Improvements in Efficiency7.5 Growth and Trade: The Large-Country Case7.5a Growth and the Nation's Terms of Trade and Welfare7.5b Immiserizing Growth7.5c Illustration of Beneficial Growth and TradeCase Study 7-4: Growth, Trade, and the Giants of the Future7.6 Growth, Change in Tastes, and Trade in Both Nations7.6a Growth and Trade in Both Nations7.6b Change in Tastes and Trade in Both NationsCase Study 7-5: Change in the Revealed Comparative Advantage of Various Countries or RegionsCase Study 7-6: Growth, Trade, and Welfare in the Leading Industrial NationsAppendix: A7.1 Formal Proof of Rybczynski TheoremA7.2 Growth with Factor ImmobilityA7.3 Graphical Analysis of Hicksian Technical ProgressKey TermsComparative statics Antitrade production and consumptionDynamic analysis Neutral production and consumption Balanced growth Normal goodsRybczynski theorem Inferior goodsLabor-saving technical progress Terms-of-trade effectCapital-saving technical progress Wealth effectProtrade production and consumption Immiserizing growthLecture Guide1.This is not a core chapter and it is one of the most challenging chapters ininternational tradetheory. It is included for more advanced students and for completeness.2.If I were to cover this chapter, I would present two sections in each of threelectures.Time permitting, I would, otherwise cover Sections 1 and 2, paying special attention to theRybczynski theorem.Answer to Problems1. a) See Figure 1.b) See Figure 2c) See Figure 3.2. See Figure 4.3. a) See Figure 5.b) See Figure 6.c) See Figure 7.4. Compare Figure 5 to Figure 1.Compare Figure 6 to Figure 3. Note that the two production frontiers have the same verticalor Y intercept in Figure 6 but a different vertical or Y intercept in Figure 3.Compare Figure 7 to Figure 2. Note that the two production frontiers have the samehorizontal or X intercept in Figure 7 but a different horizontal or X intercept in Figure 2.5. See Figure 8 on page 66.6. See Figure 9.7. See Figure 10.8. See Figure 11.9. See Figure 12.10. See Figure 13 on page 67.11. See Figure 14.12. See Figure 15.13.The United States has become the most competitive economy in the worldsince the early1990’s while the data in Table 7.3 refers to the 1965-1990 period.14.The data in Table 7.4 seem to indicate that China had a comparativeadvantage in capital-intensive commodities and a comparative disadvantage in unskilled-labor intensive commodities in 1973. This was very likely due to the many trade restrictions and subsidies, which distorted the comparative advantage of China. Its truecomparative advantage became evident by 1993 after China had started to liberalize its economy.App. 1a. See Figure 16.1b. For production and consumption to actually occur at the new equilibrium point after the doubling of K in Nation 2, we must assume either than commodity X is inferior or that Nation 2 is too small to affect the relative commodity prices at which it trades.1c. Px/Py must rise (i.e., Py/Px must fall) as a result of growth only.Px/Py will fall even more with trade.1. If the supply of capital increases in Nation 1 in the production of commodity Yonly, the VMPLy curve shifts up, and w rises in both industries. Some labor shiftsto the production of Y, the output of Y rises and the output of X falls, r falls, andPx/Py is likely to rise.2. Capital investments tend to increase real wages because they raise the K/L ratio and the productivity of labor. Technical progress tends to increase K/L and real wages if it is L-saving and to reduce K/L and real wages if it is K-saving.Multiple-Choice Questions1. Dynamic factors in trade theory refer to changes in:a. factor endowmentsb. technologyc. tastes*d. all of the above2. Doubling the amount of L and K under constant returns to scale:a. doubles the output of the L-intensive commodityb. doubles the output of the K-intensive commodityc. leaves the shape of the production frontier unchanged*d. all of the above.3. Doubling only the amount of L available under constant returns to scale:a. less than doubles the output of the L-intensive commodity*b. more than doubles the output of the L-intensive commodityc. doubles the output of the K-intensive commodityd. leaves the output of the K-intensive commodity unchanged4. The Rybczynski theorem postulates that doubling L at constant relative commodity prices:a. doubles the output of the L-intensive commodity*b. reduces the output of the K-intensive commodityc. increases the output of both commoditiesd. any of the above5. Doubling L is likely to:a. increases the relative price of the L-intensive commodityb. reduces the relative price of the K-intensive commodity*c. reduces the relative price of the L-intensive commodityd. any of the above6.Technical progress that increases the productivity of L proportionatelymore than theproductivity of K is called:*a. capital savingb. labor savingc. neutrald. any of the above7. A 50 percent productivity increase in the production of commodity Y:a. increases the output of commodity Y by 50 percentb. does not affect the output of Xc. shifts the production frontier in the Y direction only*d. any of the above8. Doubling L with trade in a small L-abundant nation:*a. reduces the nation's social welfareb. reduces the nation's terms of tradec. reduces the volume of traded. all of the above9. Doubling L with trade in a large L-abundant nation:a. reduces the nation's social welfareb. reduces the nation's terms of tradec. reduces the volume of trade*d. all of the above10.If, at unchanged terms of trade, a nation wants to trade more aftergrowth, then thenation's terms of trade can be expected to:*a. deteriorateb. improvec. remain unchangedd. any of the above11. A proportionately greater increase in the nation's supply of labor than ofcapital is likelyto result in a deterioration in the nation's terms of trade if the nation exports:a. the K-intensive commodity*b. the L-intensive commodityc. either commodityd. both commodities12. Technical progress in the nation's export commodity:*a. may reduce the nation's welfareb. will reduce the nation's welfarec. will increase the nation's welfared. leaves the nation's welfare unchanged13. Doubling K with trade in a large L-abundant nation:a. increases the nation's welfareb. improves the nation's terms of tradec. reduces the volume of trade*d. all of the above14. An increase in tastes for the import commodity in both nations:a. reduces the volume of trade*b. increases the volume of tradec. leaves the volume of trade unchangedd. any of the above15. An increase in tastes of the import commodity of Nation A and export in B:*a. will reduce the terms of trade of Nation Ab. will increase the terms of trade of Nation Ac. will reduce the terms of trade of Nation Bd. any of the aboveADDITIONAL ESSAYS AND PROBLEMS FOR PART ONE1.Assume that both the United States and Germany produce beef andcomputer chips with the following costs:United States Germany(dollars) (marks)Unit cost of beef (B) 2 8Unit cost of computer chips (C) 1 2a) What is the opportunity cost of beef (B) and computer chips (C) in each country?b)In which commodity does the United States have a comparativecost advantage?What about Germany?c)What is the range for mutually beneficial trade between the UnitedStates and Germany for each computer chip traded?d)How much would the United States and Germany gain if 1 unit ofbeef is exchanged for 3 chips?Ans. a) In the United States:the opportunity cost of one unit of beef is 2 chips;the opportunity cost of one chip is 1/2 unit of beef.In Germany:the opportunity cost of one unit of beef is 4 chips;the opportunity cost of one chip is 1/4 unit of beef.b) The United States has a comparative cost advantage in beef with respect to Germany, while Germany has a comparative cost advantage in computer chips.c)The range for mutually beneficial trade between the United Statesand Germany for each unit of beef that the United States exports is2C < 1B < 4Cd) Both the United States and Germany would gain 1 chip for each unit of beef traded.2.Given: (1) two nations (1 and 2) which have the same technology butdifferent factor endowments and tastes, (2) two commodities (X and Y) produced under increasing costs conditions, and (3) no transportation costs, tariffs, or other obstructions to trade. Prove geometrically that mutually advantageous trade between the two nations is possible.Note: Your answer should show the autarky (no-trade) and free-trade points of production and consumption for each nation, the gains from trade of each nation, and express the equilibrium condition that should prevail when trade stops expanding.)Ans.: See Figure 1 on page 74.Nations 1 and 2 have different production possibilities curves and different community indifference maps. With these, they will usually endup with different relative commodity prices in autarky, thus making mutually beneficial trade possible.In the figure, Nation 1 produces and consumes at point A and Px/Py=P A in autarky,while Nation 2 produces and consumes at point A' and Px/Py=P A'. Since P A < P A',Nation 1 has a comparative advantage in X and Nation 2 in Y. Specialization inproduction proceeds until point B in Nation 1 and point B' in Nation 2, at which P B=P B' and the quantity supplied for export of each commodity exactly equals the quantity demanded for import. Thus, Nation 1 starts at point A in production and consumption in autarky, moves to point B in production, and by exchanging BC of X for CE of Y reaches point E in consumption. E > A since it involves more of both X and Y and lies on a higher community indifference curve. Nation 2 starts at A' in production and consumption in autarky, moves to point B' in production, and by exchanging B'C' of Y for C'E' of X reaches point E'in consumption (which exceeds A').At Px/Py=P B=P B', Nation 1 wants to export BC of X for CE of Y, while Nation 2 wants to export B'C' (=CE) of Y for C'E' (=BC) of X. Thus, P B=P B' is the equilibrium relative commodity price because it clears both (the X and Y) markets.3.Draw a figure showing: (1) in Panel A a nation's demand and supplycurve for A traded commodity and the nation's excess supply of the commodity, (2) in Panel C the trade partner's demand and supply curve for the same traded commodity and its excess demand for the commodity, and (3) in Panel B the supply and demand for the quantity traded of the commodity, its equilibrium price, and why aprice above or below the equilibrium price will not persist. At any other price, QD QS, and P will change to P2.Ans. See Figure 2 on page 74.The equilibrium relative commodity price for commodity X (the tradedcommodityexported by Nation 1 and imported by Nation 2) is P2 and theequilibrium quantityof commodity X traded is Q2.4.a) Identify the conditions that may give rise to trade between twonations.b) What are some of the assumptions on which the Heckscher-Ohlin theory is based?c) What does this theory say about the pattern of trade and effect of trade on factor prices?Ans. a) Trade can be based on a difference in factor endowments, technology, or tastes between two nations. A difference either in factor endowments or technology results in a different production possibilities frontier for each nation, which, unless neutralized by a difference in tastes, leads to a difference in relative commodity price and mutually beneficial trade. If two nations face increasing costs and have identical production possibilities frontiers but different tastes, there will also be a difference in relative commodity prices and the basis for mutually beneficial trade between the two nations. The difference in relative commodity prices is then translated into a difference in absolute commodity prices between the two nations, which is the immediate cause of trade.b) The Heckscher-Ohlin theory (sometimes referred to as the modern theory – asopposed to the classical theory - of international trade) assumes that nations have the same tastes, use the same technology, face constant returns to scale (i.e., a given percentage increase in all inputs increases output by the same percentage) but differ widely in factor endowments. It also says that in the face of identical tastes or demand conditions, this difference in factor endowments will result in a difference in relative factor prices between nations, which in turn leads to a difference in relative commodity prices and trade. Thus, in the Heckscher-Ohlin theory, the international difference in supply conditions alone determines the pattern of trade. To be noted is that the two nations need not be identical in other respects in order for international trade to be based primarily on the difference in their factor endowments.c) The Heckscher-Ohlin theorem postulates that each nation will export the commodity intensive in its relatively abundant and cheap factor and import the commodity intensive in its relatively scarce and expensive factor. As an important corollary, it adds that under highly restrictive assumptions, trade will completely eliminate the pretrade relative and absolute differences in the price of homogeneous factors among nations. Under less restrictive and more usual conditions, however, trade will reduce, but not eliminate, the pretrade differences in relative and absolute f actor prices among nations. In any event, the Heckscher-Ohlin theory does say something very useful on how trade affects factor prices and the distribution of income in each nation. Classical economists were practically silent on this point.5. consumers demand more of commodity X (the L-intensive commodity)and less of commodity Y (the K- intensive commodity). Suppose that Nation 1 is India, commodity X is textiles, and commodity Y is food. Starting from the no-trade equilibrium position and using the Heckscher-Ohlin model, trace the effect of this change in tastes on India's(a) relative commodity prices and demand for food and textiles,(b) production of both commodities and factor prices, and(c) comparative advantage and volume of trade.(d) Do you expect international trade to lead to the completeequalization of relative commodity and factor prices between India and the United States? Why?Ans. a. The change in tastes can be visualized by a shift toward the textile axis in India's indifference map in such a way that an indifference curve is tangent to the steeper segment ofIndia's production frontier (because of increasing opportunity costs) after the increase in demand for textiles. This will causethe pretrade relative commodity price of textiles to rise in India.b. The increase in the relative price of textiles will lead domestic producers in India to shift labor and capital from the production of food to the production of textiles. Since textiles are L-intensive in relation to food, the demand for labor and therefore the wage rate will rise in India. At thesame time, as the demand for food falls, the demand for and thus the price of capital will fall. With labor becoming relative more expensive, producers in India will substitute capital for labor in the production of both textiles and food.Even with the rise in relative wages and in the relative price of textiles, India still remains the L-abundant and low-wage nation with respect to a nation such as the United States. However, the pretrade difference in the relative price of textiles between India and the United States is nowsomewhat smaller than before the change in tastes in India. As a result the volume of trade required to equalize relative commodity prices and hence factor prices is smaller than before. That is, India need now export a smaller quantity of textiles and import less food than before for the relative price of textiles in India and the United States to be equalized.Similarly, the gap between real wages and between India and the United States is now smaller and can be more quickly and easily closed (i.e., with a smaller volume of trade).c. Since many of the assumptions required for the completeequalization of relative commodity and factor pricesdo not hold in the real world, great differences can be expected and do in fact remain between real wages inIndia and the United States. Nevertheless, trade would tend to reduce these differences, and the H-O model does identify the forces that must be considered to analyze the effect of trade on the differences in the relative and absolutecommodity and factor prices between India and the United States.5.(a) Explain why the Heckscher-Ohlin trade model needs to beextended.(b) Indicate in what important ways the Heckscher-Ohlin trade modelcan be extended.(c) Explain what is meant by differentiated products and intra-industry trade.Ans. (a) The Heckscher-Ohlin trade model needs to be extended because, while generally correct, it fails to explain a significant portion of international trade, particularly the trade in manufactured products among industrial nations.(b)The international trade left unexplained by the basic Heckscher-Ohlin trade mode can be explained by(1) economies of scale,(2) intra-industry trade, and(3) trade based on imitation gaps and product differentiation.(c)Differentiated products refer to similar, but not identical, products(such as cars,typewriters, cigarettes, soaps, and so on) produced by the same industry or broadproduct group. Intra-industry trade refers to the international trade in differentiatedproducts.。
国际经济学第九版英文课后答案 第19单元
CHAPTER 19PRICES AND OUTPUT IN AN OPEN ECONOMY:AGGREGATE DEMAND AND AGGREGATE SUPPLY OUTLINE19.1 Introduction19.2 Aggregate Demand, Aggregate Supply, and Equilibrium in a Closed Economy19.2a Aggregate Demand in a Closed Economy19.2b Aggregate Supply in the Long Run and in the Short Run19.2c Short-Run and Long-Run Equilibrium in a Closed EconomyCase Study 19-1: Deviations of Short-Run Outputs from the Natural Level in the U.S.19.3 Aggregate Demand in an Open Economy Under Fixed and Flexible Exchange Rates19.3a Aggregate Demand in an Open Economy Under Fixed Exchange Rates19.3b Aggregate demand in an Open Economy Under Flexible Exchange Rates19.4 Effect of Economic Shocks and Macroeconomic Policies on Aggregate Demandin Open Economies with Flexible Prices19.4a Real-Sector Shocks and Aggregate Demand19.4b Monetary Shocks and Aggregate Demand19.4c Fiscal and Monetary Policies and Aggregate Demand in Open Economies19.5 Effect of Fiscal and Monetary Policies in Open Economies with Flexible PricesCase Study 19.2: Central Bank Independence and Inflation in Industrial Countries19.6 Macroeconomic Policies to Stimulate Growth and to Adjust to Supply Shocks19.6a Economic Policies for Growth19.6b Economic Policies to Adjust to Supply ShocksCase Study 19.3: Petroleum Shocks and Stagflation in the United StatesCase Study 19.4: Actual and Natural Unemployment Rate, and Inflation in United StatesCase Study 19.5: Actual and Natural Unemployment Rate, and Inflation in United StatesCase Study 19.6: Has the U.S. Economy Become Recession Proof? Key TermsAggregate demand curve (AD)Aggregate supply curve (AS)Long-run aggregate supply curve (LRAS)Natural level of output (YN)Short-run aggregate supply curve (SRAS)Expected pricesStagflationLecture Guide1. This is not a core chapter and I would omit it in a one-semester undergraduate course in international economics.2. If I were to cover this chapter, I would cover two sections in each of three lectures and assign the end-of-chapter problems.Answer to Problems1. See Figure 1.2. See Figure 2.3. See Figure 3.4. See Figure 4.5. An unexpected increase in prices in the face of sticky wages means that real wages temporarily fall. This leads firms to hire more workers and thus increase output in the short run. In the long-run, however, money wages fully adjust to (i.e., increase in the same proportion as) the increasein prices. As a result, real wages return to their previous higher level, firms reduce employment to their original lower level, and the nation's output returns to its lower long-runnatural level, but at the new higher price level.6. Starting from point C in Figure 19-3, an unexpected decrease in aggregate demand from AD' to AD causes prices to fall and firms to temporarily reduce their output, giving the new short-run equilibrium point where the AD' curve intersects the SRAS' curve. In the long run, however, as expected prices fall to match actual prices, the short-run aggregate supply curve shifts down by the amount of the price reduction (i.e., from SRAS' to SRAS) and defines new long- run equilibrium point E at the natural level of output YN, but lower price level of PE.Another way of saying this is that at point to the left of the LRAS curve, actual prices are lower than expected prices. Expected prices then fall and this shifts the SRAS curve downward until expected prices are equal to the lower actual prices, and the economy returns to its long-run natural level of output equilibrium.7. An unexpected decrease in aggregate demand causes prices to fall. If wages are sticky and do not immediately fall in the same proportion as the fall in prices, real wages will temporarily increase. This leads firms to hire fewer workers and thus reduce output in the short run. In the long-run, however, money wages fully adjust to (i.e., fall in the same proportion as) the fall in prices. As a result, real wages return to their previous lower level, firms increase employment to their original higher level, and the nation's output returns to its higher long-run or naturallevel, but at the new higher lower level.8. If the LM' curve intersected the IS' curve at a point below the BP' curve in the left panel of Figure 19-5, the interest rate in the nation would be lower than required for balance of payments equilibrium. The nation would then have a deficit in its balance of payments. Under a fixed exchange rate system, the deficit in the nation's balance of payments would result in an outflow of international reserves and thus a reduction in the nation's money supply, which would shift up the LM' curve sufficiently to intersect the IS' curve on the BP' curve, so that the nationwould be simultaneously in equilibrium in the goods and money markets and in the balance of payments, as at point E".9. See Figure 5.10. Starting from equilibrium in the goods and services sector, in the monetary sector, and in the balance of payments, an autonomous worsening of the nation's trade balance at unchanged domestic prices, causes the IS and BP curves to shift to the left and opens a deficit in the nation's balance of payments under fixed exchange rates. This leads to a leftward shift of the LM curve and a reduction in national income. Thus, the nation's aggregate demand curve shifts to the left.11. With flexible exchange rates, the autonomous worsening of the nation's trade balance at unchanged domestic prices, causes the IS and BP curves to shift to the left (just as in the case of fixed rates). Now, however, the tendency of the nation's balance of payments to go into deficit leads to a depreciation of the nation's currency and a deterioration in the nation's trade balance, so that the BP and IS curves shift to the left, back to their original position along the unchanged LM curve. Thus, the nation returns to the original equilibrium position and point on its original aggregate demand curve.12. Expansionary fiscal policy under fixed exchange rates or easy monetary policy under flexible rates can correct a recession but only the expense of higher prices or inflation. If prices are flexible downward in the nation, however, the recession can be corrected automatically and in a relatively short time by falling domestic prices, which would stimulate the domestic and foreign demand for the nation's goods and services. If domestic prices are sticky or not too flexible downward, however, relying on market force (i.e., falling prices in the nation) to automatically correct the recession may take too long, and this may justify the use of expansionary fiscal or monetary policies.13. The nation would reach the long-run equilibrium point where the AD' curve crosses the unchanged LRAS curve. The SRAS curve would also shift and cross the LRAS curve at the same point. The nation's natural level of output and employment would then be the same as before the supply (petroleum) shock, but prices would be higher.14. The concept of the natural rate of unemployment is useful as long as no structural changes take place in the economy. When structural changes do occur (and globalization may just be such a structural change), then the rate of natural unemployment will change. With globalization the natural rate of unemployment may well be 5 percent or lower in the United States today.Multiple-Choice Questions1. In general, as the economy expends or contracts over the business cycle *a. prices changeb. prices remain unchanged except in a recessionc. prices remain unchanged until the economy reaches full employmentd. all of the above2. The aggregate demand curve (AD) for closed economy is derived from thea. IS curveb. LM curvec. FE curve*d. IS and LM curves3. A reduction in the general price level with a constant money supply is shown by aa. leftward shift in the LM curve*b. movement down along a given aggregate demand curvec. rightward shift in the aggregate supply curved. a rightward shift in the IS curve4. An increase in the money supply with constant prices leads to aa. leftward shift in the LM curveb. movement along a given aggregate demand curve*c. rightward shift in the aggregate demand curved. rightward shift in the IS curve5. An increase in government expenditures leads toa. a rightward shift in the IS curveb. a rightward shift in the AD curvec. an increase in the level of national income*d. all of the above6. A nation's output in the short-run cana. exceed its natural levelb. fall short of its natural levelc. equal to its natural level*d. any of the above7. Which of the following statements is false?a. a nations' natural level of output can increase as a result of growthb. imperfection in product markets can lead to temporary deviations in a nation's output from its long-run natural level*c. sticky wages cannot lead to temporary deviations in a nation's outputfrom its long-run natural leveld. none of the above.8. Output in the short run exceeds the natural level of output if expected prices*a. exceed actual pricesb. are lower than actual pricesc. are equal to actual pricesd. any of the above9. The aggregate demand curve (AD) for an open economy is derived from thea. IS curveb. LM curvec. BP curve*d. all of the above10. The aggregate demand curve for an open economy under fixed exchange rates isa. less elastic than if the economy were closed*b. more elastic than in the economy were closedc. more elastic than in the economy operated with flexible exchange ratesd. all of the above11. An autonomous improvement in the nation's trade balance under fixed exchange rates will cause the nation's aggregate demand curve to*a. shift to the rightb. shift to the leftc. remain unchangedd. any of the above12. An autonomous short-term capital outflow under flexible exchange rates causes the nation's aggregate demand curve to*a. shift to the rightb. shift to the leftc. remain unchangedd. any of the above13. With high short-term international capital flows, fixed exchange rates, and flexible pricesa. monetary policy is effective*b. fiscal policy is effectivec. both fiscal and monetary policies are effectived. neither fiscal policy nor monetary policies are effective14. Which of the following statements is false?a. expansionary fiscal or monetary policy can increase the nation's outputtemporarily above its natural levelb. expansionary fiscal or monetary policy can used to correct a recession but only at the expense of higher prices in the nation*c. a recession cannot be eliminated automatically even if domestic prices are flexible downwardd. when prices are not flexible downward inflation may be less costly that recession15. Which of the following statements is false with regard to the effect of macroeconomic policies?a. they generally cause shifts in the aggregate demand curveb. they can possibly increase long-run growthc. they can help correct supply shocks that increases production costs but only at the expense of even higher inflation*d. they always cause shifts in the long-run aggregate supply curve。
(完整word版)国际经济学第九版英文课后答案 第7单元
CHAPTER 7ECONOMIC GROWTH AND INTERNATIONAL TRADEOUTLINE7.1 Introduction7.2 Growth of Factors of Production7.2a Labor Growth and Capital Accumulation Over Time7.2b The Rybczynski Theorem7.3 Technical Progress7.3a Neutral, Labor-Saving, and Capital-Saving Technical Progress7.3b Technical Progress and the Nation's Production FrontierCase Study 7-1: Changes in Relative Resource Endowments of Various Countries and Regions Case Study 7-2: Change in Capital-Labor Rations in Selected Countries7.4 Growth and Trade: The Small Country Case7.4a The Effects of Growth on Trade7.4b Illustration of Factor Growth, Trade, and Welfare7.4c Technical Progress, Trade, and WelfareCase Study 7-3: Growth of Output per Worker from Capital Deepening, TechnologicalChange, and Improvements in Efficiency7.5 Growth and Trade: The Large-Country Case7.5a Growth and the Nation's Terms of Trade and Welfare7.5b Immiserizing Growth7.5c Illustration of Beneficial Growth and TradeCase Study 7-4: Growth, Trade, and the Giants of the Future7.6 Growth, Change in Tastes, and Trade in Both Nations7.6a Growth and Trade in Both Nations7.6b Change in Tastes and Trade in Both NationsCase Study 7-5: Change in the Revealed Comparative Advantage of Various Countries or RegionsCase Study 7-6: Growth, Trade, and Welfare in the Leading Industrial NationsAppendix: A7.1 Formal Proof of Rybczynski TheoremA7.2 Growth with Factor ImmobilityA7.3 Graphical Analysis of Hicksian Technical ProgressKey TermsComparative statics Antitrade production and consumptionDynamic analysis Neutral production and consumptionBalanced growth Normal goodsRybczynski theorem Inferior goodsLabor-saving technical progress Terms-of-trade effectCapital-saving technical progress Wealth effectProtrade production and consumption Immiserizing growthLecture Guide1.This is not a core chapter and it is one of the most challenging chapters in international tradetheory. It is included for more advanced students and for completeness.2.If I were to cover this chapter, I would present two sections in each of three lectures.Time permitting, I would, otherwise cover Sections 1 and 2, paying special attention to the Rybczynski theorem.Answer to Problems1. a) See Figure 1.b) See Figure 2c) See Figure 3.2. See Figure 4.3. a) See Figure 5.b) See Figure 6.c) See Figure 7.4. Compare Figure 5 to Figure 1.Compare Figure 6 to Figure 3. Note that the two production frontiers have the same vertical or Y intercept in Figure 6 but a different vertical or Y intercept in Figure 3.Compare Figure 7 to Figure 2. Note that the two production frontiers have the samehorizontal or X intercept in Figure 7 but a different horizontal or X intercept in Figure 2.5. See Figure 8 on page 66.6. See Figure 9.7. See Figure 10.8. See Figure 11.9. See Figure 12.10. See Figure 13 on page 67.11. See Figure 14.12. See Figure 15.13.The United States has become the most competitive economy in the world since the early1990’s while the data in Table 7.3 refers to the 1965-1990 period.14.The data in Table 7.4 seem to indicate that China had a comparative advantage incapital-intensive commodities and a comparative disadvantage in unskilled-labor intensive commodities in 1973. This was very likely due to the many trade restrictions and subsidies, which distorted the comparative advantage of China.Its true comparative advantage became evident by 1993 after China had started to liberalize its economy.App. 1a. See Figure 16.1b. For production and consumption to actually occur at the newequilibrium point after the doubling of K in Nation 2, we mustassume either than commodity X is inferior or that Nation 2 is toosmall to affect the relative commodity prices at which it trades.1c. Px/Py must rise (i.e., Py/Px must fall) as a result of growth only.Px/Py will fall even more with trade.1. If the supply of capital increases in Nation 1 in the production of commodity Yonly, the VMPLy curve shifts up, and w rises in both industries. Some labor shifts to the production of Y, the output of Y rises and the output of X falls, r falls, and Px/Py is likely to rise.2. Capital investments tend to increase real wages because they raise the K/L ratioand the productivity of labor. Technical progress tends to increase K/L and realwages if it is L-saving and to reduce K/L and real wages if it is K-saving. Multiple-Choice Questions1. Dynamic factors in trade theory refer to changes in:a. factor endowmentsb. technologyc. tastes*d. all of the above2. Doubling the amount of L and K under constant returns to scale:a. doubles the output of the L-intensive commodityb. doubles the output of the K-intensive commodityc. leaves the shape of the production frontier unchanged*d. all of the above.3. Doubling only the amount of L available under constant returns to scale:a. less than doubles the output of the L-intensive commodity*b. more than doubles the output of the L-intensive commodityc. doubles the output of the K-intensive commodityd. leaves the output of the K-intensive commodity unchanged4. The Rybczynski theorem postulates that doubling L at constant relative commodity prices:a. doubles the output of the L-intensive commodity*b. reduces the output of the K-intensive commodityc. increases the output of both commoditiesd. any of the above5. Doubling L is likely to:a. increases the relative price of the L-intensive commodityb. reduces the relative price of the K-intensive commodity*c. reduces the relative price of the L-intensive commodityd. any of the above6.Technical progress that increases the productivity of L proportionately more than the productivity of K is called:*a. capital savingb. labor savingc. neutrald. any of the above7. A 50 percent productivity increase in the production of commodity Y:a. increases the output of commodity Y by 50 percentb. does not affect the output of Xc. shifts the production frontier in the Y direction only*d. any of the above8. Doubling L with trade in a small L-abundant nation:*a. reduces the nation's social welfareb. reduces the nation's terms of tradec. reduces the volume of traded. all of the above9. Doubling L with trade in a large L-abundant nation:a. reduces the nation's social welfareb. reduces the nation's terms of tradec. reduces the volume of trade*d. all of the above10.If, at unchanged terms of trade, a nation wants to trade more after growth, then the nation's terms of trade can be expected to:*a. deteriorateb. improvec. remain unchangedd. any of the above11. A proportionately greater increase in the nation's supply of labor than of capital is likely to result in a deterioration in the nation's terms of trade if the nation exports:a. the K-intensive commodity*b. the L-intensive commodityc. either commodityd. both commodities12. Technical progress in the nation's export commodity:*a. may reduce the nation's welfareb. will reduce the nation's welfarec. will increase the nation's welfared. leaves the nation's welfare unchanged13. Doubling K with trade in a large L-abundant nation:a. increases the nation's welfareb. improves the nation's terms of tradec. reduces the volume of trade*d. all of the above14. An increase in tastes for the import commodity in both nations:a. reduces the volume of trade*b. increases the volume of tradec. leaves the volume of trade unchangedd. any of the above15. An increase in tastes of the import commodity of Nation A and export in B:*a. will reduce the terms of trade of Nation Ab. will increase the terms of trade of Nation Ac. will reduce the terms of trade of Nation Bd. any of the aboveADDITIONAL ESSAYS AND PROBLEMS FOR PART ONE1.Assume that both the United States and Germany produce beef and computer chipswith the following costs:United States Germany(dollars) (marks)Unit cost of beef (B) 2 8Unit cost of computer chips (C) 1 2a) What is the opportunity cost of beef (B) and computer chips (C) in each country?b)In which commodity does the United States have a comparative cost advantage?What about Germany?c)What is the range for mutually beneficial trade between the United States andGermany for each computer chip traded?d)How much would the United States and Germany gain if 1 unit of beef isexchanged for 3 chips?Ans. a) In the United States:the opportunity cost of one unit of beef is 2 chips;the opportunity cost of one chip is 1/2 unit of beef.In Germany:the opportunity cost of one unit of beef is 4 chips;the opportunity cost of one chip is 1/4 unit of beef.b) The United States has a comparative cost advantage in beef with respect toGermany, while Germany has a comparative cost advantage in computer chips.c)The range for mutually beneficial trade between the United States and Germanyfor each unit of beef that the United States exports is2C < 1B < 4Cd) Both the United States and Germany would gain 1 chip for each unit of beeftraded.2.Given: (1) two nations (1 and 2) which have the same technology but differentfactor endowments and tastes, (2) two commodities (X and Y) produced under increasing costs conditions, and (3) no transportation costs, tariffs, or other obstructions to trade. Prove geometrically that mutually advantageous trade between the two nations is possible.Note: Your answer should show the autarky (no-trade) and free-trade points of production and consumption for each nation, the gains from trade of each nation,and express the equilibrium condition that should prevail when trade stops expanding.)Ans.: See Figure 1 on page 74.Nations 1 and 2 have different production possibilities curves and different community indifference maps. With these, they will usually end up with different relative commodity prices in autarky, thus making mutually beneficial trade possible.In the figure, Nation 1 produces and consumes at point A and Px/Py=P A in autarky, while Nation 2 produces and consumes at point A' and Px/Py=P A'. Since P A < P A',Nation 1 has a comparative advantage in X and Nation 2 in Y. Specialization inproduction proceeds until point B in Nation 1 and point B' in Nation 2, at which P B=P B' and the quantity supplied for export of each commodity exactly equals the quantity demanded for import. Thus, Nation 1 starts at point A in production and consumption in autarky, moves to point B in production, and by exchanging BC of X for CE of Y reaches point E in consumption. E > A since it involves more of both X and Y and lies on a higher community indifference curve. Nation 2 starts at A' in production and consumption in autarky, moves to point B' in production, and by exchanging B'C' of Y for C'E' of X reaches point E'in consumption (which exceeds A').At Px/Py=P B=P B', Nation 1 wants to export BC of X for CE of Y, while Nation 2 wants to export B'C' (=CE) of Y for C'E' (=BC) of X. Thus, P B=P B'is the equilibrium relative commodity price because it clears both (the X and Y) markets.3.Draw a figure showing: (1) in Panel A a nation's demand and supply curve for Atraded commodity and the nation's excess supply of the commodity, (2) in Panel C the trade partner's demand and supply curve for the same traded commodity and its excess demand for the commodity, and (3) in Panel B the supply and demand for the quantity traded of the commodity, its equilibrium price, and why a price above or below the equilibrium price will not persist. At any other price, QD QS, and P will change to P2.Ans. See Figure 2 on page 74.The equilibrium relative commodity price for commodity X (the traded commodityexported by Nation 1 and imported by Nation 2) is P2 and the equilibrium quantityof commodity X traded is Q2.4.a) Identify the conditions that may give rise to trade between two nations.b) What are some of the assumptions on which the Heckscher-Ohlin theory isbased?c) What does this theory say about the pattern of trade and effect of trade on factorprices?Ans. a) Trade can be based on a difference in factor endowments, technology, or tastes between two nations. A difference either in factor endowments or technology results in a different production possibilities frontier for each nation, which, unless neutralized by a difference in tastes, leads to a difference in relative commodity price and mutually beneficial trade. If two nations face increasing costs and have identical production possibilities frontiers but different tastes, there will also be a difference in relative commodity prices and the basis for mutually beneficial trade between the two nations. The difference in relative commodity prices is then translated into a difference in absolute commodity prices between the two nations, which is the immediate cause of trade.b) The Heckscher-Ohlin theory (sometimes referred to as the modern theory – asopposed to the classical theory - of international trade) assumes that nations have the same tastes, use the same technology, face constant returns to scale (i.e., a given percentage increase in all inputs increases output by the same percentage) but differ widely in factor endowments. It also says that in the face of identical tastes or demand conditions, this difference in factor endowments will result in a difference in relative factor prices between nations, which in turn leads to a difference in relative commodity prices and trade. Thus, in the Heckscher-Ohlin theory, the international difference in supply conditions alone determines the pattern of trade. To be noted is that the two nations need not be identical in other respects in order for international trade to be based primarily on the difference in their factor endowments.c) The Heckscher-Ohlin theorem postulates that each nation will export thecommodity intensive in its relatively abundant and cheap factor and import the commodity intensive in its relatively scarce and expensive factor. As an important corollary, it adds that under highly restrictive assumptions, trade will completely eliminate the pretrade relative and absolute differences in the price of homogeneous factors among nations. Under less restrictive and more usual conditions, however, trade will reduce, but not eliminate, the pretrade differences in relative and absolute factor prices among nations. In any event, the Heckscher-Ohlin theory does say something very useful on how trade affects factor prices and the distribution of income in each nation. Classical economists were practically silent on this point.5. consumers demand more of commodity X (the L-intensive commodity) and less ofcommodity Y (the K- intensive commodity). Suppose that Nation 1 is India, commodity X is textiles, and commodity Y is food. Starting from the no-trade equilibrium position and using the Heckscher-Ohlin model, trace the effect of this change in tastes on India's(a) relative commodity prices and demand for food and textiles,(b) production of both commodities and factor prices, and(c) comparative advantage and volume of trade.(d) Do you expect international trade to lead to the complete equalization ofrelative commodity and factor prices between India and the United States?Why?Ans. a. The change in tastes can be visualized by a shift toward the textile axis in India's indifference map in such a way that an indifference curve is tangentto the steeper segment of India's production frontier (because of increasingopportunity costs) after the increase in demand for textiles. This will causethe pretrade relative commodity price of textiles to rise in India.b. The increase in the relative price of textiles will lead domesticproducers in India to shift labor and capital from the production of food tothe production of textiles. Since textiles are L-intensive in relation to food,the demand for labor and therefore the wage rate will rise in India. At thesame time, as the demand for food falls, the demand for and thus the priceof capital will fall. With labor becoming relative more expensive,producers in India will substitute capital for labor in the production of bothtextiles and food.Even with the rise in relative wages and in the relative price of textiles,India still remains the L-abundant and low-wage nation with respect to anation such as the United States. However, the pretrade difference in therelative price of textiles between India and the United States is nowsomewhat smaller than before the change in tastes in India. As a result thevolume of trade required to equalize relative commodity prices and hencefactor prices is smaller than before. That is, India need now export asmaller quantity of textiles and import less food than before for therelative price of textiles in India and the United States to be equalized.Similarly, the gap between real wages and between India and the UnitedStates is now smaller and can be more quickly and easily closed (i.e., witha smaller volume of trade).c. Since many of the assumptions required for the complete equalization ofrelative commodity and factor prices do not hold in the real world, greatdifferences can be expected and do in fact remain between real wages inIndia and the United States. Nevertheless, trade would tend to reduce thesedifferences, and the H-O model does identify the forces that must beconsidered to analyze the effect of trade on the differences in the relative andabsolute commodity and factor prices between India and the United States.5.(a) Explain why the Heckscher-Ohlin trade model needs to be extended.(b) Indicate in what important ways the Heckscher-Ohlin trade model can beextended.(c) Explain what is meant by differentiated products and intra-industry trade.Ans. (a) The Heckscher-Ohlin trade model needs to be extended because, while generally correct, it fails to explain a significant portion of international trade, particularly the trade in manufactured products among industrial nations.(b)The international trade left unexplained by the basic Heckscher-Ohlin trade modecan be explained by(1) economies of scale,(2) intra-industry trade, and(3) trade based on imitation gaps and product differentiation.(c)Differentiated products refer to similar, but not identical, products (such as cars,typewriters, cigarettes, soaps, and so on) produced by the same industry or broad product group. Intra-industry trade refers to the international trade in differentiated products.。
国际经济学第九版英文课后答案 第8单元
*CHAPTER 8 (Core Chapter)TRADE RESTRICTIONS: TARIFFSOUTLINE8.1 Introduction8.2 Partial Equilibrium Analysis of a TariffCase Study 8-1: Average Tariff on Non-Agricultural Products in Major Developed CountriesCase Study 8-2: Average Tariff on Non-Agricultural Products in Some MajorDeveloping Countries8.2a Partial Equilibrium Effects of a Tariff8.2b Effects of a Tariff on Producer and Consumer Surplus8.2c Costs and Benefits of a TariffCase Study 8-3: The Welfare Effects of Liberalizing Trade in Some U.S. Products Case Study 8-4: The Welfare Effects of Liberalizing Trade in Some EU Products 8.3 The Theory of Tariff Structure8.3a The Rate of Effective Protection8.3b Generalization and Evaluation of the Theory of Effective ProtectionCase Study 8-5: Rising Tariff Rates with Degree of Domestic ProcessingCase Study 8-6: Structure of Tariffs on Industrial Products in U.S., EU, Japan, and Canada8.4 General Equilibrium Analysis of a Tariff in a Small Country8.4a General Equilibrium Effects of a Tariff in a Small Country8.4b Illustration of the Effects of a Tariff in a Small Country8.4c The Stolper-Samuelson Theorem8.5 General Equilibrium Analysis of a Tariff in a Large Country8.5a General Equilibrium Effects of a Tariff in a Large Country8.5b Illustration of the Effects of a Tariff in a Large Country8.6 The Optimum Tariff8.6a The Meaning of the Concept and Retaliation8.6b Illustration of the Optimum Tariff and RetaliationAppendix: A8.1 Partial Equilibrium Effects of a Tariff in a Large NationA8.2 Derivation of the Formula for the Rate of Effective ProtectionA8.3 The Stolper-Samuelson Theorem GraphicallyA8.4 Exception to the Stolper-Samuelson Theorem - The MetzlerParadoxA8.5 Short-run Effect of a Tariff on Factors' IncomeA8.6 Measurement of the Optimum TariffKey TermsTrade or commercial policies Consumer surplusImport tariff Rent or producer surplusExport tariff Protection cost or deadweight loss of a tariff Ad valorem tariff Nominal tariffSpecific tariff Rate of effective protectionCompound tariff Domestic value addedConsumption effect of a tariff Prohibitive tariffProduction effect of a tariff Stolper-Samuelson theoremTrade effect of a tariff Metzler paradoxRevenue effect of a tariff Optimum tariffLecture Guide1.I would cover sections 1 and 2 and assign problems 1-2 in the first lecture. Themost difficult part of section 2 is the meaning and measurement of consumer and producer surplus. Since a clear understanding of the meaning and measurementof consumer and producer surplus is crucial in evaluating the effect of tariffs, Iwould explain t hese concepts very carefully.2.I would then cover section 3 and assign problems 3-6 in the second lecture. Thetheory of tariff structure is also very difficult and important, and so I would alsoexplain this concept very carefully. I found that the best way to explain it is byusing the simple example used in the text of the suit with and without importedinputs.3.The rest of the chapter can be skipped without loss of continuity by thoseInstructors who do not wish to cover the general equilibrium effects of tariffs. 4.For those Instructors who wish to cover the rest of the chapter, I would take upanother two lectures to do so. I would also assign and grade problems 8-14 tomake sure that students understand the material.5.In covering section 8.4, I would pay special attention to the explanation of Figure8-5 and to the Stolper-Samuelson theorem.6.In covering Section 8.6, please note that the optimum tariff can only be discussedintuitively without trade indifference curves (examined in Appendix A8.6). Answer to Problems1.a) Consumption is 70Y, production is 10Y and imports are 60Y (see Figure 1 onthe next page).b) Consumption is 60Y, production is 20Y and imports are 40Y (see Figure 1).c) The consumption effect is -10Y, the production effect is +10Y, the trade effectis -20Y and the revenue effect is $40 (see Figure 1).2. a) The consumer surplus is $245 without and $l80 with the tariff (see Figure 1).b)Of the increase in the revenue of producers with the tariff (as compared withtheir revenues under free trade), $l5 represents the increase in production costsand another $15 represents the increase in rent or producer surplus (see Figure1).c) The dollar value or the protection cost of the tariff is $l0 (see Figure 1).3. This will increase the rate of effective protection in the nation.4. a) g = 0.4 - (0.5)(0.4) = 0.4 - 0.2 = 0.2 = 40%1.0 - 0.5 0.5 0.55. a) g=60%b) g=80%c) g=0d) g=20%6. a) g=70%b) See the first paragraph of section 8.3b.7. See Figure 2.8.When Nation 1 (assumed to be a small nation) imposes an import tariff oncommodity Y, the real income of labor falls and that of capital rises.9.Py/Px rises for domestic producers and consumers. As production of Y (the K-intensive commodity) rises and that of X falls, the demand and income of K rises and that of L falls. Therefore, r rises and w falls.10.If Nation 1 were instead a large nation, then Nation 1's terms of trade rise and thereal income of L may also rise.India is more likely to restrict imports of K-intensive commodities in which India has a comparative disadvantage and this is likely to increase the return to capitaland reduce the return to labor according to the Stolper-Samuelson theorem.12. See Figure 3 on the previous page.13. See Figure 4.14. a) The volume of trade may shrink to zero (the origin of offer curves).App. 1. The more elastic S H and S F are, the lower is the free trade priceof the commodity and the lower is the increase in the domesticprice of the commodity as a result of the tariff.App. 2a. The supply curve of the nation for the commodity shifts upand to the left (as with the imposition of any tax); this does not affectthe consumption of the commodity with free trade, but it reducesdomestic production and increases imports of the commodity; italso increases the revenue effect and reduces producers' surplus.b)The imposition of a tariff on imported inputs going into the domestic productionof the commodity will have no effect on the size of the protection cost ordeadweight loss.App. 3. See Figure 5 (on the next page).App. 4. See Figure 6.App. 5. Real w will fall in terms of Y and rise in terms of X. On theother hand, r eal r will rise in terms of Y and fall in terms of X. Thiscan be seen by drawing a figure similar to Figure 8-10, but with theVMPLy curve shifting upward.App. 6a. See Figure 7.c) After Nation 1 has imposed an optimum tariff and Nation 2 has retaliatedwith an optimum tariff of its own, the approximate terms of trade for Nation1 is 0.8, while the approximate terms of trade of Nation2 is 1.25.d) Nation 1's welfare declines from the reduction in the volume and in the termsof trade. Although nation 2's terms of trade are higher than under free trade,the volume of trade has shrunk so much that nation 2's welfare is also likelyto be lower than under free trade.Multiple-choice Questions1. Which of the following statements is incorrect?a. An ad valorem tariff is expressed as a percentage of the value of the traded commodityb. a specific tariff is expressed as a fixed sum of the value of the traded commodity.c. export tariffs are prohibited by the U.S. Constitution*d. The U.S. uses exclusively the specific tariff2. A small nation is one:a. which does not affect world price by its tradingb. which faces an infinitely elastic world supply curve for its import commodityc. whose consumers will pay a price that exceeds the world price by the amount of the tariff*d. all of the above3. If a small nation increases the tariff on its import commodity, its:a. consumption of the commodity increasesb. production of the commodity decreasesc. imports of the commodity increase*d. none of the above4.The increase in producer surplus when a small nation imposes a tariff is measured bythe area:*a. to the left of the supply curve between the commodity price with and without the tariffb. under the supply curve between the quantity produced with and without the tariffc. under the demand curve between the commodity price with and without the tariffd. none of the above.5. If a small nation increases the tariff on its import commodity:*a. the rent of domestic producers of the commodity increasesb. the protection cost of the tariff decreasesc. the deadweight loss decreasesd. all of the above6.Which of the following statements is incorrect with respect to the rate of effectiveprotection?a. for given values of ai and ti, g is larger the greater is tb. for a given value of t and ti, g is larger the greater is a ic. g exceeds, is equal to or is smaller than t, as t i is smaller than, is equal to or is larger than t*d. when a i t i exceeds t, the rate of effective protection is positive7. With a i=50%, t i=0, and t=20%, g is:*a. 40%b. 20%c. 80%d. 08. The imposition of an import tariff by a small nation:*a. increases the relative price of the import commodity for domestic producers and consumersb. reduces the relative price of the import commodity for domestic producers and consumersc. increases the relative price of the import commodity for the nation as a wholed. any of the above is possible9. The imposition of an import tariff by a small nation:a. increases the nation's welfare*b. reduces the nation's welfarec. leaves the nation's welfare unchangedd. any of the above is possible10. According to the Stolper-Samuelson theorem, the imposition of a tariff by a nation:a. increases the real return of the nation's abundant factor*b. increases the real return of the nation's scarce factorc. reduces the real return of the nation's scarce factord. any of the above is possible11. The imposition of an import tariff by a nation results in:a. an increase in relative price of the nation's import commodityb. an increase in the nation's production of its importable commodityc. reduces the real return of the nation's abundant factor*d. all of the above12. The imposition of an import tariff by a nation can be represented by a rotation of the: *a. nation's offer curve away from the axis measuring the commodity of its comparative advantageb. the nation's offer curve toward the axis measuring the commodity of its comparative advantagec. the other nation's offer curve toward the axis measuring the commodity of its comparative advantaged. the other nation's offer curve away from the axis measuring the commodity of its comparative advantage13. The imposition of an import tariff by a large nation:a. increases the nation's terms of tradeb. reduces the volume of tradec. may increase or reduce the nation's welfare*d. all of the above14. The imposition of an optimum tariff by a large nation:a. improves its terms of tradeb. reduces the volume of tradec. increases the nation's welfare*d. all of the above15. The optimum tariff for a small nation is:a. 100%b. 50%*c. 0d. depends on elasticities。
国际经济学第九版英文课后答案 第二单元
CHAPTER 2*(Core Chapter)THE LAW OF COMPARATIVE ADVANTAGEOUTLINE2.1 Introduction2.2 The Mercantilists' Views on TradeCase Study 2-1: Munn's Mercantilistic Views on TradeCase Study 2-2: Mercantilism Is Alive and Well in the Twenty-first Century2.3 Trade Based on Absolute Advantage: Adam Smith2.3a Absolute Advantage2.3b Illustration of Absolute Advantage2.4 Trade Based on Comparative Advantage: David Ricardo2.4a The Law of Comparative Advantage2.4b The Gains from Trade2.4c Exception to the Law of Comparative Advantage2.4d Comparative Advantage with MoneyCase Study 2-3: The Petition of the Candlemaker2.5 Comparative Advantage with Opportunity Costs2.5a Comparative Advantage and the Labor Theory of Value2.5b The Opportunity Cost Theory2.5c The Production Possibility Frontier Under Constant Costs2.5d Opportunity Costs and Relative Commodity Prices2.6 The Basis and the Gains from Trade Under Constant Costs2.6a Illustration of the Gains from Trade2.6b Relative Commodity Prices with Trade2.7 Empirical Tests of the Ricardian ModelCase Study 2-4: Relative Unit Labor Costs and Relative Exports –United States and JapanAppendix: A2.1 Comparative Advantage with More than Two CommoditiesA2.2 Comparative Advantage with More than Two NationsKey TermsBasis for trade Labor theory of valueGains from trade Opportunity cost theoryPattern of trade Production possibility frontier Mercantilism Constant opportunity costAbsolute advantage Relative commodity pricesLaissez-faire Complete specializationLaw of comparative advantage Small country caseLecture Guide1.This is a long and crucial core chapter and may require four classes to cover aadequately. In the first lecture, I would present Sections 1, 2, and 3. These are short s sections and set the stage for the crucial law of comparative advantage.2.In the second lecture of Chapter 2, I would concentrate on Section 4 and carefullyexplain the law of comparative advantage using simple numerical examples as in the text. The crucial parts here are 4b (which explains the law) and 4d (which establishes the link between trade theory and international finance). I find that the numerical explanations before the graphical analysis really helps the student to truly understand the law. The simple lawyer-secretary example should also render the law more immediately relevant to the student. I would also assign Problems 1-6.3.In the third lecture, I would cover Sections 2.5 and 2.6a. I would pay particularattention to Sections 2.5c, 2.5d, and 2.6, which are the heart of the chapter.4.In the fourth lecture, I would cover the remainder of the chapter. The crucial sectionhere is 2.6b and the most difficult concept to explain is the shape of the combined supply curve for wheat and cloth. The appendixes could be made optional for the more enterprising students in the class. I would also assign Problems 7-13. Answer to Problems1.In case A, the United States has an absolute advantage in wheat and the UnitedKingdom in cloth.In case B, the United States has an absolute advantage (so that the United Kingdom has an absolute disadvantage) in both commodities.In case C, the United States has an absolute advantage in wheat but has neither an absolute advantage nor disadvantage in cloth.In case D, the United States has an absolute advantage over the United Kingdom in both commodities.2.In case A, the United States has a comparative advantage in wheat and the UnitedKingdom in cloth.In case B, the United States has a comparative advantage in wheat and the United Kingdom in cloth.In case C, the United States has a comparative advantage in wheat and the United Kingdom in cloth.In case D, the United States and the United Kingdom have a comparative advantage in neither commodities.3.In case A, trade is possible based on absolute advantage.In case B, trade is possible based on comparative advantage.In case C, trade is possible based on comparative advantage.In case D, no trade is possible because the absolute advantage that the United States has over the United Kingdom is the same in both commodities.4. a) The United States gains 1C.b) The United Kingdom gains 4C.c) 3C < 4W < 8C.d) The United States would gain 3C while the United Kingdom would gain 2C.5)a) The cost in terms of labor content of producing wheat is 1/4 in the United States aand 1 in the United Kingdom, while the cost in terms of labor content ofproducing cloth is 1/3 in the United States and 1/2 in the United Kingdom.b) In the United States, Pw=$1.50 and Pc=$2.00.c) In the United Kingdom, Pw=£1.00 and Pc=£0.50.6)a) With the exchange rate of £1=$2, Pw=2.00 and Pc=$1.00 in the UnitedKingdom, so that the United States would be able to export wheat to the United Kingdom and the United Kingdom would be able to export cloth to the United States.b) With the exchange rate of £1=$4, Pw=$4.00 and Pc=$2.00 in the UnitedKingdom, so that the United States would be able to export wheat to the UnitedKingdom, but the United Kingdom would be unable to export any cloth to theUnited States.c) With £1=$1, Pw=$1.00 and Pc=$0.50 in the United Kingdom, so that the UnitedKingdom would be able to export both commodities to the United States.d) $1.50 < £1.00 < $4.00.7. a) See Figure 1.b) In the United States Pw/Pc=3/4, while in the United Kingdom, Pw/Pc=2.c) In the United States Pc/Pw=4/3, while in the United Kingdom Pc/Pw=1/2.8. See Figure 2.The autarky points are A and A' in the United States and the United Kingdom, respectively. The points of production with trade are B and B' in the United States and the United Kingdom, respectively. The points of consumption are E and E' in the United States and the United Kingdom, respectively. The gains from trade are shown by E > A for the U.S. and E' > A' for the U.K.9. a) If D W(US+UK)shifted up in Figure 2.3, the equilibrium relative commodity priceof wheat would also rise by 1/3 to P W/P C=4/3. Since the higher D W(US+UK)would still intersect the vertical portion of the S W(US+UK)curve, the United States would continue to specialize completely in the production of wheat and produce 180W, while the United kingdom would continue to specialize completely in the production of cloth and produce 120C.b) Since the equilibrium relative commodity price of cloth is the inverse of therelative commodity price of wheat, if the latter rises to 4/3, then the former falls to ¾.. This means that D C(UK+US) shifts down by 1/3 in the right panel of Figure 2.3.10.If D W(US+UK)intersected S W(US+UK)at P W/P C=2/3 and 120W in the left panel ofFigure 2.3, this would mean that the United States would not be specializing completely in the production of wheat.The United Kingdom, on the other hand, would be specializing completely in the production of cloth and exchanging 20C for 30W with the United States. Since the United Kingdom trades at U.S. the pre-trade relative commodity price of P W/P C=2/3 in the United States, the United Kingdom receives all of the gains from trade.11. See Figure 3 on page 15 and the discussion in the last paragraph of Section 2.6b inthe text.12. a) The Ricardian model was tested empirically by showing the positive correlationbetween relative productivities and the ratio of U.S.to U.K. exports to third countries and by the negative correlation between relative unit labor costs and relative exportsb) The Ricardian trade model was confirmed by the positive relationship foundbetween the relative labor productivity and the ratio of U.S. to U.K. exports to third countries, as well as by the negative relationship between relative unit labor costs and relative exports.c) Even though the Ricardian model was more or less empirically confirmed westill need other models because the former assumes rather than explains comparative advantage (i.e, it does not explain the reason for the different labor productivities in different nations) and cannot say much regarding the effect of international trade on the earnings of factors of production.d) The United States has a comparative disadvantage in the production of textiles.Restricting textile imports would keep U.S. workers from eventually moving into industries in which the United States has a comparative advantage and in which wages are higher.Answer to Problem in Appendix 2The numbers in the following table refer to the cost or price of commodities X, Y, and Z in nations A, B, and C in terms of the same currency. Thus, nation A exports commodity X to nations B and C; nation B exports commodity Y to nations A and C; nation C exports commodity Z to nations A and B.Multiple-Choice Questions1. The Mercantilists did not advocate:*a.free tradeb. stimulating the nation's exportsc. restricting the nations' importsd. the accumulation of gold by the nation2. According to Adam Smith, international trade was based on:*a. absolute advantageb. comparative advantagec. both absolute and comparative advantaged. neither absolute nor comparative advantage3. What proportion of international trade is based on absolute advantage?a. Allb. most*c. somed. none4. The commodity in which the nation has the smallest absolute disadvantage is the commodity of its:a. absolute disadvantageb. absolute advantagec. comparative disadvantage*d. comparative advantage5. If in a two-nation (A and B), two-commodity (X and Y) world, it is established that nation A has a comparative advantage in commodity X, then nation B must have:a. an absolute advantage in commodity Yb. an absolute disadvantage in commodity Yc. a comparative disadvantage in commodity Y*d. a comparative advantage in commodity Y6. If with one hour of labor time nation A can produce either 3X or 3Y while nation B can produce either 1X or 3Y (and labor is the only input):a. nation A has a comparative disadvantage in commodity Xb. nation B has a comparative disadvantage in commodity Y*c. nation A has a comparative advantage in commodity Xd. nation A has a comparative advantage in neither commodity7. With reference to the statement in Question 6:a Px/Py=1 in nation Ab. Px/Py=3 in nation Bc. Py/Px=1/3 in nation B*d. all of the above8. With reference to the statement in Question 6, if 3X is exchanged for 3Y:a. nation A gains 2X*b. nation B gains 6Yc. nation A gains 3Yd. nation B gains 3Y9. With reference to the statement of Question 6, the range of mutually beneficial trade between nation A and B is:a 3Y < 3X < 5Yb. 5Y < 3X < 9Y*c 3Y < 3X < 9Yd. 1Y < 3X < 3Y10. If domestically 3X=3Y in nation A, while 1X=1Y domestically in nation B:a. there will be no trade between the two nationsb. the relative price of X is the same in both nationsc. the relative price of Y is the same in both nations*d. all of the above11. Ricardo explained the law of comparative advantage on the basis of:*a. the labor theory of valueb. the opportunity cost theoryc. the law of diminishing returnsd. all of the above12. Which of the following statements is true?a. The combined demand for each commodity by the two nations is negatively slopedb. the combined supply for each commodity by the two nations is rising stepwisec. the equilibrium relative commodity price for each commodity with trade is given by the intersection of the demand and supply of each commodity by the two nations *d. all of the above13. A difference in relative commodity prices between two nations can be based upon a difference in:a. factor endowmentsb. technologyc. tastes*d. all of the above14. In the trade between a small and a large nation:a. the large nation is likely to receive all of the gains from trade*b. the small nation is likely to receive all of the gains from tradec. the gains from trade are likely to be equally sharedd. we cannot say15. The Ricardian trade model has been empirically*a. verifiedb. rejectedc. not testedd. tested but the results were inconclusive。
国际经济学第九版英文课后答案第10单元
国际经济学第九版英文课后答案第10单元CHAPTER 10ECONOMIC INTEGRATION: CUSTOMS UNIONS AND FREE TRADE AREAS OUTLINE10.1 Introduction10.2 Trade-Creating Customs Unions10.2a Trade Creation10.2b Illustration of a Trade-Creating Customs Union10.3 Trade-Diverting Customs Unions10.3a Trade Diversion10.3b Illustration of a Trade-Diverting Customs Union10.4 The Theory of the Second Best and Other Static Welfare Effects10.4a The Theory of the Second Best10.4b Conditions More Likely to Lead to Increased Welfare10.4c Other Static Welfare Effects of Customs Unions10.5 Dynamic Benefits of Customs Unions*10.6 History of Attempts at Economic Integration10.6a The European UnionCase Study 10-1: Economic Profile of the EU, NAFTA, and JapanCase Study 10-2: Gains from the Single EU Market10.6b The European Free Trade Association10.6c The North American and Other Free Trade AgreementsCase Study 10-3: Mexico's Gains from NAFTA – Expectations and Outcome10.6d Attempts at Economic Integration Among Developing NationsCase Study 10-4: Economic Profile of MercosurCase Study 10-5: Changes in Trade Patterns with Economic Integration 344A10.6e Economic Integration in Central, Eastern Europe & Former Soviet RepublicsCase Study 10-6: Per Capita Income of Transition Economies Appendix: A10.1 General Equilibrium Analysis of Static Effects of a Trade-Diverting Customs UnionA10.2 Regional Trade Agreements Around the WorldKey TermsEconomic integration Variable import leviesPreferential trade arrangements European Free Trade Association (EFTA) (6920811.d oc) 10-1 Dominick Salvatore Free-trade area Trade deflectionCustoms union North American Free Trade Agreement (NAFTA) Common market Southern Common Market (Mercosur) Economic union Council of Mutual Economic Assistance (CMEA) Duty-free zones State trading companiesTrade creation Bilateral agreementsTrade diversion Bulk purchasingTrade-diverting customs union Central and Eastern European Countries (CEEC) Theory of the second best New Independent States (NIS)Tariff factories Commonwealth of Independent States (CIS) European Union (EU) Central European Free Trade Association (CEFTA)Baltic States Free Trade Area (BAFTA)Lecture Guide:1. This is not a core chapter and I would skip it except for section 6. Section 6 is animportant section and can be regarded as an extension ofChapter 9, which is a corechapter. Section 6 deals with a very important set of current events.2. Section 6 is a long section and may require two classes to be adequately presented. Iwould cover subsections a-d in one class and subsection e as well as both case studies in the second class. Case Studies 10-1 to 10-6 can be used for a very stimulating classdiscussion.3. While section 6 can be presented without covering the material in sections 1-5, someterms discussed in sections 1-5 (such as trade creation and trade diversion) need to bedefined.4. In a one-year course in international economics, I would cover the entire chapter. I wouldthen cover sections 10-1 to 10-3 in one class and sections 10-4 and 10-5 in the secondclass. In the first class, the most important aspect would be the presentation and clearexplanation of Figures 10-1 and 10-2.Answers to Problems:1. If Nation A imposes a 100 percent ad valorem tariff on imports of commodity X fromNation B and Nation C, Nation A will produce commodity X domestically because thedomestic price of commodity X is $10 as compared with the tariff-inclusive price of$16 if Nation A imported commodity X from Nation B and $12 if Nation A importedcommodity X from nation C.2. a) If Nation A forms a customs union with Nation B, NationA will import commodity (6920811.d oc) 10-2 Dominick SalvatoreX from Nation B at the price of $8 instead of producing it itself at $10 or importing itfrom Nation C at the tariff-inclusive price of $12.b) When Nation A forms a customs union with Nation B this would be a trade-creatingcustoms union because it replaces domestic production of commodity X at Px=$10with tariff-free imports of commodity X from Nation B at Px=$8.3. If Nation A imposes a 50 percent ad valorem tariff on imports of commodity X fromNation B and Nation C, Nation A will import commodity X from nation C at the tariff- inclusive price of $9 instead of producing commodity X itself or importing it fromNation B at the tariff-inclusive price of $12.4. a) If Nation A forms a customs union with Nation B, NationA will import commodityX from Nation B at the price of $8 instead of importing it from Nation C at the tariff-inclusive price of $9.b) When Nation A forms a customs union with Nation B this would be a trade-divertingcustoms union because it replaces lower-price imports of commodity X of $6 (fromthe point of view of Nation A as a whole) with higher priced imports of commodityX from Nation B at $8.Specifically, Nation A's importers do not import commodity X from Nation Cbecause the tariff-inclusive price of commodity X from Nation C is $9 as comparedwith the no-tariff price of $8 for imports of commodity X from Nation B. However,since the government of Nation A collects the $3 tariff per unit on imports ofcommodity X from Nation C, the net effective price for imports of commodity Xfrom Nation C is really $6 for Nation A as a whole.5. See Figure 10-1 in the text. Any figure similar to Figure 10-1 in the text would do.6. The welfare gains that Nation 2 receives from joining Nation 1 to form a customs unionis given by the sum of the areas of triangles CJM and BHN in Figure 10-1 in the text.Any similar figure and sum of corresponding triangles would, of course, be adequate.7. See Figure 10-2 in the text. Any figure similar to Figure 10-2 in the text would do.8. The welfare loss that Nation 2 receives from joining Nation 1 to form a customs unionis given by C'JJ'+B'HH'- MNH'J'=$11.25 in Figure 10-2 in the text.Any similar figure and sum of corresponding triangles minus the area of corresponding rectangle would, of course, be adequate.9. See Figure 1 and compare it to Figure 10-2.10. The net gain from the trade-diverting customs unionshown in Figure 1 is given byC'JJ'+B'HH'-MJ'H'N. As contrasted with the case in Figure 10-2, however, the sum (6920811.d oc) 10-3 Dominick Salvatore of the areas of the two triangles (measuring gains) is greater than the area the rectangle (measuring the loss). Thus, the nation would now gain from the formation of a custom union. Had we drawn the figure on graph paper, we would have been able to measure the net gain in monetary terms also.11. A trade-diverting customs union is more likely to lead toa welfare gain of a membernation (1) the smaller is the relative inefficiency of nation 3 with respect to nation 1,(2) the higher is the level of the tariff, and (3) the more elastic are Dx and Sx in nation2. These can seen by comparing Figure 10-2 in the text with Figure 1 on the next page.12. See Figure 2. The formation of the customs union has no effect.13. NAFTA created much more controversy because the very low wages in Mexico led togreat fears of large job losses in the U. S.14. The possible cost to the U.S. from EU92 arose from the increased efficiency andcompetitiveness of the E.U. The benefit arose because a more rapid growth in the EU spills into a greater demand for American products, which benefits the U. S.App. Compare points B' and H' in Figure 10-3 with the corresponding points inFigure 3.Multiple-choice Questions:1. Which of the following statements is correct?*a. In a customs union, member nations apply a uniform external tariffb. in a free-trade area, member nations harmonize their monetary and fiscal policiesc. within a customs union there is unrestricted factor movementd. a customs union is a higher form of economic integration than a common market2. A customs union that allows for the free movement of labor and capital among its member nations is called a:a. preferential trade arrangementb. free-trade area*c. common marketd. all of the above3. A trade-creating customs union is one where:a. lower-cost imports from outside the customs union are replaced by higher-cost imports from a union member *b. some domestic production in a member nation is replaced by lower-cost imports from another member nationc. trade among members increases but trade with nonmembers decreasesd. trade among members decreases while trade with nonmembers increases4. A trade-diverting customs union:a. increases trade among union members and with nonmember nationsb. reduces trade among union members and with nonmember nations*c. increases trade among members but reduces trade with non-membersd. reduces trade among union members but increases it with nonmembers5. A trade-diverting customs union results in:a. trade diversion onlyb. trade creation only*c. both trade creation and trade diversiond. we cannot say6. The formation of a trade-creating customs union where all economic resources of membernations are fully employed before and after the formation of the customs union leads to an:*a. increase in the welfare of member and nonmember nationsb. increase in the welfare of member nations onlyc. increase in the welfare of nonmember nations onlyd. increase or decrease in the welfare of member and nonmember nations7. A trade-diverting customs union:a. increases the welfare of member and nonmember nationsb. reduces the welfare of member and nonmember nationsc. increases the welfare of member nations but reduces that of nonmembers*d. reduces the welfare of nonmembers and may increase or reduce that of members8. A trade-diverting customs union is more likely to lead to trade creation:a. the lower are the pre-union trade barriers of the member countries*b. the lower are the customs union's barriers on trade with the rest of the worldc. the smaller is the number of countries forming the customs union and the smaller their sized. the more complementary rather than competitive are the economies of the nations forming the customs union9. The theory of customs union is a special case of the theory of:a. effective protection*b. the second bestc. the product cycled. comparative advantage10. Which is not a dynamic benefit from the formation of a customs union?a. increased competitionb. economies of scalec. stimulus to investment*d. trade creation11. The formation of the EU resulted in:a. trade creation in industrial and agricultural productsb. trade diversion in industrial and agricultural products*c. trade creation in industrial products and trade diversion in agricultural productsd. trade diversion in industrial products and trade creation in agricultural products12. The benefit that the United States is likely to receive from NAFTA:*a. increasing competition in product and resource marketsb. greater technical innovationc. improvements in its terms of traded. all of the above13. The benefit that Mexico is likely to receive from NAFTA:a. greater export-led growthb. encouraging the return of flight capitalc. more rapid structural change*d. all of the above14. Which is a stumbling block to successful economic integration among groups ofdeveloping nations?a. benefits are not evenly distributed among nationsb. many developing nations are not willing to relinquish part of their newly-acquired sovereignty to a supranational community body, as required for successful economic integrationc. the complementary nature of their economies and competition for the same world markets for their agricultural exports*d. all of the above15. The formation of a free trade area among the countries of Eastern Europe is advocatedin order to:a. restore trade trading*b. retain the traditional trade links that can be justified on market principlesc. reduce the need for structural changed. none of the above。
国际经济学第九版英文课后答案 第12单元
CHAPTER 12INTERNATIONAL RESOURCE MOVEMENTS ANDMULTINATIONAL CORPORATIONSOUTLINE12.1 Introduction12.2 Some Data on International Capital FlowsCase Study 12-1: Fluctuation of Foreign Direct Investment Flows to the United States12.3 Motives for International Capital Flows12.3a Motives for International Portfolio Investments12.3b Motives for Direct Foreign Investments to the United StatesCase Study 12-2: The Stock of Foreign Direct Investments Around the World 12.4 Welfare Effects of International Capital Flows12.4a Effects on the Investing and Host Countries12.4b Other Effects on the Investing and Host Countries12.5 Multinational Corporations12.5a Reasons for the Existence of Multinational Corporations12.5b Problems Created by Multinational Corporations in the Home CountryCase Study 12-3: The World's Largest Multinational Industrial CorporationsCase Study 12-4: Employment of U.S. MNCs Abroad12.5c Problems Created by Multinational Corporations in the Host Country12.6 Motives for and Welfare Effects of International Labor Migration12.6a Motives for International Labor Migration12.6b Welfare Effects of International Labor Migration12.6c Other Welfare Effects of International Labor MigrationCase Study 12-5: British and Soviet Brain Drain Is U.S. Brain GainCase Study 12-6: U.S. Immigration and Debate Over Immigration Policy Appendix: The Transfer ProblemKey TermsPortfolio investments Vertical integrationDirect investments Multinational corporations (MNCs) Portfolio theory Transfer pricingRisk diversification Brain drainHorizontal integrationLecture Guide:This is not a core chapter and I would skip it except for section 5 on multinational corporations and section 6 on immigration. Otherwise, I would present two sections in each of three classes.Answer to Problems:1. See Figure 1.In Figure 1, the outflow of capital is shown by the leftward and upward shift of the S K curve to S'K. This increases the return on capital until it is equal to that in the host or receiving country.2. See Figure 2.In Figure 2, the outflow of capital is shown by the rightward and downward shift of the S K curve to S'K. This reduces the return on capital until it is equal to that in the investing country.3. The data to update Table 12-1 is found in the July issue of the most recent year ofthe Survey of Current Business.4. The data to update Table 12-2 is found in the July issue of the most recent year ofthe Survey of Current Business.5. The data to update Table 12-3 is found in the July issue of the most recent year ofthe Survey of Current Business.6. The data to update Table 12-4 is found in the July issue of the most recent year ofthe Survey of Current Business.7. The Statement is true.The profitability of a portfolio is equal to the weighted average of the yield of the securities included in the portfolio. Therefore, the profitability of a portfolio of many securities can never exceed the yield of the highest-yield security in the portfolio.The second part of the statement is also true if the portfolio includes securities for which yields are inversely correlated over time.8. See Figure 3. The gain of the investing country is EGR.9. See Figure 4. The gain of the host or receiving country is ERM.10. The general principle that can be deduced from the answers to the previous twoproblems and from Figure 12-1 is that the nation with the more rapidly decliningVMPK curve gains more. With the VMP K curves declining at equal rates, both nations gain equal amounts.The rate of return on U.S. direct investment in developing nations often exceeds the rate of return on investment on it investments in developed nations because of relative scarcity of capital and technology and lower wage rates in developing than in developed nations.11.U.S. labor generally opposes U.S. investments abroad because they reduce the K/Lratio and the productivity and wages of labor in the United States.An inflow of foreign capital leads to an increase in the K/L ratio and in the productivity and wages of labor or employment in developing nations.12. The data to update Table 12-6 are found in the World Investment Report publishedyearly by the United Nations for the most recent year.App. See Table 1.Source: International Financial Statistics, 1981 Yearbook.Petroleum prices refer to Saudi Arabian pricesMultiple-choice Questions:1. Portfolio investments refer primarily to:a. direct investments*b. bondsc. liquid assetsd. short-term assets2. Direct investments usually involve the transfer of:a. capitalb. technologyc. management*d. all of the above3. Which of the following is not true with regard to direct investments?a. U.S. direct investments abroad and foreign direct investments in the U.S. grew very rapidly from 1950 to 2004b. the amount of U.S. direct investments abroad is similar to the amount of foreign direct investments in the U.S.*c. U.S. direct investments in Canada are higher than in Europed. U.S. private holdings of foreign long-term securities grew very rapidly from 1950 to 20044. Two-way international capital flows can be explained by the desire to:a. earn higher yields abroadb. avoid tariffs*c. diversify risksd. all of the above5. Portfolio theory tells us that by investing in securities with yields that areinversely related over time:a. a given yield can be obtained at a smaller riskb. a higher yield can be obtained for the same level of riskc. a two-way capital flow may be required to achieve a balanced portfolio*d. all of the above6.The reason the residents of a nation do not borrow from other nations and themselvesundertake real investments in their own nation is that:*a. multinationals want to retain control over their own technologyb. banks do not want to lend to foreignersc. vertical integration is not possible for foreignersd. multinationals want to avoid horizontal integration7. Which is not a reason for private foreign direct investments?a. horizontal and vertical integrationb. to maximize profits and diversify risks*c. to stimulate developmentd. to avoid tariffs8. Which of the following is not a beneficial effect of direct investments on the investing country:*a. the transfer of technologyb. higher profitsc. risk diversificationd. avoids the possible loss of export markets9. Foreign direct investment benefits the host nation because it:a. increases the K/L rationb. increases the productivity of laborc. increases per capita income*d. all of the above10. U.S. labor generally*a. opposes U.S. investments abroadb. favors U.S. investments abroadc. is indifferent to U.S. investments abroadd. we cannot say without additional information11. Labor in developing countries generallya. opposes an inflow of foreign direct investments from abroad*b. favors an inflow of foreign direct investments from abroadc. is indifferent to foreign direct investments from abroadd. we cannot say without additional information12. Owners of capital in developing countries generally*a. oppose an inflow of foreign direct investments from abroadb. favor an inflow of foreign direct investments from abroadc. are indifferent to foreign direct investments from abroadd. we cannot say without additional information13. The basic reason for the existence of MNC is the:*a. competitive advantage of a global network of production and distribution.b. incentives provided by the investing nationc. incentives provided by the host nationd. imperfections of international capital markets14. Transfer pricing refers to:a. risk diversificationb. the pricing of the technology transferred*c. the artificial overpricing of components shipped to an affiliate in a higher tax nationd. portfolio theory15. The brain drain refers to the transfer of:a. technology from developed to developing nationsb. skilled labor and professionals from developed to developing nationsc. unskilled labor from developing to developed nations*d. skilled labor and professionals from less advanced to more advanced nations ADDITIONAL ESSAYS AND PROBLEMS FOR PART TWO1.From the following figure, in which Dc and Sc refer, respectively to the domesticdemand and supply curves of cloth, and SF and SF+T refer, respectively,to the world supply curve of cloth under free trade and with a 50%import tariff imposed by the nation on the importation of cloth,determine:(a) the consumption, production effect, and the trade effect of the tariff.(b)the reduction in consumer surplus, the increase in producer surplus orrent, the tariff revenue, and the protection cost or deadweight loss to theeconomy as a result of the tariff.Answ. (a) The consumption effect is equal to BR=-20c; the production effect is equal to GN=20C; therefore, the trade effect is equal to -(BR+GN)=-40c.(b)The reduction in consumer surplus is FJHB=$90; the increase in producersurplus is FJMG=$30; the revenue effect is NMHR=$40; the protection cost ordeadweight loss to the economy is equal to the sum of the area of trianglesGMN and BHR or $20.2.(a) Explain why and under what conditions the infant-industry argument for an importtariff is valid.(b) How must this argument be qualified?Answ. (a) The infant-industry argument for tariffs is generally valid, especially for lessdeveloped countries (LDCs). It holds that an LDC may have a potentialcomparative advantage in a particular commodity, say textiles, but that becauseits initial production costs are too high (due to lack of know-how and the initialsmall level of output), this industry cannot be established or grow in the LDC inthe face of foreign competition. An import tariff is then justified to help theLDC establish the industry and protect it during its "infancy," until the industryhas grown in size and efficiency and is able to meet foreign competition. At thattime, the tariff is to be removed.(b) In order for the infant-industry argument to be valid, not only must the tariffeventually be removed and the "grown up" industry be able to compete withforeign firms without protection, but the extra return in the industry (after theremoval of the protection) must be high enough to justify the costs involvedduring the period of protection. These costs arise because the commodity isproduced domestically rather than imported for less. It may also be difficult apriori to determine which industry or potential industry qualifies for thistreatment, and to eventually remove the tariff once it is imposed. Economistsalso agree that what a tariff can do here, a direct subsidy to the infant industrycan do better. This is because a subsidy can be varied so as to provide theinfant industry with the same degree of protection as an equivalent import tariffbut without distorting relative prices and domestic consumption. However, asubsidy requires revenue, rather than generating it as the tariff does.3. (a) How can strategic trade policy justify trade protection?(b) What difficulties arise in carrying out a strategic trade policy?Answ. (a) According to strategic trade policy, a nation can create a comparative advantagethrough temporary trade protection in such fields as semiconductors, computers,telecommunications, and other industries that are deemed crucial to futuregrowth in the nation. These high-technology industries are subject to high risks,require large scale production to achieve economies of scale and give rise toextensive external economies when successful. Strategic trade policy suggeststhat by encouraging such industries, the nation can enhance its future growthprospects. This is similar to the infant-industry argument in developing nations,except that it is advanced for industrial nations to acquire a comparativeadvantage in crucial high-technology industries. Most nations do some of this.Indeed, some economists would go so far as to say that a great deal of thepostwar industrial and technological success of Japan is due to its strategicindustrial and trade policies.(b)There are three serious difficulties in carrying out strategic trade policy. First,it is extremely difficult to pick winners (i.e., choose the industries that willprovide large external economies in the future) and devise appropriate policiesto successfully nurture them. Second, since most leading nations undertakestrategic trade policies at the same time, their efforts are largely neutralized sothat the potential benefits to each may be small. Third, when a country doesachieve substantial success with strategic trade policy, this comes at the expenseof other countries (i.e., it is a beggar-thy-neighbor policy) and so other countriesare likely to retaliate. Faced with all these practical difficulties, even supportersof strategic trade policy grudgingly acknowledge that free trade is still the bestpolicy, after all.4.(a) Why do you think that the United States supported economic integration inEurope after World War II?(b)What direct or indirect evidence can you give to conclude that U.S. support foreconomic integration in Europe did in fact result in the hope-for outcome?(c)What are the major economic disputes between the United States and Europeabout these days? What dangers do they create?Answ. (a) The United States supported economic integration in Europe to foster and Strengthen democratic systems in Europe after World War II, resist communism,and to promote peaceful coexistence among European countries, especiallyGermany and France, which were once bitter enemies.(b)Evidence that U.S. support for economic integration in Europe achieved itsgoals is provided by the fact that the members of the European Union havestrong democratic governments and economies, communist regimes havecollapsed in Eastern Europe and the Soviet Union, and Germany and Franceare so closely integrated economically that a future armed conflict betweenthem is practically nil.(c) The major economic disputes between the United States and Europe (theEuropean Union) today are about trade protection in agriculture and someservices as well as subsidies that the European Union provides to some of itsindustries, such as Airbus Industrie. These disputes could degenerate intotrade wars that would harm both the European Union and the United States.5.(a) Why did large developing nations generally follow a policy of importsubstitution as a strategy for growth during the 1950s, 1960s, and 1970s?Why was this not generally possible for small developing nations?(b) Why was the policy of import substitution generally a failure?(c) Why did developing nations that switched from a policy of importsubstitution to a policy of export promotion generally grow faster during thepast decade?Answ. (a) Large developing nations generally followed a policy of import substitution during the 1950s, 1960s, and 1960s because their large domestic marketallowed them to reap many of the benefits economies of scale in productioneven without international trade. On the other hand, small developing nationsgenerally did not have the choice of industrializing through importsubstitution because their small domestic market would have madeproduction costs unacceptably high.(b)the policy of import substitution was generally a failure even in largedeveloping nations because once protection was granted to a domesticindustry in order to encourage it establishment and growth, it becomespractically impossible to remove the protection. This led to inefficiencies andhigher costs in the developing country even for unprotected industries thatuse the output of protected industries as intermediate products or inputs intheir production processes.(c)The developing countries that switched from a policy of import substitutionto export promotion generally grew faster than those developing countriesthat did not make that switch because production for export and internationalcompetition stimulated efficiency throughout the economy and resulted indomestic prices more closely reflecting the true opportunity costs ofcommodities and inputs.6.One of the most significant international economic developments of the postwarperiod is the proliferation of multinational corporations (MNCs). These are firmsInternational Economics – 9th Edition Ins tructor’s Manual that own, control or manage production facilities in several countries. With regard toMNCs, explain(a) the reason for their existence;(b) some of the alleged problems that they create for the home country;(c) some of the alleged problems that they create for the host country.Answ. (a) The basic reason for the existence of MNCs is the competitive advantage that they have over other forms of economic organization based on economies of scale inproduction, financing, research and development (R&D), and in gathering marketinformation, resulting from a global network of production and distribution. Today,MNCs account for about 25% of world output, and the trade between then parentfirms and their foreign affiliates accounts for about one-third of world trade inmanufactured goods.(b)The most controversial of the alleged harmful effects of MNCs on the homecountry is the loss of domestic jobs resulting from foreign direct investments.However, it must be pointed out that the home country may have lost some ofthese jobs anyway to foreign competitors. A related problem stems from theexport of advanced technology. Countering this harmful effect, however, is thetendency of MNCs to concentrate their R&D in the home country. Finally, easyaccessibility of MNCs to the international capital market reduces theeffectiveness of domestic monetary policy.(c)Host countries have even more serious complaints against MNCs. First is thealleged domination by the MNC of the hosts' economy. The largest MNCs haveyearly sales greater than the GNP of all but a handful of nations. It is furtheralleged that MNCs absorb local savings and local entrepreneurial talent, useexcessive K-intensive production techniques that are inappropriate fordeveloping nations and do not train local labor. Most of these complaints are tosome extent true especially for host LDCs and have led these nations to regulateforeign direct investments in order to mitigate the harmful effects and increasethe possible benefits.(6920859.d oc) 12-11 Dominick Salvatore。
国际经济学第九版英文课后答案第3单元
国际经济学第九版英文课后答案第3单元*CHAPTER 3(Core Chapter)THE STANDARD THEORY OF INTERNATIONAL TRADE OUTLINE3.1 Introduction3.2 The Production Frontier with Increasing Costs3.2a Illustration of Increasing Costs3.2b The Marginal Rate of Transformation3.2c Reason for Increasing Opportunity Costs and Different Production Frontiers3.3 Community Indifference Curves3.3a Illustration of Community Indifference Curves3.3b The Marginal Rate of Substitution3.3c Some Difficulties with Community Indifference Curves3.4 Equilibrium in Isolation3.4a Illustration of Equilibrium in Isolation3.4b Equilibrium Relative Commodity Prices and Comparative AdvantageCase 3-1: Revealed Comparative Advantage of the United States,the European Union, and Japan3.5 The Basis for and the Gains from Trade with Increasing Costs3.5a Illustration of the Basis for and the Gains from Trade with Increasing Costs3.5b Equilibrium Relative Commodity Prices with Trade3.5c Incomplete SpecializationCase Study 3-2: Specialization and Export Concentration inSelected Countries3.5d Small Country Case with Increasing Costs3.5e The Gains from Exchange and from SpecializationCase Study 3-3: Job Losses in High U.S. Import-Competing IndustriesCase Study 3-4: International Trade and Deindustrialization in the United States,the European Union, and Japan3.6 Trade Based on Differences in TastesAPPENDIX: A3.1 Production Functions, Isoquants, Isocosts and EquilibriumA3.2 Production Theory with Two Nations, Two Commodities and Two FactorsA3.3 Derivation of the Edgeworth Box Diagram and Production FrontiersA3.4 Some Important ConclusionsKey TermsIncreasing opportunity costs Revealed comparative advantage Marginal rate of transformation (MRT) Equilibrium relative commodity price with tradeCommunity indifference curves Incomplete specialization Marginal rate of substitution (MRS) Gains from exchange Autarky Gains from specializationEquilibrium relative commodity price in isolation Deindustrialization Lecture Guide1. In the first lecture of Chapter 3, I would cover Sections 1, 2, and3. Section 2 can becovered quickly, except for 2b, which requires careful explanation because of its subsequentimportance. Careful explanation is also required for 3b. I would assign Problems 1 and 2.2. In the second lecture, I would cover Sections 4, 5a, and 5b. Thisis the basic trade modeland it is essential for the student to master it completely. To this end, I would assign andgrade Problems 3 and 4.3. In the third lecture, I would cover the remainder of the chapter.The topics here representelaborations of the basic trade model. I would assign problems 5, 6, and 7 and go overproblem 7 in class even though its answer is also in the back of the book. I would make theAppendices optional for those students in the class who have had intermediate micro theory.Answer to Problems1. a) See Figure 1.b) The slope of the transformation curve increases as the nationproduces more of X anddecreases as the nation produces more of Y. These reflect increasing opportunity costs asthe nation produces more of X or Y.2. a) See Figure 2.We have drawn community indifference curves as downward or negatively sloped becauseas the community consumes more of X it will have to give up some of Y to remain onthe same indifference curve.b)The slope measures how much of Y the nation can give up byconsuming one more unitof X and still remain at the same level of satisfaction; the slope declines because the moreof X and the less of Y the nation is left with, the less satisfaction it receives fromadditional units of X and the more satisfaction it receives from each retained unit of Y.c) III > II to the right of the intersection, while II > III to the left.This is inconsistent because an indifference curve should show a given level of satisfaction.Thus, indifference curves cannot cross.3. a) See Figure 3 on page 22.b) Nation 1 has a comparative advantage in X and Nation 2 in Y.c) If the relative commodity price line has equal slope in both nations.4. a) See Figure 4.b) Nation 1 gains by the amount by which point E is to the right andabove point A andNation 2 by the excess of E' over A'. Nation 1 gains more from trade because the relativeprice of X with trade differs more from its pretrade price than for Nation 2.5. a) See Figure 5. In Figure 5, S refers to Nation 1's supplycurve of exports of commodity X, while D refers to Nation 2's demand curve for Nation 1's exports of commodity X. D and S intersect at point E, determining the equilibrium P B=Px/Py=1 and the equilibrium quantity of exports of 60X.b) At Px/Py=1 1/2 there is an excess supply of exports of R'R=30Xand Px/Py falls towardequilibrium Px/Py=1.c) At Px/Py=1/2, there is an excess demand of exports of HH'=80X and Px/Py risestoward Px/Py=1.6. The Figure in Problem 5 is consistent with Figure 3-4 in the text.From the left panel ofFigure 3-4, we see that Nation 1 supplies no exports of commodity X at Px/Py=1/4 (pointA). This corresponds with the vertical or price intercept of Nation 1's supply curve ofexports of commodity X (point A).The left panel of Figure 3-4 also shows that at Px/Py=1, Nation 1 is willing to export 60X(point E). The same is shown by Nation 1's supply curve of exports of commodity X.The other points on Nation 1's supply curve of exports in the figure of Problem 5 can alsobe derived from the left panel of Figure 3-4, but this is shown in Chapter 4 with offercurves.Nation 2's demand curve for Nation 1's exports ofcommodity X could be derived from theright panel of Figure 3-4, as shown in Chapter 4. What is important isthat we can use theD and S figure in Problem 5 to explain why the equilibrium relative commodity price withtrade is Px/Py=1 and why the equilibrium quantity traded of commodity X is 60 units inFigure 3-4.7. See Figure 6 on page 24.The small nation will move from A to B in production, exports X in exchange for Y so asto reach point E > A.8. a) The small nation specializes in the production of commodityX only until its opportunitycost and relative price of X equals P W. This usually occurs before the small nation hasbecome completely specialized in production.b) Under constant costs, specialization is always complete for the small nation.9. a) See Figure 7.b) See Figure 8.10. If the two community indifference curves had also been identical in Problem 9 the relativecommodity prices would also have been the same in both nations in the absence of trade andno mutually beneficial trade would be possible11. If production frontiers are identical and the communityindifference curves different in thetwo nations, but we have constant opportunity costs, there would be no mutually beneficialtrade possible between the two nations12. See Figure 1113. It is true that Mexico's wages are much lower than U.S. wages (about one fifth), but laborproductivity is much higher in the United States and so labor costs are not necessarilyhigher than in Mexico. In any event, trade can still be based on comparative advantage.App. 1. See Figure 12Commodity X is the L-intensive commodity in Nation 2 (as in Nation 1) because the production contract curve bulges toward the L- axis or is everywhere to the left of the diagonal.App. 2. Since L and K are released from the production of X in a higher ratio than are absorbed in the production of Y, wages fall in Nation 2. This leads to the substitution of L for K in the production of X and Y, so that the K/L ratio falls in the production of both commodities.Multiple-Choice Questions1. A production frontier that is concave from the origin indicates that thenation incursincreasing opportunity costs in the production of:a. commodity X onlyb. commodity Y only*c. both commoditiesd. neither commodity2. The marginal rate of transformation (MRT) of X for Y refers to:a. the amount of Y that a nation must give up to produce each additional unit of Xb. the opportunity cost of Xc. the absolute slope of the production frontier at the point of production*d. all of the above3. Which of the following is not a reason for increasing opportunity costs:*a. technology differs among nationsb. factors of production are not homogeneousc. factors of production are not used in the same fixed proportion in the production of all commoditiesd. for the nation to produce more of a commodity, it must use resources that are less and less suited in the production of the commodity4. Community indifference curves:a. are negatively slopedb. are convex to the originc. should not cross*d. all of the above5. The marginal rate of substitution (MRS) of X for Y in consumption refers to the:a. amount of X that a nation must give up for one extra unit of Y and still remain on the same indifference curve*b. amount of Y that a nation must give up for one extra unit of X and still remain on the same indifference curvec. amount of X that a nation must give up for one extra unit of Y to reach a higher indifference curved. amount of Y that a nation must give up for one extra unit of X to reach a higher indifference curve6. Which of the following statements is true with respect to the MRS of X for Y?a. It is given by the absolute slope of the indifference curveb. declines as the nation moves down an indifference curvec. rises as the nation moves up an indifference curve*d. all of the above7. Which of the following statements about community indifference curves is true?a. They are entirely unrelated to individuals' community indifference curvesb. they cross, they cannot be used in the analysis*c. the problems arising from intersecting community indifference curves can be overcome by the application of the compensation principled. all of the above.8. Which of the following is not true for a nation that is in equilibrium in isolation?*a. It consumes inside its production frontierb. it reaches the highest indifference curve possible with its production frontierc. the indifference curve is tangent to the nation's production frontierd. MRT of X for Y equals MRS of X for Y, and they are equal to Px/Py9. If the internal Px/Py is lower in nation 1 than in nation 2 without trade:a. nation 1 has a comparative advantage in commodity Yb. nation 2 has a comparative advantage in commodity X*c. nation 2 has a comparative advantage in commodity Yd. none of the above10. Nation 1's share of the gains from trade will be greater:a. the greater is nation 1's demand for nation 2's exports*b. the closer Px/Py with trade settles to nation 2's pretrade Px/Pyc. the weaker is nation 2's demand for nation 1's exportsd. the closer Px/Py with trade settles to nation 1's pretrade Px/Py11. If Px/Py exceeds the equilibrium relative Px/Py with tradea. the nation exporting commodity X will want to export more of X than at equilibriumb. the nation importing commodity X will want to import less of X than at equilibriumc. Px/Py will fall toward the equilibrium Px/Py*d. all of the above12. With free trade under increasing costs:a. neither nation will specialize completely in productionb. at least one nation will consume above its production frontierc. a small nation will always gain from trade*d. all of the above13. Which of the following statements is false?a.The gains from trade can be broken down into the gains from exchange and the gains from specializationb. gains from exchange result even without specialization*c. gains from specialization result even without exchanged. none of the above14. The gains from exchange with respect to the gains fromspecialization are always:a. greaterb. smallerc. equal*d. we cannot say without additional information15. Mutually beneficial trade cannot occur if production frontiers are:a. equal but tastes are notb. different but tastes are the samec. different and tastes are also different*d. the same and tastes are also the same.。
(完整word版)国际经济学第九版英文课后答案第7单元
CHAPTER 7ECONOMIC GROWTH AND INTERNATIONAL TRADEOUTLINE7.1 Introduction7.2 Growth of Factors of Production7。
2a Labor Growth and Capital Accumulation Over Time7.2b The Rybczynski Theorem7。
3 Technical Progress7.3a Neutral， Labor—Saving, and Capital—Saving Technical Progress7.3b Technical Progress and the Nation's Production FrontierCase Study 7-1： Changes in Relative Resource Endowments of Various Countries and RegionsCase Study 7—2: Change in Capital—Labor Rations in Selected Countries7.4 Growth and Trade： The Small Country Case7.4a The Effects of Growth on Trade7。
4b Illustration of Factor Growth, Trade, and Welfare7。
4c Technical Progress， Trade, and WelfareCase Study 7—3：Growth of Output per Worker from Capital Deepening，Technological Change， and Improvements in Efficiency7。
5 Growth and Trade: The Large—Country Case7.5a Growth and the Nation's Terms of Trade and Welfare7。
国际经济学第九版英文课后答案 第6单元
CHAPTER 6ECONOMIES OF SCALE, IMPERFECT COMPETITION,AND INTERNATIONAL TRADEOUTLINE*6.1 Introduction6.2 The Heckscher-Ohlin Model and New Trade Theories*6.3 Economies of Scale and International TradeCase Study 6-1: The New International economies of Scale*6.4 Imperfect Competition and International Trade6.4a Trade Based on Product DifferentiationCase Study 6-2: U.S. Intra-Industry Trade in Automotive ProductsCase Study 6-3: Variety Gains from International Trade6.4b Measuring Intra-Industry TradeCase Study 6-4: Growth of Intra-Industry Trade6.4c Formal Model of Intra-Industry Trade6.4d Another Version of the Intra-Industry Trade Model6.5 Trade Based on Dynamic Technological Differences and Synthesis of Trade Theories6.5a The Technological Gap and Product Cycle Models6.5b Illustration of the Product Cycle ModelCase Study 6-5: The United States as the Most Competitive Economy6.6 Transportation Costs, Environmental Standards, and International Trade6.6a Transportation Costs and Nontraded CommoditiesCase Study 6-6: Transport Costs by Country Groups6.6b Transportation Costs and the Location of IndustryCase Study 6-7: The Maquiladoras: U.S. Plants Along the U.S.-Mexican Border6.6c Environmental Standards, Industry Location, and International TradeCase Study 6-8: Environmental Sustainability IndexAppendix: A6.1 External Economies and the Pattern of TradeA6.2 Dynamic External Economies and SpecializationKey TermsIncreasing returns to scale Transport or logistics costs Monopoly Nontraded goods and services Oligopoly, Outsourcing General equilibrium analysis International economies of scale Partial equilibrium analysis External economies Resource-oriented industries Differentiated products Market-oriented industriesIntra-industry trade Footloose industriesIntra-industry trade index Environmental standards Monopolistic competition Dynamic external economies Technological gap model Learning curveProduct cycle model Infant industryLecture Guide:1.Although this is not a core chapter, Sections 6.1, 6.3 and 6.4 are important ones becausethey present some of the most recent developments in international trade theory.2.I would cover sections 1, 2, and 3 in lecture 1. The material is not difficult but veryimportant. I would also assign problems 1-3.3.I would cover section 4 in lecture 2. This is the most important section in the chapter. Iwould pay very close attention to Figures 6-2 and 6-3. These require reviewing from principles of economics, the meaning of differentiated products, monopolistic competition, economies of scale, and the determination of profit maximization by the firm. I would also assign problems 4-9 problems 4-9 and go over in class problems 6-9.4. In lecture 3, I would cover sections 5 and 6 and assign problems 10-14.Answer to Problems:1. See Figure 1.2. See Figure 2.3. See Figure 3.4. a) T = 1 - /1000-1000/ = 1 - 0 = 1.1000+1000 2000b) T = 1 - /1000-750/ = 1 - 250 = 0.86.1000+750 1750c) T = 1 - /1000-500/ = 1 - 500 = 0.67.1000+500 1500d) T = 1 - /1000-250/ = 1 - 750 = 0.4.1000+250 1250e) T = 1 - /1000-0/ = 1 - 1000 = 0.1000+0 10006920748.doc) 6-3 Dominick Salvatore5. a) T = 1 - /1000-1000/ = 1 - 0 = 1.1000+1000 2000b) T = 1 - /750-1000/ = 1 - 250 = 0.86.750+1000 1750c) T = 1 - /500-1000/ = 1 - 500 = 0.67.500+1000 1500d) T = 1 - /250-1000/ = 1 - 750 = 0.4.250+1000 1250e) T = 1 - /0-1000/ = 1 - 1000 = 0.0+1000 1000Note that the results are identical to those in Problem 4 because we take the absolutevalue of exports minus imports or imports minus exports.6. See Figure 4.The AC and the MC curves in Figure 4 are the same as in Figure 6-2. However, D and the corresponding MR curve are higher on the assumption that other firms have not yet imitated this firm's product, reduced its market share, or competed this firm's profits away. In Figure 4, MR=MC at point E, so that the best level of output of the firm is 5 units and price is$4.50. Since at Q=5, AC=$3.00, the firm earns a profit of AB=$2.00 per unit and $10.00in total.7.a) Monopolistic competition resembles monopoly because under both forms of marketorganization the firm produces a product that is unique (i.e., no other firm produces an identical product).b) Monopolistic competition is different from monopoly because under monopolisticcompetition there are many other firms that produce a similar product. On the other hand, there is no close substitute for the product sold by a monopolist.Furthermore, under monopolistic competition, entry into the industry is easy. As a result,attracted by this firm's profits, more firms enter the industry to produce similarproducts. This reduces the monopolistically competitive firm's market share (i.e., itsdemand and corresponding MR curves shift down) until we get to the situationdepicted by Figure 6-2 in the text, where P=AC and our firm breaks even. On the otherhand, under monopoly, entry into the industry is blocked, so that the monopolist cancontinue to earn profits in the long run.6920748.doc) 6-4 Dominick Salvatore6920748.doc) 6-5 Dominick Salvatorec) The difference between monopoly and monopolistic competition is important forconsumer welfare because consumers get a greater variety of the commodity at a lowerprice with monopolistic competition than with monopoly.8. A perfectly competitive firm faces an infinitely elastic or horizontal demand curve. Thismeans that the firm is a price taker and can sell any quantity of the homogenous product at the price determined at the intersection of the market demand and supply curves for thecommodity.Both the demand curves faced by the monopolistic competitive firm and the monopolist are downward sloping, indicating that each can sell more units of the commodity bylowering its price. However, the demand curve facing the monopolistically competitive firm generally has a smaller inclination (i.e., it is more elastic) than the demand curve facingthe monopolist because the former sells a commodity for which many good substitute areavailable.9.If the C curve had shifted down only half as much as curve C' in Figure 6-3, the newequilibrium point would be at P=AC=$2.50 and N=350.10.See Figure 5 on the previous page.11. The increased pirating or production and sale of counterfeit American goods without payingroyalties by foreign producers shorten the U.S. product cycle or the time during which theU.S. firm can reap the benefits from the new product or technology it introduced and thusreduces the ability of U.S. firms to engage in research and development (R & D) newproduct cycles.12. See Figure 6 on the previous page.With transpo rtation costs specialization would proceed to point C in Nation 1 and point C’in Nation 2. Pc in nation 1 (the nation exporting commodity X) is smaller than Pc' in Nation2 (the country importing commodity X) by the relative cost of transporting each unit ofcommodity X from Nation 1 to Nation 2. Trade does not seem to be inequilibrium because transportation costs are expressed in terms of commodity X.13. See Figure 7 on the next page.P2 exceeds P1 by the relative cost of transporting one unit of commodity X from Nation 1 to Nation 2.14. See Figure 8.6920748.doc) 6-6 Dominick Salvatore6920748.doc) 6-7 Dominick SalvatoreApp. 1. See Figure 9.The firm's AC=AF without and BC with external economies. Thus, at agiven level of output of the firm, the firm's AC are lower (i.e., the firm's ACcurve shifts down) as cumulative industry output expands.App. 2. Parameter "a" refers to the starting AC (i.e., the AC when output or Q iszero). Parameter "b" refers to the rate of decline in AC as cumulative industry outputincreases. Thus, "b" should be negative. Furthermore, the larger the absolute valueof b, the more rapid is the decline in AC as cumulative industry expands over time. Multiple-Choice Questions:1. Relaxing the assumptions on which the Heckscher-Ohlin theory rests:a. leads to rejection of the theoryb. leaves the theory unaffected*c. requires complementary trade theoriesd. any of the above.2.Which of the following assumptions of the Heckscher-Ohlin theory, when relaxed, leavethe theory unaffected?a. Two nations, two commodities, and two factorsb. both nations use the same technologyc. the same commodity is L-intensive in both nations*d. all of the above3.Which of the following assumptions of the Heckscher-Ohlin theory, when relaxed,require new trade theories?*a. Economies of scaleb. incomplete specializationc. similar tastes in both nationsd. the existence of transportation costs4.International trade can be based on economies of scale even if both nations have identical:a. factor endowmentsb. tastesc. technology*d. all of the above6920748.doc) 6-8 Dominick Salvatore5. A great deal of international trade:a. is intra-industry tradeb. involves differentiated productsc. is based on monopolistic competition*d. all of the above6. The Heckscher-Ohlin and new trade theories explains most of the trade:a. among industrial countriesb. between developed and developing countriesc. in industrial goods*d. all of the above7.The theory that a nation exports those products for which a large domestic market exists was advanced by:*a. Linderb. Vernonc. Leontiefd. Ohlin8. Intra-industry trade takes place:a. because products are homogeneous*b. in order to take advantage of economies of scalec. because perfect competition is the prevalent form of market organizationd. all of the above9.If a nation exports twice as much of a differentiated product that it imports, its intra-industry (T) index is equal to:a. 1.00b. 0.75*c. 0.50d. 0.2510. Trade based on technological gaps is closely related to:a. the H-O theory*b. the product-cycle theoryc. Linder's theoryd. all of the above11. Which of the following statements is true with regard to the product-cycle theory?a. It depends on differences in technological changes over time among countriesb. it depends on the opening and the closing of technological gaps among countriesc. it postulates that industrial countries export more advanced products to less advanced countries *d. all of the above12. Transport costs:a. increase the price in the importing countryb. reduces the price in the exporting country*c. both of the aboved. neither a nor b.13. Transport costs can be analyzed:a. with demand and supply curvesb. production frontiersc. offer curves*d. all of the above14. The share of transport costs will fall less heavily on the nation:*a. with the more elastic demand and supply of the traded commodityb. with the less elastic demand and supply of the traded commodityc. exporting agricultural productsd. with the largest domestic market15. A footloose industry is one in which the product:a. gains weight in processingb. loses weight in processingc. both of the above*d. neither a nor b.。
国际经济学第九版英文课后答案 第11单元
CHAPTER 11INTERNATIONAL TRADE AND ECONOMIC DEVELOPMENTOUTLINE11.1 Introduction11.2 The Importance of Trade to Development11.2a Trade Theory and Economic Development11.2b Trade as an Engine of Growth11.2c. The Contributions of Trade to Development11.2d. International Trade and Endogenous Growth Theory11.3 The Terms of Trade and Economic Development11.3a The Various Terms of TradeCase Study 11-1: The East Asian Miracle of Growth and TradeCase Study 11-2: The Crisis in High-Performance Asian Economies (HPAEs)11.3b Alleged Reasons for Deterioration in the Commodity Terms of Trade11.3c Historical Movement in the Commodity and Income Terms of Trade 11.4 Export Instability and Economic Development11.4a Causes and Effects of Export InstabilityCase Study 11-3: Change in Commodity Prices Over Time11.4b Measurements of Export Instability and its Effect on Development11.4c International Commodity Agreements11.5 Import Substitution versus Export Orientation11.5a Development Through Import Substitution Versus Exports11.5b The Experience with Import SubstitutionCase Study 11-4: The Growth of Rich Countries, Globalizers and Non-Globalizers11.5c Recent Trade Liberalization and Growth in Developing CountriesCase Study 11-5: Manufactures in Total Exports of Selected DevelopingCountries11.6 Current Problems Facing Developing Countries11.6a Poverty in Developing Countries11.6b The Foreign Debt Problem of Developing CountriesCase Study 11-6: The Foreign Debt Burden of Developing Countries11.6c Trade Problems of Developing CountriesCase Study 11-7: Globalization and World PovertyAppendix: Income Inequalities by Traditional and Purchasing-Power Parity (PPP) Measures Key TermsRegions of recent settlement Buffer stocksEngine of growth Export controlsVent for surplus Purchase contractsEndogenous growth theory Import substitution industrialization (ISI) High-performanceAsian economies (HPAEs) Export-oriented industrialization Commodity, or net barter, terms of trade Foreign debtIncome terms of trade Newly industrialized economies (NIEs) Single factoral terms of trade Export pessimismDouble factoral terms of trade New International Economic order (NIEO) Export instability United Nations Conference on Trade and Marketing boards Development (UNCTAD)International commodity agreementsLecture Guide:1. This is not a core chapter and I would skip it, except for section 6.2. If I covered this chapter, I would present two sections in each of three lectures.Answer to Problems:1. International trade could retard development by:∙keeping the nation in primary production;∙leading the nation to adopt excessive capital-intensive production techniques;∙increasing the propensity to consume, thus reducing the nation's savings rate;∙leading to foreign exploitation of natural resources;2. Each of the criticisms that international trade can retard development given in theanswer to problem 1 can by countered as follows:∙As the availability of capital and technology increases, the nation can begin to export manufactured goods;∙through appropriate taxes and subsidies the nation can avoid the use of excessive capital-intensive production techniques;∙increased taxation can increase the rate of public savings;∙taxation and regulation can reduce or eliminate foreign exploitation;3. An improvement in the technology of primary production results in a shift in the nation'stransformation curve from Y1X1 to Y1X2 in Figure 1.4. An improvement in the technology of primary production is likely to lead to deteriorationin the terms of trade as the developing nation exports more primary commodities.5. A vent for surplus can be shown by a movement from point A inside the nation'sproduction frontier without trade to point A' on the higher production frontier withgrowth and trade in Figure 2 on the previous page.6. a) The nation's commodity terms of trade would be 91.7.b) The nation's income terms of trade would be 119.2.c) The nation's single factoral terms of trade would be 128.4.7. The nation of problem 6 will be better off in 2000 as compared with 1980 because itsincome and single factoral terms of trade rose.8. Figure 7-6 in the text shows how deteriorating terms of trade resulting from growth canmake a nation worse off after trade than before. This was called immiserizing growth in Chapter 7.9. Figure 3 on the previous page shows that when the supply of a commodity increases, itsequilibrium price will fall by a greater amount, the more price inelastic is the demandcurve for the commodity.10. Figure 4 on the next page shows that with a negatively inclined demand curve and apositively inclined supply curve, producers' earnings fluctuate more with a shift indemand (Panel a) than with a shift in supply (Panel b).11. Figure 5 shows how a buffer stock could either lead to an unmanageable stock of thecommodity or to the running out of the commodity. Specifically, if the buffer stockauthority sets price above the long-run equilibrium price of the commodity, it will facean unmanageable stock of the commodity. On the other hand, if the buffer stockauthority sets price below the long-run equilibrium level, then the buffer stock authority will run out of the commodity.12. A New International Economic Order (NIEO) has not been established because industrialcountries did not want to give up control over the present system and pay the economiccosts of reforming it along the lines demanded by developing countries. Theestablishment of a NIEO is no longer a hotly debated topic because developed countries faced serious problems of their own during the 1980s and early 1990s in the form of slow growth and high unemployment. The NIEO was replaced by concerns about globalization in the 1990s.13. The Uruguay Round benefited developing countries by the reduction in tradeprotectionism on agricultural products and labor-intensive commodities. Althoughprotectionism will be reduced, it will still remain relatively high in these products. (6920833.doc) 11-4 Dominick Salvatore14. Immiserizing growth does not seem to have occurred in most globalizing developingcountries despite some deterioration in their terms of trade because the volume of trade and their income terms of trade have increased substantially over the past three decades.15. Rich nations should forgive all of the foreign debt of the poorest developing countriesbecause it is impossible for them to repay it or even service it. This, however, mightencourage the poorest nations to continue to borrow and even use borrowed fundsunwisely knowing that eventually their foreign debt might be forgiven.(6920833.doc) 11-5 Dominick Salvatore(6920833.doc) 11-6Dominick SalvatoreMultiple-choice Questions:1. According to traditional trade theory, a developing nation should export the commodity:a. of its comparative advantageb. that it can produce relatively more efficientlyc. intensive in the nation's relatively abundant factor*d. all of the above2. Which of the following is false with respect to traditional trade theory?a. it can incorporate changes in factor endowments and technologyb. it leads to the best allocation of resources at any point in time*c. it is a dynamic theoryd. it is based on comparative advantage3. According to Nurkse, international trade was an engine of growth for:*a. the regions of recent settlements during the 19th centuryb. regions of recent settlements during the 20th centuryc. developed nations during the 19th centuryd. developed nations during the 20th century4. Trade cannot be an engine of growth for today's developing nations because:a. the income elasticity for many of their exports is less than 1b. the development of synthetic substitutesc. technical advances reduced the raw-material content of many products*d. all of the above5. If the price of a nation's exports and imports both rise, the nation's commodity terms oftrade:a. improveb. deterioratec. remain unchanged*d. any of the above6. The nation's commodity terms of trade times the productivity index in its export sectorgives the nation'sa. income terms of trade(6920833.doc) 11-7 Dominick Salvatoreb. double factoral terms of trade*c. single factoral terms of traded. barter terms of trade7. When a nation's commodity terms of trade deteriorate and its single factoral terms oftrade improve, the nation's welfare:a. falls*b. risesc. remains unchangedd. any of the above9. Developing nations often experience wildly fluctuating export prices for their primary products because of:a. inelastic and stable demand and supplyb. elastic and unstable demand and supply*c. inelastic and unstable demand and supplyd. elastic and stable demand and supply10. MacBean found that the export instability faced by developing nations was:*a. not very large and did not seriously interfere with developmentb. very large and seriously interfered with developmentc. very large but did not seriously interfere with developmentd. not very large but seriously interfered with development11. Supporting the price of a commodity by buying it when its price is low is:*a. a buffer stockb. a purchase contractc. an export controld. a marketing board12. The policy of import substitution was most vigorously followed by:a. large developing nations during the 1970's*b. large developing nations during the 1960'sc. small developing nations during the 1970'sd. small developing nations during the 1960's13. What is the advantage of a policy of import substitution?(6920833.doc) 11-8 Dominick Salvatorea. setting up an industry to replace imports minimizes risk of failure because the market for the product already exists in the nation as evidenced by the nation's imports of the commodityb. It is easier for developing nations to protect their domestic market against foreign competition than to force developed nations to lower their trade barriers against their manufactured exportsc. foreign firms are induced to establish tariff factories to overcome the tariff wall of developing nations*d. all of the above.14. Which are is not an advantage of export-oriented industrialization?a. It overcomes the smallness of the domestic market and allows developing nations to take advantage of economies of scale*b. domestic industries grow accustomed to protection and have an incentive to become more efficientc. production of manufactured goods for export requires and stimulates efficiency throughout the economyd. the expansion of manufactured exports is not limited by the size of the domestic market15. Those nations that liberalized trade during the past decade*a. grew faster than those that did notb. grew more slowly than those that did notc. grew at about the same rate as those that did notd. any of the above16. Which of the following is not part of the demand for a NIEO?a. the establishment of international commodity agreements*b. preferential access for the manufactured exports of developed nationsc. removal of the agricultural trade barriers in developed nationsd. increasing the yearly flow of foreign aid to developing nations(6920833.doc) 11-9 Dominick Salvatore。
国际经济学第九版答案.doc
国际经济学第九版答案【篇一：国际经济学第九版英文课后答案第13 单元】> balance of paymentsoutline13.1 introduction13.2 balance of payments accounting principles 13.2a debitsand credits 13.2b double-entry bookkeeping13.3 the international transactions of the united states casestudy 13-1: the major goods exports and imports of the unitedstates13.4 accounting balances and disequilibrium in internationaltransactions13.5 the postwar balance of payments of the united statescase study 13-2: the major trade partners of the united statescase study 13-3: the u.s. trade deficit with japancase study 13-4:the exploding u.s. trade deficit with china13.6 the international investment position of the unitedstatescase study 13-5: the united states as a debtor nationappendix: a13.1 the imf method of reporting internationaltransactionsa13.2 the case of the missing surplusbalance of paymentscapital account credittransactionsautonomous transactions debit transactionsaccommodating transactions capitalinflow officialreserve account capital outflowofficial settlements balancedouble-entry bookkeeping deficit in the balance ofpaymentsunilateral transferssurplus in the balance ofpayments statistical discrepancy international investmentposition current account1. in the first lecture, i would cover sections 1 and 2a. theaverage student usually finds the meaning of capital inflowsand outflows particularly difficult to understand. therefore, iwould pay special care in presenting the material in section 2a.i would also assign problems 1 to 8. 2.in the second lecture, iwould cover section 2b and go over problems 1-8.i wouldpresent sections 3 and 4 in the third lecture, and stress themeaning and measurement of balance of payments deficitsand surpluses.sections 5 and 6 (which are mostly descriptiveand not difficult) could be left for studentsto do on their own so that the chapter could still be covered in three lectures. 1. a.the u.s. debits its current account by $500 (for the merchandise imports) and credits capital by the same amount (for the increase in foreign assets in the u.s.).the u.s. credits capital by $500 (the drawing down of its bank balances in london, a capital inflow) and debits capital by an equal amount (to balance the capital credit that the u.s. importer received when the u.k. exporter accepted to be paid in three months).the u.s. is left with a $500 debit in its current account and a net credit balance of $500 in its capital account.2. a).the u.s. debits unilateral transfers by $100 and credits capital by the same amount.b).the u.s. credits its current account by $100 and debits capital by the same amount.c).the debit of $100 in unilateral transfers and the credit of $100 in current account.3. a).the same as 2a.the net result is the same, but the transaction in part a of this problem refers to tied aid while transactions a and b in problem 2 do not.4. the u.s. debits capital account by $1,000 (for the purchase of the foreign stock by the u.s. resident) and also credits the capital account (for the drawing down of the u.s. resident bank balances abroad) by the same amount.5. the u.s. credits its current account by $100 and debits its capital account by the same amount.6. the u.s. credits its capital account by $400 (for the purchase of the u.s. treasury bills by the foreign resident) and debits its capital account (for the drawing down of the foreign residents bank balances in the united states) for the by the same amount.7. the u.s. debits its current account by $40 for the interest paid, debits its capital account by $400 (for the capital outflow for the repayment of the repayment of the principal to the foreign investors by the u.s. borrower), and then credits its capital account by $440 (the increase in foreign holdings of u.s. assets, a credit).8. a). the u.s. credits its capital account by $800 and debits its official reserves account by the same amount.b). the official settlements balance of the u.s. will improve (i.e., the u.s. deficit will fall or its surplus will rise) by $800.where values are in billions of dollars and a negative balance represents a deficit while apositive balance a surplus in the balance of payments. b. because until 1972, we had a fixed exchange rate system, but from 1973 we had a managed floating exchange rate system. under the latter, the balance of payments only measures the amount of official intervention in foreign exchange markets. 9.see the july issue of the survey of current business for the most recent year.10.see the july issue of the survey of current business for the most recent year.11.see the july issue of the survey of current business for the most recent year.12. see the july and november issues of the survey of current business for the most recent year.13.see the balance of payments statistics yearbook for the most recent year. app. 1. the major difference between the way the united states keeps its balance of payments and the international monetary fund method is in the way they deal with international capital movements. the united states records international capital movements as increases in u.s.-owned assets abroad and foreign-owned assets in the united states, subdivided into government and private. the international monetary fund includes international capital flows into a financial account, which is subdivided into direct investments, portfolio investments assets and liabilities, and other investment assets and liabilities.2. see the table in april and october issue of the imfs world economic outlook for the most recent year.1. which of the following is false?a. a credit transaction leads to a payment from foreignersb.a debit transaction leads to a payment to foreigners *c. a credit transaction is entered with a negative signd. double-entry bookkeeping refers to each transaction entered twice.2. which of the following is a debit?a. the export of goodsb. the export of services*c. unilateral transfers given to foreigners d. capital inflows 3. capital inflows:a. refer to an increase in foreign assets in the nationb. referto a reduction in the nations assets abroad c. lead to apayment from foreigners *d. all of the above4. when a u.s. firm imports goods to be paid in three monthsthe u.s. credits:a. the current accountb. unilateral transfers *c. capitald. official reserves5. the receipt of an interest payment on a loan made by a u.s.commercial bank to a foreign resident is entered in the u.s.balance of payments as a:a. credit in the capital account *b. credit in the currentaccount c. credit in official reserves d. debit in unilateraltransfers6. the payment of a dividend by an american company to aforeign stockholder represents:a. a debit in the u.s. capital accountb. a credit in the u.s.capital accountc. a credit in the u.s. official reserve account *d. a debit in theu.s. current account7. when a u.s. firm imports a good from england a pays for itby drawing on its pound sterling balances in a london bank,the u.s. debits its current account and credits its:a. official reserve accountb. unilateral transfers accountc.services in its current account *d. capital account8. when the u.s. ships food aid to a developing nation, the u.s.debits:*a. unilateral transfers b. services c. capitald. official reserves9. when the resident of a foreign nation (1) sells a u.s. stockand (2) deposits the proceeds in a u.s. bank, the u.s.:a. credits capital for (1) and debits capital for (2)b. creditsthe current account and debits capital c. debits capital andcredits official reserves*d. debits capital for (1) and credits capital for (2)10. when a u.s. resident (1) purchases foreign treasury billsand pays by (2) drawing down his bank balances abroad, theu.s.:【篇二：国际经济学第九版英文课后答案第9 单元】>(core chapter)nontariff trade barriers and the new protectionism outline9.1 introduction9.2 import quotas9.2a effects of an import quota9.2b comparison of an import quota to an import tariff9.3 other nontariff barriers and the new protectionism 9.3a voluntary export restraintsstates9.3b technical, administrative, and other regulations9.3c international cartels9.3d dumping9.3e export subsidies9.4 the political economy of protectionism9.4a fallacious and questionable arguments for protection 9.4b infant-industry and other qualified arguments for protection9.4c who gets protected?welfare effects on the u.s. economy of removing all import restraintsrestraints9.5 strategic trade and industrial policies9.5a strategic trade policy9.5b strategic trade and industrial policies with game theory 9.5c the u.s. response to foreign industrial targeting and strategic trade policy9.6 history of u.s. commercial policy9.6a the trade agreements act of 19349.6b the general agreements on tariffs and trade (gatt)9.6c the 1962 trade agreements act and the kennedy round 9.6d the trade reform act of 1974 and the tokyo round9.6e the 1984 and 1988 trade acts9.7 the uruguay round and outstanding trade problems 9.7a the uruguay round9.7b outstanding trade problemsbenefits from a “likely ”doha scenario appendix: a9.1 centralized cartels a9.2 international price discriminationa9.3 tariffs, subsidies and domestic goalsquota smoot-hawley tariff act of 1930 nontariff trade barrier (ntbs)trade agreements act of 1934new protectionism most-favored-nation principle voluntary export restraints (vers) bilateral trade technical, administrative, and general agreement on tariff and other regulations trade (gatt)international cartel multilateral trade negotiationsdumpinginternational trade organization (ito) persistent dumping peril-point provisionspredatory dumping escape clausesporadic dumping national security clausetrigger-price mechanismtrade expansion act of 1962export subsidies trade adjustment assistance (taa) export- import bank kennedy roundforeign sales corporationstrade reform act of 1974countervailing duties (cvds) tokyo roundscientific tariff trade and tariff act of 1984infant-industry argumentomnibus trade and competitiveness act of 1988strategic trade policy uruguay roundindustrial policy world trade organization (wto)game theoryglobalization anti-globalization movement1. this is an important core chapter examining some of the most recentdevelopments in international trade policy.2. i would cover sections 1 and 2 in lecture 1. i would pay particular attention tofigure 9-1, which examines the partial equilibrium effects of an import quota.3. i would cover section 3 in lecture 2. here i would clearly explain the differencebetween a regular import quota and a voluntary export restraint. i would alsoclearly explain dumping and figure 9-2 (which deals with export subsidies). the five case studies serve to highlight the theory and show the relevance of thetheory in todays world.4. i would cover section 4 in lecture 3. here i would give special attention to the。
国际经济学第九版英文课后答案 第14单元
*CHAPTER 14(Core Chapter)FOREIGN EXCHANGE MARKETS AND EXCHANGE RATES OUTLINE14.1 Introduction14.2 Functions of the Foreign Exchange MarketsCase Study 14-1: The U.S. Dollar as the Major Vehicle CurrencyCase Study 14-2: The Birth of a New Currency: The Euro14.3 Foreign Exchange Rates14.3a Equilibrium Foreign Exchange RatesCase Study 14-3: Foreign Exchange Quotations14.3b Arbitrage14.3c The Exchange Rate and the Balance of Payments14.4 Spot and Forward Rates, and Foreign Currency Swaps, Futures and Options14.4a Spot and Forward Rates14.4b Currency Swaps14.4c Foreign Exchange Futures and OptionsCase Study 14-4: Quotations on Foreign Currency Futures and OptionsCase Study 14-5: Size, Currency and Geographical Distribution of the Foreign Exchange Market14.5 Foreign Exchange Risks, Hedging, and Speculation14.5a Foreign Exchange Risks14.5b Hedging14.5c Speculation14.6 Interest Arbitrage and Efficiency of Foreign Exchange Markets14.6a Uncovered Interest Arbitrage14.6b Covered Interest Arbitrage14.6c Covered Interest Arbitrage Parity14.6d Covered Interest Arbitrage Margin14.6e Efficiency of Foreign Exchange MarketsCase Study 14-6: Local Currency and Dollar Stock Returns Around the World 14.7 Eurocurrency Markets14.7a Description and Size of Eurocurrency Markets14.7b Reasons for the Development and Growth of the Eurocurrency MarketCase Study 14-7: Size and Growth of the Eurocurrency Market14.7c Operation and Effects of Eurocurrency Markets14.7d Eurobond and Euronote MarketsCase Study 14-8: Rising Competition in Global BankingAppendix A14.1 Derivation of Formula for Covered Interest Arbitrage MarginKey TermsForeign exchange market Foreign exchange riskVehicle currency HedgingSeignorage SpeculationEuro Stabilizing speculationExchange rate Destabilizing speculationDepreciation Interest arbitrageAppreciation Uncovered interest arbitrageCross Exchange rate Covered interest arbitrageEffective exchange rate Covered interest arbitrage parity (CIAP)Arbitrage Covered interest arbitrage margin (CIAM)Spot rate Efficiency of foreign exchange marketsForward rate EurocurrencyForward discount Eurocurrency marketForward premium Offshore depositsCurrency swaps EurobondsForeign exchange futures EuronotesForeign exchange optionsLecture Guide:1. This is one of the most important and challenging of the core chapters, and tocover it adequately requires five classes.2. I would cover the first three sections in the first class, and spend one class on eachof the remaining four sections.3. Students find hedging and speculation difficult. I would explain them slowly andvery carefully. I would also assign and go over the problems in class.4. Section 6 on interest arbitrage and the efficiency of foreign exchange markets isalso difficult but very important and so I would cover it slowly and very carefully. Answers to Problems:1. a. With supply curve of pounds S£, the equilibrium exchange rate is R=$2/£1 andthe equilibrium quantity is Q=£40 million (point E in Figure 1 on the next page)under a flexible exchange rate system. On the other hand with supply curve ofpounds S’£, the equilibrium exchange rate would be R=$3/£1 and the equilibrium quantity would be Q=£20 million (point B in Figure 1).b. If the United States wanted to maintain the exchange rate fixed at R=3 in Figure 1with supply curve S£, the U.S. central bank would gain £40 million in reservesper day.2. a. See Figure 2 on the next page.b. With supply curve of pounds S*£, the equilibrium exchange rate would beR=$1/£1 and Q=£70 million under a flexible exchange rate system (see Figure 2).c. If the United States wanted to maintain a fixed exchange rate of R=1 in Figure 2with S*£, the U.S. central bank would lose £50 million of reserves per day.3. Use $2 to purchase £1 in New York, use the £1 to purchase 410 yens in London,and use the 410 yens to purchase $2.05 in Tokyo, thus earning $0.05 in profit for each pound so transferred.4. a. The forces at work that will make the cross exchange rates consistent in currencyarbitrage in the previous problem are as follows. The selling of pounds for yens in London will reduce the yen price of the pound in London until it is 400 yens to 1.b. The consistent cross rates in Problem 3 are: $2=£1=400 yens.5. a. The pound is at a three-month forward premium of 1c or 0.5% (or 2%/year) withrespect to the dollar.b. The pound is at a three-month forward discount of 4c or 2% (or 8%/year) withrespect to the dollar.6. a. The euro is at three-month forward premium of 1% (or 4%/year) with respect tothe Swiss franc.b. The dollar is at three-month forward discount of 5% (or 20%/year) with respect tothe yen.7. The importer would have to purchase forward £10,000 pounds for delivery inthree months at today's FR=$1.96/£1.After three months (and regardless of what the spot rate is at that time), theimporter would pay $19,600 and obtain the £10,000 he needs to make thepayment.8. The exporter would have to sell forward £10,000 pounds for delivery in threemonths at today's FR=$1.96/£1.After three months, the exporter will deliver the £10,000 and receive $19,600. 9. The speculator can speculate in the forward exchange market by purchasingpounds forward for delivery in three months at FR=$2/£1.If the speculator is correct, he will earn 5c per pound purchased.10. The speculator can speculate in the forward exchange market by selling poundsforward.If the speculator is right, he will earn 5c per pound transferred.If, on the other hand, SR=$2.05/£1, the speculator will lose 5c per pound.11. The interest arbitrageur will earn 2% per year from the purchase of foreign three-month treasury bills if he covers the foreign exchange risk.12. a. If the foreign currency was instead at a forward premium of 1 percent per year, the interest arbitrageur would earn 5% per year.b. If the foreign currency was at a forward discount of 6 percent per year, it wouldpay for investors to transfer funds from the higher- to the lower-interest centerand lose 4% interest but gain 6% from the foreign exchange transaction, for a net gain of 2% per year.13. a. A t point B, the loss of 1% per year from the forward premium on the foreignexchange transaction on the part of the foreign investor is more than made up bythe 2% per year gain from the higher interest rate in our nation.At point B', the 1% interest loss per year on arbitrage inflow into our nation is less than the 2% per year gain on the forward discount on currency transactio n.b.As arbitrage inflow continues from point B, the positive interest differential infavor of our nation declines and the forward premium on the foreign currencyincreases.From B', the interest differential in favor of the foreign country increases and the forward discount on the foreign currency decreases.14. a. A t CIAP, there is no further possibility from increasing returns over and abovethose that investors can achieve in their own country, but this does not mean thatreturns in the two countries are equalized.As proof of this, we can see that in the example given at the end of Section 14.6d, annualized returns remain at 8 percent in London for British investors and are increased from 6 percent to 6.852 for American investors without consideringtransaction costs and 6.602 percent if we consider transaction costs of 1/4 of 1percent investing in London. Thus, returns become less unequal as a result ofCIA, but are not equalized!App.1a. a. The U.S. investor will get back ($200,000)(1.015)=$203,000.b. The U.S. investor will get back $203,000+($200,000)(0.00213)=$203,000+$426=$203,426.c. The U.S. investor will get back $205,000+($200,000)(0.0025)=$203,000+$500=$203,500, an overestimation of $74.Multiple-choice Questions:1. Which is not a function of the foreign exchange market?a. to transfer funds from one nation to anotherb. to finance trade*c. to diversify risksd. to provide the facilities for hedging2. An increase in the pound price of the dollar represents:*a. an appreciation of the dollarb. a depreciation of the dollarc. an appreciation of the poundd. a devaluation of the dollar3. A change from $1=€1 to $2=€1 represents*a. depreciation of the dollarb. an appreciation of the dollarc. a depreciation of the poundd. none of the above4. A shortage of pounds under a flexible exchange rate system results in:a. a depreciation of the pound*b. a depreciation of the dollarc. an appreciation of the dollard. no change in the exchange rate5. An effective exchange rate is a:a. spot rateb. forward ratec. flexible exchange rates*d. weighted average of the exchange rates between the domestic currency and the nation's most important trade partners6. The exchange rate is kept within narrow limits in different monetary centers by:a. hedging*b. exchange arbitragec. interest arbitraged. speculation7. If SR=$1/€1 and the three-month FR=$0.99/€1:*a. the euro is at a three-month forward discount of 1%b. the euro is at a forward discount of 1% per yearc. the euro is at a three-month forward premium of 1%d. the dollar is at a three-month forward discount of 1%8. Hedging refers to:a. the acceptance of a foreign exchange risk*b. the covering of a foreign exchange riskc. foreign exchange speculationd. foreign exchange arbitrage9. A U.S. importer scheduled to make a payment of €100,000 in three months can hedge his foreign exchange risk by:a. purchasing $100,000 in the forward market for delivery in three monthsb. selling €100,000 in the spot market for delivery in three months*c. purchasing €100,000 in the forward ma rket for delivery in three monthsd. selling €100,000 in the spot market for delivery in three months10. If the three-month FR=$1/€1 and a speculator anticipates that SR=$1.02/€1 in three months, he can earn a profit by:a. selling euros forward*b. purchasing euros forwardc. selling dollars forwardd. purchasing dollars forward11. Destabilizing speculation refers to the:*a. sale of the foreign currency when the exchange rate falls or is lowb. purchase of the foreign currency when the exchange rate falls or is lowc. sale of the foreign currency when the exchange rate rises or is highd. all of the above12. A capital outflow from New York to Frankfurt under covered interest arbitrage can take place if the interest differential in favor of Frankfurt is:a. smaller than the forward discount on the eurob. equal to the forward discount on the euro*c. larger than the forward discount on the eurod. none of the above.13. According to the theory of covered interest arbitrage, if the interest differential in favor of the foreign country exceeds the forward discount on the foreign currency, there will be a:a. capital inflow under covered interest arbitrage*b. capital outflow under covered interest arbitragec. no capital flow under a covered interest arbitraged. any of the above14. When the interest differential in favor of the foreign country is equal to the forward premium on the foreign currency, we:a. are at covered interest arbitrage parity*b. are not at covered interest arbitrage parityc. may or may not be at covered interest arbitrage parityd. we cannot say without additional information15. The currency of the nation with the lower interest rate is usually at a*a. forward premiumb. forward discountc. covered interest arbitrage parityd. any of the above。
国际经济学第九版英文课后答案第17单元.docx
* CHAPTER 17(Core Chapter)THE INCOME ADJUSTMENT MECHANISM AND SYNTHESISOF AUTOMATIC ADJUSTMENTSOUTLINE17」Introduction17.2Income Determination in a Closed Economy17.2a Determination of the Equilibrium National Income in a Closed Economy17.2b The Multiplier in a Closed Economy17.3Income Determination in a Small Open Economy17.3a Import FunctionCase Study 17-1: Income Elasticity of Imports and Exports in the Leading IndustrialCountries17.3b Determination of Equilibrium National Income in a Small Open Economy17.3c Graphical Determination of the Equilibrium National IncomeCase Study 17-2: Savings, Investments, and the Current Account Balance in the Leading Industrial Nations17.3d Foreign-Trade Multiplier17.4Foreign RepercussionsCase Study 17-3: Growth in United States and Abroad, and U.S. Current Account Deficits Case Study 17-4: Growth and Current Account Balance in Developing Countries17.5Absorption ApproachCase Study 17-5: Effect of the Asian Financial Crisis of the Late 1990s on OECDCountries17.6Monetary Adjustments and Synthesis of Automatic Adjustments17.6a Monetary Adjustments17.6b Synthesis of Automatic AdjustmentsCase Study 17-6: Interdependence in the World Economy17.6c Disadvantages of Automatic AdjustmentsAppendix: A17.1 Derivation of Foreign Trade Multipliers with Foreign Repercussions A17.2 The Transfer Problem Once AgainKey TennsClosed economyEquilibrium level of national income (YE) Import functionMarginal propensity to import (MPM)Lecture Guide:1. In the first lecture on Chapter 17 (a core chapter), I would cover sections 1 and 2 andassign problems 1 to 4. Section 2 is a review of principles of economics but myexperience is that the average student needs it to clearly understand the material in the rest of the chapter.2. In the second lecture, I would cover sections 3 and 4 and assign problems 3 to 8・ Most other texts do not deal with foreign trade multipliers in any great detail because of the difficulty of deriving them. However, their meaning and use is important and they can s still be discussed without deriving them (their derivation is in section A 17.1 of theappendix, which can be made optional for the best and most eager students in the class). 3.In the third lecture, I would cover sections 5 and 6 and assign problems 9 to 14. These two sections are very important and difficult. Answer to Problems:1. See Figure 1 on the next page.The equilibrium level of national income is Y E = 1,000 and is given by point E at which the C+I function crosses the 45° line.2. a. S=-100+0.2Y.The saving function is obtained by subtracting vertically the consumption function from the 45° lineb. See Figure 2.The equilibrium level of national income is Y E = 1,000 and is given by point E at which the positively-sloped S function crosses the horizontal I function.Desired or planned investmentMarginal propensity to consume (MPC)Consumption functionSaving functionMarginal propensity to save (MPS)Investment functionMultiplier (k)Average propensity to import (MPM) Income elasticity of imports (ny) Export function Foreign trade multiplier (kJ Foreign repercussions Absorption approach Synthesis of automatic adjustments3.See Figure 3.The new equilibrium level of national income is Y E = 1,500 and is given by point E1 at which the new C+F function crosses the 45° line.c/r kFigure 21.500 Figure 34.a. See Figure 4 on the next page.The new equilibrium level of national income is Y E = 1,500 and is given by point E' at which the S function crosses the new I* function.b. k=l/MPS=l/(l/5)=5.5.a. S(Y)+M(Y)二100+0.2Y+150+0.2Y=50+0.4YI+X= 100+350=45050+0.4Y=450; therefore, Y E=400/0.4=1000・b. See Figure 5.The equilibrium level of national income is Y E = 1,000 and is given by point E at which the positively-sloped S+M function crosses the horizontal I+X function.6.See Figure 6.The equilibrium level of national income is Y E = 1,000 and is given by point E at which the negatively-sloped X-M function crosses the positively-sloped S-I function.7.a. I+X= 100+350+200=65050+0.4Y=650;therefore, Y E-1500At Y41500, 150+0.2Y二150+(0.2)(1500)二450X'-M=550-450=100See Figure 7 on page 155.b. I'+X=650Y41500X-M=350-450=-100See Figure 8.s.rr f-1.500 -100Fours *AgurB5s-rFigure8Figure9c. X*+r=550+300=85050+0.4Y=850therefore, Y E'=2000At Y E H=2000, M= 150+0.2Y=150+(0.2)(2000)=550X'・M=550・550二0See Figure 9 on page 155.& a. S'(Y)+M(Y)二200+0.2Y+150+0.2Y二50+0.4YI+X= 100+350=450・50+0.4Y=450therefore, Y E-1250At Y£=1250, M= 150+0.2Y= 150+(0.2)(1250)二400X-M=350-400=-50 SSee Figure 10 on page 157.b.S(Y)+M'(Y)=・100+0.2Y+50+0.2Y二50+0.4Y・50+0.4Y=450therefore, Y E-1,250at Y41250, M,=50+0.2Y=50+(0.2)(l ,250)=300X-M*=350-300=50 (see Figure 11).c.S'( Y)+M'( Y)二200+0.2Y+50+0.2 Y二150+0.4Y■150+0.4 Y=450therefore, Y E”=1500at Y E”=1500, M'=50+0.2Y=50+(0.2)( 1500)=350 X-M-350-350=0 (see Figure 12).Agure 10Fgurt 11Figure 129. a.K n= _______________ 1 _______________ = ___________ 1MPS1+MPM1 +MPM2(MPS1 /MPS2) 0.20+0.20+0.10(0.20/0.15)AYE=(AX)(k H)=(200)(l .88)=376AM=(AYE)(MPM 1 )=(376)(0.20)=75.2AS=(AYE)(MPS l)=(376)(0.20)=75.2△X二AS+AM二75.2+75.2=150.4 so thatAX-AM=75.2=Nation l's trade surplus.b・k* = _________ 1+MPM2/MPS2 ________ = _______ 1+0.10/0.15 MPS1+MPM1 +MPM2(MPS1 /MPS2) 0.533AYE=(AI)(k*)=(200)(3.13)=626AM=(AYE)(MPM 1 )=(626)(0.20)= 125.2AS=(AYE)(MPS l)=(626)(0.20)= 125.2200+AX=125.2+l25.2and AX=50.4 so thatAX-AM=50.4-125.2=74.810.k**二 __________________ MPM2/MPS2 _____________ = _______ 0.10/0.15 MPS1+MPM1+MPM2(MPS1/MPS2) 0.533AYE=(AI*)(k**)(200)(l .25)=250AM=(AYE)(MPM l)二(250)(0.20)二50=AS10.5331.88=1.667 = 3.130.5330=6J = 1.250.533AX=AS+AM =100AX-AM=511.k**= 0.5 = 0.950.53AYE=(AI*)(k**)=(200)(0.95)= 190AM=(A YE)(MPM 1 )=( 190)(0.15)=28.5=ASAX 二AS+AM=57AX-AM=28.512.The X-M function would shift up as in Figure 9 without full employment. With fullemployment, the depreciation will result in inflation and a return to the condition of Figure8 (i.e., the X-M function would shift up and then down to its original position), unlessdomestic absorption is somehow reduced.13.One reason is that the government sector is not included・ Another reason is if the nationis not in equilibrium.14.The advantages of automatic over policy adjustment to correct a trade disequilibrium are:(1) adjustment begins to operate even before the problem is recognized; (2) there are nopossibilities of policy mistakes; and (3) the adjustment will continue until the tradedisequilibrium is entirely eliminated. On the other hand, adjustment policies can only beenacted after the problem is recognized. There are then delays to enact policies and forthem to have effect. Thus, by the time adjustment policies become effective the nationmay not Ion ger face the problem or may face the opposite problem. Wrong policies canalso be adopted.App. la. Al + m*AY* = sAY + mAYAl* + mAY 二s*AY* + m*AY*AX + m*z\Y* = sAY - mAY-AX + mAY = (s*+m*)AY*-AX + mAY = AY*AX + m*(-AX + mAY) = sAY + mAYs* + m*AX + ・m*AX + m*mz\Y = (s + m)AYs* + m+s*AX + m*AX - m：i：AX + m*mz\Y = (s + m)(s* + m:{c)AYs*AX + m^mAY = (s + m)(s* + m*)AYs*AX = [(s + m) (s* + m*)・ m*m]Z\YAX = [ 1AY s*△Y 二 _________________________________ _____________________________ 二_J_AX ss* + mm* + ms* + m*s ・ m*m s + m + m*s/s*b. k n = _1s + mthat is, k n is already a foreign repercussion.App. 2. Most petroleum exporting nations, notably Saudi Arabia, Libya, and Kuwait could not spend all of their petroleum earnings on increased imports from petroleum importingcountries during the 1970s. Most unspent earnings were used for portfolio purchases in the developed nations, especially in the U.S., through the Eurodollar market. At the sametime, most oil-importing nations deflated their economies to reduce their oil bill andbalance of payments difficulties. The sharp decline in petroleum since 1981 completelyeliminated the excess earnings of most OPEC nations so that the transfer problemdisappeared.Multiple-choice Questions:1.In order to isolate the income adjustment mechanism, we assume that:a.the nation operates under a fixed exchange rate systemb.all prices, wages, and interest rates are constantc.the nation operates at less than full employment*d. all of the above2.The marginal propensity to consume measures:a.the ratio of imports to incomeb.the ratio of income to imports*c. the change in imports over the change in incomed.the change in income over the change in imports3.The income elasticity of imports is given by:a.the percentage change in income over the percentage change in importsb.the change in imports over the change in income*c. the marginal propensity to import over the average propensity to import d. the average propensity to import over the marginal propensity to import4.The equilibrium level of national income in an open economy is given by:a.I + X 二S + Mb.X ・ M = S ・ Ic.I + (X-M) = S*d. all of the above5.If MPS=0.2 and MPM=0.3, the foreign trade multiplier is:a. 5b.3.3c. 3*d. 26.When S exceeds I, an open economy has a trade balance:suiplusb.deficitc.equilibriumd.any of the above7.The S-I function rises because:a.rising I are subtracted from constant S*b・ constant I are subtracted from rising Sc.rising I are subtracted from rising Sd.constant I are added to falling S8- An autonomous fall in M from a condition of equilibrium in national income and in the trade balance results in the nation's income:a. rising and its trade balance turning to deficitb・ falling and its trade balance turning into surplus*c. rising and its trade balance turning into surplusd.rising and the trade balance remaining in equilibrium9.An autonomous increase in S from a condition of equilibrium in national income and in thetrade balance results in the nation's income:a. rising and its trade balance turning into surplus*b・ falling and its trade balance turning into surplusc.falling and its trade balance turning into deficitd・ rising and its trade balance turning into deficit10.The foreign trade multiplier of nation 1 is largest:a.when there are no foreign repercussionsb・ with foreign repercussions for an autonomous increase in nation Ps X that replace domestic production in nation 2*c. with foreign repercussions for an autonomous increase in I in nation 1d.with foreign repercussions for an autonomous increase in I in nation 211.By itself, the automatic income adjustment mechanism is likely to bring about:*a. incomplete adjustmentplete adjustmentc.perverse adjustmentd.any of the above12.A depreciation of a deficit nation's currency from a condition of full employment:*a. may improve the nation's trade balanceb will improve the nation's trade balancec. will leave the nation's trade balance unchangedd・ will cause a deterioration in the nation's trade balance13.The improvement in a nation's balance of trade and payments resulting from a depreciationof its currency is:a. reinforced by the induced fall in imports*b・ partly neutralized by the induced rise in importsc.partly neutralized by the induced fall in importsd.any of the above.14.In the real world, the automatic income, price, and interest adjustment mechanisms, ifallowed to operate, are likely to:a. reinforce each other but still result in incomplete adjustment*b. reinforce each other and result in complete adjustmentc. work at cross purposes from each other and result in incomplete adjustment d・ work at cross purposes from each other and result in perverse adjustment15.A benefit of automatic adjustment mechanisms is that they:a. avoid the possibility of policy mistakesb avoid the time lags associated with adjustment policiesc. begin to operate as soon as balance of payments disequilibria develop*d・ all of the above。
国际经济学第九版英文课后答案 第9单元
*CHAPTER 9(Core Chapter)NONTARIFF TRADE BARRIERS AND THE NEW PROTECTIONISM OUTLINE9.1 Introduction9.2 Import Quotas9.2a Effects of an Import QuotaCase Study 9-1: The Economic Effects of the U.S. Quota on Sugar Imports9.2b Comparison of an Import Quota to an Import Tariff9.3 Other Nontariff Barriers and the New Protectionism9.3a Voluntary Export RestraintsCase Study 9-2: Voluntary Export Restraints on Japanese Autos to the United States9.3b Technical, Administrative, and Other Regulations9.3c International Cartels9.3d DumpingCase Study 9-3: Antidumping Measures in Force in 20049.3e Export SubsidiesCase Study 9-4: Agricultural Subsidies in Developed NationsCase Study 9-5: Countervailing Measures in Force in 2004Case Study 9-6: The Pervasiveness of Nontariff Barriers9.4 The Political Economy of Protectionism9.4a Fallacious and Questionable Arguments for Protection9.4b Infant-Industry and Other Qualified Arguments for Protection9.4c Who Gets Protected?Case Study 9-7: Welfare Effects on the U.S. Economy of Removing All ImportRestraintsCase Study 9-8: Effects on the World Economy of Removing All ImportRestraints9.5 Strategic Trade and Industrial Policies9.5a Strategic Trade Policy9.5b Strategic Trade and Industrial Policies with Game Theory9.5c The U.S. Response to Foreign Industrial Targeting and Strategic TradePolicy9.6 History of U.S. Commercial Policy9.6a The Trade Agreements Act of 19349.6b The General Agreements on Tariffs and Trade (GATT)9.6c The 1962 Trade Agreements Act and the Kennedy Round9.6d The Trade Reform Act of 1974 and the Tokyo Round9.6e The 1984 and 1988 Trade Acts9.7 The Uruguay Round and Outstanding Trade Problems9.7a The Uruguay RoundCase Study 9-9: Gains from the Uruguay RoundCase Study 9-10: The Multilateral Rounds of Trade Negotiations9.7b Outstanding Trade ProblemsCase Study 9-11: Benefits from a “Likely” Doha ScenarioAppendix: A9.1 Centralized CartelsA9.2 International Price DiscriminationA9.3 Tariffs, Subsidies and Domestic GoalsKey TermsQuota Smoot-Hawley Tariff Act of 1930 Nontariff trade barrier (NTBs) Trade Agreements Act of 1934New protectionism Most-favored-nation principleVoluntary export restraints (VERs) Bilateral TradeTechnical, administrative, and General Agreement on Tariff andother regulations Trade (GATT)International cartel Multilateral Trade NegotiationsDumping International Trade Organization (ITO) Persistent dumping Peril-point provisionsPredatory dumping Escape clauseSporadic dumping National security clauseTrigger-price mechanism Trade Expansion Act of 1962Export subsidies Trade Adjustment Assistance (TAA) Export-Import bank Kennedy RoundForeign Sales Corporations Trade Reform Act of 1974 Countervailing duties (CVDs) Tokyo RoundScientific tariff Trade and Tariff Act of 1984Infant-industry argument Omnibus Trade and Competitiveness Act of 1988Strategic trade policy Uruguay RoundIndustrial Policy World Trade Organization (WTO)Game theory GlobalizationAnti-Globalization MovementLecture Guide:1.This is an important core chapter examining some of the most recentdevelopments in international trade policy.2.I would cover sections 1 and 2 in lecture 1. I would pay particular attention toFigure 9-1, which examines the partial equilibrium effects of an import quota. 3.I would cover section 3 in lecture 2. Here I would clearly explain the differencebetween a regular import quota and a voluntary export restraint. I would alsoclearly explain dumping and Figure 9-2 (which deals with export subsidies). The five case studies serve to highlight the theory and show the relevance of thetheory in today's world.4.I would cover section 4 in lecture 3. Here I would give special attention to thefallacious arguments for protection since they are often heard in commondiscussions of trade matters. I would also clearly explain the importance ofstrategic trade and industrial policy and the political economy of who getsprotected.5.I would cover section 5 in lecture 4, which examines strategic trade andindustrial policies policies with game theory. This is not difficult and thestudents will find it very interesting.6.Sections 6 and 7 can be covered in lecture 5. Here I would stress the UruguayRound and the outstanding international trade problems.Answer to Problems:1. Nations restrict trade either in response to lobbying by the producers of acommodity in which the nation has a comparative disadvantage or to gain astrategic advantage in relation to other nations. The first leads to a welfare loss for he nation as a whole. The second is very difficult to achieve.2. The partial equilibrium effects of the import quota are:P x=$1.50; consumption is 45X, of which 15X are produced domestically;by auctioning off import licenses, the revenue effect would be $15.3. The partial equilibrium effects of the import quota are:P x=$2.50; consumption is 40X, of which 10X are produced domestically;the revenue effect is $45.4. The partial equilibrium effects of the quota are:P x=$2; domestic production and consumption are 50X; The revenue is zero.5. The partial equilibrium effects of the quota are:P x=$1; consumption is 70X, production is 30X, and revenue is zero.6. The partial equilibrium effects of a negotiated export quota of 30X are:P x=$4; domestic production is 40X, of which 10X are consumed at home.7.An export tariff or quota, as an import tariff or quota, affects the price of thecommodity and domestic consumption and production. But the effects are theopposite.8. See Figure 1.The equilibrium price of the commodity is P x=OC and the equilibrium quantity is Q x=OB in Figure 1.9.If the supply curve of the commodity in Figure 1 referred to a cartel ofexporters acting as a monopolist, P x=OF and Q x=OA (see Figure 1).10. P x is higher and Q x smaller when exporters behave as a monopolist.11. a) The monopolist should charge P1=$4 in the domestic market and P2=$3 inFigure 9-5 in Appendix A9.2.b) This represents the best, or optimal distribution of sales between the twomarkets because any other distribution of sales in the two markets gives lessrevenue.12. See Figure 2. To the left of point A, the domestic firm faces higher long-run average costs of production (LAC D) than the foreign firm (LAC F). To theright of point A the opposite is the case.13.a) If the entries in the top left-hand corner of Table 9-5 were changed to +10,+10, then both Boeing and Airbus would produce the aircraft without anysubsidy, and so no strategic trade and industrial policy would be needed in theU.S. or Europe.b)If the entries in the top left-hand corner of Table 9-5 were changed to +5, +0,then both Boeing and Airbus would produce the aircraft without any subsidy, and so no strategic trade and industrial policy would be needed in the U.S. or Europe.*Note that even though Airbus only breaks even, in economics we includea normal return on investment as part of costs. Thus, Airbus wouldremain in business because it would earn a normal return on investment.c)If the entries in the top left-hand corner of Table 9-5 were changed to +5, -10,then both Boeing produces and Airbus does not produce without any subsidy.With a subsidy of at least $10 million per year, however, Airbus would enterthe market and lead to a loss of $100 million for Boeing unless the U.S.government would provide a subsidy of at least $5 million per year to Boeing.14. The answer to part (a) and (b) are presented in Appendix A9.3.App. 1. See Figure 3 on page 90.App. 2. In order to maximize to maximize total profits the domestic monopolist practicing international price discrimination should sell at theprice of P d=$20 in the domestic market and at the price of P f=$15 in theforeign market.App. 3. By imposing a 100% tax on the production of commodity X andgiving it as a subsidy to producers of commodity Y.Multiple-choice Questions:1. An import quota:a. increases the domestic price of the imported commodityb. reduces domestic consumptionc. increases domestic production*d. all of the above2. An increase in the demand of the imported commodity subject to a given import quota:a. reduces the domestic quantity demanded of the commodity*b. increases the domestic production of the commodityc. reduces the domestic price of the commodityd. reduces the producers' surplus3.Adjustment to any shift in the domestic demand or supply of an importablecommodityoccurs:a. in domestic price with an import quotab. in the quantity of imports with a tariffc. through the market mechanism with an import tariff but not with an import quota *d. all of the above4. An international cartel refers to:a. dumping*b. an organization of exportersc. an international commodity agreementd. voluntary export restraints5.The temporary sale of a commodity at below cost or at a lower price abroad in orderto drive foreign producers out of business is called:*a. predatory dumpingb. sporadic dumpingc. continuous dumpingd. voluntary export restraints6.The type of dumping which would justify antidumping measures by the countrysubject to the dumping is:*a. predatory dumpingb. sporadic dumpingc. continuous dumpingd. all of the above7. A fallacious argument for protection is:a. the infant industry argumentb. protection for national defense*c. the scientific tariffd. to correct domestic distortions8. Which of the following is true with respect to the infant-industry argument forprotection:a. it refers to temporary protection to establish a domestic industryb. to be valid, the return to the grown-up industry must be sufficiently high also to repay for the higher prices paid by domestic consumers of the commodity during the infancy periodc. is inferior to an equivalent production subsidy to the infant industry*d. all of the above9. Which of the following is false with respect to strategic trade policy?a. it postulates that a nation can gain by an activist trade policy*b. it is practiced to some extent by most industrial nationsc. it can easily be carried outd. all of the above10.Industrial policy refers to:a. an activist policy by the government of an industrial country to stimulate the development of an industryb. the granting of a subsidy to a domestic industry to stimulate the development of an industryc. the granting of a subsidy to a domestic industry to counter a foreign subsidy*d. all of the above11. Game theory refers to:*a. a method of choosing the optimal strategy in conflict situationsb. the granting of a subsidy to correct a domestic distortionc. the theory of tariff protectiond. none of the above12. Trade protection in the United States is usually provided to:a. low-wage workersb. well-organized industries with large employmentc. industries producing consumer products*d. all of the above13. The most-favored-nation principle refers to:*a. extension to all trade partners of any reciprocal tariff reduction negotiated by the U.S. with any of its trade partnersb. multilateral trade negotiationc. the General Agreement on Tariffs and Traded. the International Trade Organization14. On which of the following principles does GATT rest?a. nondiscriminationb. elimination of nontariff barriersc. consultation among nations in solving trade disputes*d. all of the above15. Which of the following was not negotiated under the Uruguay Round?a. reduction of tariffs on industrial goodsb. replacement of quotas with tariffsc. reduction of subsidies on industrial products and on agricultural exports*d. liberalization in trade in most services。
国际经济学第九版英文课后答案第18单元
国际经济学第九版英⽂课后答案第18单元CHAPTER 18OPEN-ECONOMY MACROECONOMICS: ADJUSTMENT POLICIES OUTLINE*18.1 IntroductionCase Study 18-1: Government, Private Sector, and Current Account Balancesin the G-7 Countries*18.2 Internal and External Balance with Expenditure-Changing andExpenditure-Switching Policies18.3 Equilibrium in the Goods Market, in the Money Market, and in theBalance of Payments18.4 Fiscal and Monetary Policies for Internal and External Balancewith Fixed Exchange Rates18.4a Fiscal and Monetary Policies from External Balance and Unemployment18.4b Fiscal and Monetary Policies from External Deficit and Unemployment18.4c Fiscal and Monetary Policies with Elastic Capital Flows18.4d Fiscal and Monetary Policies with Perfect Capital MobilityCase Study 18-2: Relationship Between U.S. Current Account and BudgetDeficits18.5 The IS-LM-FE Model with Flexible Exchange Rates18.5a IS-LM-FE Model with Flexible Exchange Rates and Imperfect CapitalMobilityCase Study 18-3: Effect of U.S. Fiscal Policy in the United States and Abroad18.5b IS-LM-FE Model with Flexible Exchange Rates and Perfect CapitalMobilityCase Study 18-4: Effect of Monetary Policy in the U.S. and Other OECDCountries*18.6 Policy Mix and Price Changes18.6a Policy Mix and Internal and External Balance18.6b Evaluation of the Policy Mix with Price Changes18.6c Policy Mix in the Real WorldCase Study 18-5: U.S. Monetary and Fiscal Policies in the 1980s and Early 1990s *18.7 Direct Controls 18.7a Trade Controls18.7b Exchange ControlsCase Study 18-6: Direct Controls on International Transactions Around theWorld18.7c Other Direct Controls and International CooperationAppendix: A18.1 Derivation of the IS CurveA18.2 Derivation of the LM CurveA18.3 Derivation of the FE CurveA18.4 Mathematical SummaryKey TermsInternal Balance Transaction demand for moneyExternal balance Speculative Demand for money Expenditure-changing policies BP curveExpenditure-switching policies Phillips curvePrinciple of effective market classification Exchange controlsIS curve Multiple exchange ratesLM curveLecture Outline:1. This is one of the most important and challenging of the chapters. Sections 1-2and 6-7 are core sections and should be covered in any international economicscourse. Sections 3-5 introduce the IS-LM-BP model and may be skipped ifintermediate macroeconomics is not a requirement for the course. This is up to the Instructor, however.2. In the first lecture, I would cover sections 1 and 2 and assign problems 1-3. Themost important and difficult part here is the Swan diagram. If students are toknow anything about economic policies to correct internal and externalimbalances, this is it.3. Sections 3-5 require two classes to be covered adequately if students hadintermediate macroeconomics. Otherwise, it would take three classes, or they can be skipped. If sections 3-5 are covered, I would assign problems 4-11 and go over some of these in class to make sure that students fully understand the model and the policies that can be used to correctinternal and external imbalances.4. I would cover section 6 in the next class and assign problems 12-14. The mostimportant aspect of this section is the explicit recognition of price stability as thethird important objective of nations and the problems that this creates with thepolicies at hand to achieve internal and external balance completely. I would also cover Case Studies 18.1-18-3.5. I would leave section 7 for students to cover by themselves. The section isimportant but mostly descriptive and students to read it on their own and bringquestions to class.Answer to Problems:1. Point Change in D Change in RC1 increase devalueC4 increase revalueC7 decrease revalueC10 decrease devalue2. Point Change in D Change in RC2 increase noneC5 none revalueC8 decrease noneC11 none devalue3. Point Change in D Change in RC3 increase revalueC6 decrease revalueC9 decrease devalueC12 increase devalue4. a. The nation faces a surplus at Y E=1,000 because P is below point E.b. At Y E=1,000 and with a MPM=0.15, the nation faces a surplus of(200)(0.15)=30.5. The nation of problem 4 can reach full employment with external balance with theexpansionary fiscal policy that shifts IS upward until it crosses the BP line atpoint F and the tight monetary policy that shifts LM upward until it also crossesthe BP line at point F.6. The nation requires the expansionary fiscal that shifts the IS curve up until itcrosses the BP curve at point F and the tight monetary policy that shifts up theLM curve until it crosses the BP curve at point F.See Figure 1.7. If the full-employment level of national income is YE=1,000, the nation requiresthe expansionary fiscal policy that shifts the IS curve up until it crosses the BPcurve at point B' and the tight monetary policy that shifts up the LM curve until it crosses the BP curve at point B'.See Figure 2.8. a. If the BP curve were flatter than the LM curve, the nation would require theexpansionary fiscal policy that shifts the IS curve up until it crosses the PB curve at point F and the easy monetary policy that shifts down the LM curve until itcrosses the BP curve at point F.See Figure 3.b. When the BP curve is flatter than the LM curve, the nation requires an easy ratherthan a tight monetary policy to achieve internal and external balancesimultaneously.9. With perfectly elastic international capital flows, the BP line would be horizontaland monetary policy would be completely ineffective. The nation could reachinternal and external balance with the appropriate expansionary fiscal policy only.10. Starting from point E in Figure 18-8 in the text, the nation could use the fiscalpolicy that shifts the IS curve to IS', intersecting the LM curve at point Z (seeFigure 4 on the next page). Since point Z is to the right of the BP curve, the nation will have a deficit in its balance of payments. With flexible exchange rates, thenation's currency depreciates and so the BP curve shifts to the right. This inducesa leftward shift in the LM curve to LM', such that curve IS" and LM' intersect onthe BP curve at point E'. Since at point E' the nation still faces unemployment, the nation would need to apply additional doses of expansionary fiscal policy until all three markets are in equilibrium at the full-employment level of national income of YF = 1500.11. Starting from point E in Figure 18-8 in the text, the nation could use the fiscalpolicy that shifts the IS curve to IS' (see Figure 5 on the next page), intersectingthe LM curve at point Z. Since point Z is now to the left of the BP curve, thenation will have a surplus in its balance of payments. With flexible exchangerates, the nation's currency appreciates and so the BP curve shifts to the left. This induces a leftward shift in the IS curve to IS" and a rightward shift in the LMcurve to LM', such that curve IS" and LM' intersect on the BP curve at point E'.Since at point E' the nation still faces unemployment, the nation would need toapply additional doses of expansionary fiscal policy until all three markets are inequilibrium at the full-employment level of national income of YF = 1500.12. Point Fiscal Policy Monetary PolicyC3 expansionary easyC6 contractionary easyC9 contractionary tightC12 expansionary tight13. PointC1 expansionary tightC5 contractionary easyC7 contractionary easyC11 expansionary tight14. Point Fiscal Policy Monetary PolicyC4 none easyC8 contractionary noneC10 none tightApp. 1 Draw in panel IV of Figure 18-11 the I(i)+X+G function 50 units to the left of I(i)+X, and draw in panel I the IS' function 125 units on the right of IS[the S(Y)+M(Y) function remains unchanged]. Draw a dashed rectangle with corners (Y=1125, i=10%) on the IS' line,(Y=1125, leakages=500) on theS(Y)+M(Y) line, (injections=500, leakages=500) on the 45 degree line, and(injections=500, i = 10%) on the I(i)+X+G line. S increases by(?Y)(MPS)=(125)(0.25, from section 17.3c) = 31.25, M increases by(?Y)(MPM)=(125)(0.15)=18.75 for a total increase in leakages of 50 equal to theincrease in injections of G=50.App. 2a Draw in panel III of Figure 18-12 the MS' line 100 units to the left of MS, in panel IV the ML' line 100 units to the right of ML, and in panel I the LM' line 500units to the right of LM (the MT line in panel II remains unchanged). Draw adashed rectangle with corners (Y=1250, i=8%) on the LM' line, (Y=1250,MT=500) on the MT line, (ML=400, MT=500) on the MS' line, and (ML=400,i=8%) on the ML' line.App. 2b Xerox Figure 18-12 and draw in panel II the MT' line 500 units to the left of MT, and in panel I the LM" line 500 units to the left of LM (the MS and ML linesremain unchanged). Draw a dashed rectangle with corners (Y=500, i=10%) on theLM" line, (Y=500, MT=400) on the MT' line, (ML=400, MT=400) on the MSline, and (ML=400, i=10%) on the ML line.App. 2c Y E=1000, MT=600 leaving ML=400 at i=10%. LM" shifts back to LM.App. 3 Draw in panel II of Figure 18-13 the (X-M)' line 50 units above X-M, and in panel I the BP' line 4 units below BP (the SC line in panel IV remainsunchanged). Draw a dashed rectangle with corners (YE=1000, i=6%) on the BP'line, (Y E=1000, X-M=50) on the (X-M)' line, (SC=-50, X-M=50) on the 45degree line, and (SC=-50, i=6%) on the SC line.App. 4a The reduction in G* causes YE to fall by the reduction in G* times themultiplier. The fallin Y E induces a total fall in S and M equal to the fall in G*(graphically, this can be shown by the opposite changes from those described inApp. 1 above).App. 4b The reduction in MS* causes i to rise and ML and MT to fall. These effects are generally the opposite of those described in App. 2a above.App. 4c An appreciation or revaluation causes X to fall and M to rise (see equation 18A-1), MT to fall (see equation 18A-2), and TB to deteriorate (see equation 18A-3).Multiple-choice Questions:1. The most important economic objective of industrial nations is:a. external balance*b. internal balancec. a reasonable rate of growthd. an equitable distribution of income2. In order to achieve internal and external balance simultaneously, a nation must usually use at least:a. one policy*b. two policiesc. three policiesd. cannot say3. Points below internal balance line YY in the Swan diagram indicate:a. a balance of payments deficitb. a balance of payments surplus*c. unemploymentd. inflation4. To correct a balance of payments deficit and unemployment a nation requires a:a. devaluation and expansionary fiscal and monetary policiesb. devaluation and contractionary fiscal and monetary policies*c. devaluation and either expansionary or contractionary fiscal and monetary policiesd. revaluation and either expansionary or contractionary fiscal and monetary policies5. To correct a balance of payments deficit and inflation a nation requires a:a. devaluation and expansionary fiscal and monetary policiesb. devaluation and contractionary fiscal and monetary policies*c. devaluation or revaluation and contractionary fiscal and monetary policiesd. revaluation and either expansionary or contractionary fiscal and monetary policies6. To correct a balance of payments surplus and unemployment a nation requires a:a. devaluation and expansionary fiscal and monetary policiesb. devaluation and contractionary fiscal and monetary policies*c. devaluation or revaluation and expansionary fiscal and monetary policiesd. revaluation and either expansionary or contractionary fiscal and monetary policies7. To correct a balance of payments surplus and inflation a nation requires a:a. devaluation and expansionary fiscal and monetary policiesb. devaluation and contractionary fiscal and monetary policies*c. devaluation and either expansionary or contractionary fiscal and monetary policiesd. revaluation and either expansionary or contractionary fiscal and monetary policies8. The IS curve is negatively inclined because:a. the higher is the rate of interest the smaller is the quantity of money demanded for speculative purposesb. higher rates of interest lead to greater capital flows*c. at lower interest rates the levels of investment and national income are higherd. at lower interest rates the level of national income is lower9. If the BP curve is above the point of intersection of the IS and LM curves, the nation will:*a. have a balance of payments deficit at that level of incomeb. have a balance of payments surplus at that level of incomec. be in recessiond. face inflation10. To correct unemployment from a condition of external balance, a nation will usually have to use:a. expansionary fiscal policy onlyb. easy monetary policy onlyc. expansionary fiscal policy and easy monetary policy*d. expansionary fiscal policy and tight monetary policy11. To achieve external balance and correct a recession, a nation will always have to use tight monetary policy if at the full employment level of national income the nation's BP curve is:*a. above the LM curveb. below the LM curvec. steeper than the LM curved. above the IS curve12. In a world of perfectly elastic international capital flows and fixed exchange rates:a. fiscal policy is completely ineffective*b. monetary policy is completely ineffectivec. both fiscal and monetary policies are completely ineffectived. both fiscal and monetary policies are effective13. To correct unemployment and a balance of payments deficits with flexible exchange rates and imperfect capital mobility:a. both fiscal and monetary policies are requiredb. fiscal policy is requiredc. monetary policy is required*d. either monetary or fiscal policy is required14. To correct a balance of payments surplus and inflation a nation requires:a. expansionary fiscal policy and easy monetary policyb. contractionary fiscal policy and tight monetary policy*c. contractionary fiscal policy and easy monetary policyd. expansionary fiscal policy and tight monetary fiscal policy15. To correct a balance of payments deficit and inflation a nation requires:a. contractionary fiscal policy and easy monetary policyb. contractionary fiscal policy and tight monetary policyc. expansionary fiscal policy and tight monetary policy*d. any of the above depending on the level of inflation and the size of the initial deficit16. Direct controls refer to:a. tariffs, quotas, and other quantitative restrictions on the flow of international tradeb. restrictions on international capital flowsc. multiple exchange rates*d. all of the above。
国际经济学第九版答案
国际经济学第九版答案【篇一：国际经济学第九版英文课后答案第13单元】> balance of paymentsoutline13.1 introduction13.2 balance of payments accounting principles 13.2a debits and credits 13.2b double-entry bookkeeping13.3 the international transactions of the united states case study 13-1: the major goods exports and imports of the united states13.4 accounting balances and disequilibrium in international transactions13.5 the postwar balance of payments of the united states case study 13-2: the major trade partners of the united states case study 13-3: the u.s. trade deficit with japancase study 13-4:the exploding u.s. trade deficit with china13.6 the international investment position of the united statescase study 13-5: the united states as a debtor nationappendix: a13.1 the imf method of reporting international transactionsa13.2 the case of the missing surplusbalance of paymentscapital account credit transactionsautonomous transactions debit transactionsaccommodating transactions capital inflow official reserve account capital outflowofficial settlements balance double-entry bookkeeping deficit in the balance of paymentsunilateral transferssurplus in the balance of payments statistical discrepancy international investment position current account1. in the first lecture, i would cover sections 1 and 2a. the average student usually finds the meaning of capital inflows and outflows particularly difficult to understand. therefore, i would pay special care in presenting the material in section 2a.i would also assign problems 1 to 8. 2.in the second lecture, i would cover section 2b and go over problems 1-8.i would present sections 3 and 4 in the third lecture, and stress the meaning and measurement of balance of payments deficitsand surpluses.sections 5 and 6 (which are mostly descriptiveand not difficult) could be left for studentsto do on their own so that the chapter could still be covered in three lectures.1. a.the u.s. debits its current account by $500 (for the merchandise imports) and credits capital by the same amount (for the increase in foreign assets in the u.s.).the u.s. credits capital by $500 (the drawing down of its bank balances in london, a capital inflow) and debits capital by an equal amount (to balance the capital credit that the u.s. importer received when the u.k. exporter accepted to be paid in three months).the u.s. is left with a $500 debit in its current account and a net credit balance of $500 in its capital account.2. a).the u.s. debits unilateral transfers by $100 and credits capital by the same amount.b).the u.s. credits its current account by $100 and debits capital by the same amount.c).the debit of $100 in unilateral transfers and the credit of $100 in current account.3. a).the same as 2a.the net result is the same, but the transaction in part a of this problem refers to tied aid while transactions a and b in problem 2 do not.4. the u.s. debits capital account by $1,000 (for the purchase of the foreign stock by the u.s. resident) and also credits the capital account (for the drawing down of the u.s. resident bank balances abroad) by the same amount.5. the u.s. credits its current account by $100 and debits its capital account by the same amount.6. the u.s. credits its capital account by $400 (for the purchase of the u.s. treasury bills by the foreign resident) and debits its capital account (for the drawing down of the foreign residents bank balances inthe united states) for the by the same amount.7. the u.s. debits its current account by $40 for the interest paid, debits its capital account by $400 (for the capital outflow for the repayment of the repayment of the principal to the foreign investors by the u.s. borrower), and then credits its capital account by $440 (the increase in foreign holdings of u.s. assets, a credit).8. a). the u.s. credits its capital account by $800 and debits its official reserves account by the same amount.b). the official settlements balance of the u.s. will improve (i.e., the u.s. deficit will fall or its surplus will rise) by $800.where values are in billions of dollars and a negative balance represents a deficit while apositive balance a surplus in the balance of payments. b. because until 1972, we had a fixed exchange rate system, but from 1973 we had a managed floating exchange rate system. under the latter, the balance of payments only measures the amount of official intervention in foreign exchange markets. 9.see the july issue of the survey of current business for the most recent year.10.see the july issue of the survey of current business for the most recent year.11.see the july issue of the survey of current business for the most recent year.12. see the july and november issues of the survey of current business for the most recent year.13.see the balance of payments statistics yearbook for the most recent year. app. 1. the major difference between the way the united states keeps its balance of payments and the international monetary fund method is in the way they deal with international capital movements. the united states records international capital movements as increases in u.s.-owned assets abroad and foreign-owned assets in the united states, subdivided into government and private. the international monetary fund includes international capital flows into a financial account, which is subdivided into direct investments, portfolio investments assets and liabilities, and other investment assets and liabilities.2. see the table in april and october issue of the imfs world economic outlook for the most recent year.1. which of the following is false?a. a credit transaction leads to a payment from foreignersb.a debit transaction leads to a payment to foreigners *c. a credit transaction is entered with a negative signd. double-entry bookkeeping refers to each transaction entered twice.2. which of the following is a debit?a. the export of goodsb. the export of services*c. unilateral transfers given to foreigners d. capital inflows3. capital inflows:a. refer to an increase in foreign assets in the nationb. refer to a reduction in the nations assets abroadc. lead to a payment from foreigners *d. all of the above4. when a u.s. firm imports goods to be paid in three months the u.s. credits:a. the current accountb. unilateral transfers *c. capitald. official reserves5. the receipt of an interest payment on a loan made by a u.s. commercial bank to a foreign resident is entered in the u.s. balance of payments as a:a. credit in the capital account *b. credit in the current accountc. credit in official reservesd. debit in unilateral transfers6. the payment of a dividend by an american company to a foreign stockholder represents:a. a debit in the u.s. capital accountb. a credit in the u.s. capital accountc. a credit in the u.s. official reserve account *d. a debit in the u.s. current account7. when a u.s. firm imports a good from england a pays for it by drawing on its pound sterling balances in a london bank, the u.s. debits its current account and credits its:a. official reserve accountb. unilateral transfers accountc. services in its current account *d. capital account8. when the u.s. ships food aid to a developing nation, the u.s. debits:*a. unilateral transfers b. services c. capitald. official reserves9. when the resident of a foreign nation (1) sells a u.s. stock and (2) deposits the proceeds in a u.s. bank, the u.s.:a. credits capital for (1) and debits capital for (2)b. credits the current account and debits capitalc. debits capital and credits official reserves*d. debits capital for (1) and credits capital for (2)10. when a u.s. resident (1) purchases foreign treasury bills and pays by (2) drawing down his bank balances abroad, the u.s.:【篇二：国际经济学第九版英文课后答案第9单元】>(core chapter)nontariff trade barriers and the new protectionismoutline9.1 introduction9.2 import quotas9.2a effects of an import quota9.2b comparison of an import quota to an import tariff9.3 other nontariff barriers and the new protectionism9.3a voluntary export restraintsstates9.3b technical, administrative, and other regulations9.3c international cartels9.3d dumping9.3e export subsidies9.4 the political economy of protectionism9.4a fallacious and questionable arguments for protection 9.4b infant-industry and other qualified arguments for protection9.4c who gets protected?welfare effects on the u.s. economy of removing all import restraintsrestraints9.5 strategic trade and industrial policies9.5a strategic trade policy9.5b strategic trade and industrial policies with game theory 9.5c the u.s. response to foreign industrial targeting and strategic trade policy9.6 history of u.s. commercial policy9.6a the trade agreements act of 19349.6b the general agreements on tariffs and trade (gatt)9.6c the 1962 trade agreements act and the kennedy round 9.6d the trade reform act of 1974 and the tokyo round9.6e the 1984 and 1988 trade acts9.7 the uruguay round and outstanding trade problems9.7a the uruguay round9.7b outstanding trade problemsbenefits from a “likely” doha scenarioappendix: a9.1 centralized cartelsa9.2 international price discriminationa9.3 tariffs, subsidies and domestic goalsquota smoot-hawley tariff act of 1930 nontariff trade barrier (ntbs)trade agreements act of 1934new protectionism most-favored-nation principlevoluntary export restraints (vers) bilateral tradetechnical, administrative, and general agreement on tariff and other regulations trade (gatt)international cartel multilateral trade negotiationsdumpinginternational trade organization (ito) persistent dumping peril-point provisionspredatory dumping escape clausesporadic dumping national security clausetrigger-price mechanismtrade expansion act of 1962export subsidies trade adjustment assistance (taa) export-import bank kennedy roundforeign sales corporationstrade reform act of 1974countervailing duties (cvds) tokyo roundscientific tariff trade and tariff act of 1984infant-industry argumentomnibus trade and competitiveness act of 1988strategic trade policy uruguay roundindustrial policy world trade organization (wto)game theoryglobalizationanti-globalization movement1. this is an important core chapter examining some of the most recentdevelopments in international trade policy.2. i would cover sections 1 and 2 in lecture 1. i would pay particular attention tofigure 9-1, which examines the partial equilibrium effects of an import quota.3. i would cover section 3 in lecture 2. here i would clearly explain the differencebetween a regular import quota and a voluntary export restraint. i would alsoclearly explain dumping and figure 9-2 (which deals with export subsidies). the five case studies serve to highlight the theory and show the relevance of thetheory in todays world.4. i would cover section 4 in lecture 3. here i would give special attention to thefallacious arguments for protection since they are often heard in commondiscussions of trade matters. i would also clearly explain the importance ofstrategic trade and industrial policy and the political economy of who getsprotected.5. i would cover section 5 in lecture 4, which examines strategic trade andindustrial policies policies with game theory. this is not difficult and thestudents will find it very interesting.6. sections 6 and 7 can be covered in lecture 5. here i would stress the uruguayround and the outstanding international trade problems.1.nations restrict trade either in response to lobbying by the producers of acommodity in which the nation has a comparative disadvantage or to gain astrategic advantage in relation to other nations. the first leads to a welfare loss for he nation as a whole. the second is very difficult to achieve.2.the partial equilibrium effects of the import quota are:px=$1.50; consumption is 45x, of which 15x are produced domestically;by auctioning off import licenses, the revenue effect would be $15.3.the partial equilibrium effects of the import quota are:px=$2.50; consumption is 40x, of which 10x are produced domestically;the revenue effect is $45.4.the partial equilibrium effects of the quota are:px=$2; domestic production and consumption are 50x; the revenue is zero.5.the partial equilibrium effects of the quota are:px=$1; consumption is 70x, production is 30x, and revenue is zero.6.the partial equilibrium effects of a negotiated export quota of 30x are:7.8.px=$4; domestic production is 40x, of which 10x are consumed at home. an export tariff or quota, as an import tariff or quota, affects the price of the commodity and domestic consumption and production. but the effects are the opposite. see figure 1. the equilibrium price of the commodity is px=oc and the equilibrium quantityis qx=ob in figure 1.9.10.11.if the supply curve of the commodity in figure 1 referred to a cartel of exporters acting as a monopolist, px=of and qx=oa (see figure 1). px is higher and qx smaller when exporters behave as a monopolist. a) the monopolist should chargep1=$4 in the domestic market and p2=$3 in figure 9-5 in appendix a9.2.b) this represents the best, or optimal distribution of sales between the twomarkets because any other distribution of sales in the two markets gives lessrevenue.12. see figure 2. to the left of point a, the domestic firm faces higher long-run average costs of production (lacd) than the foreign firm (lacf). to the right of point a the opposite is the case.13. a) if the entries in the top left-hand corner of table 9-5 were changed to +10,+10, then both boeing and airbus would produce the aircraft without anysubsidy, and so no strategic trade and industrial policy would be needed in the u.s. or europe.b) if the entries in the top left-hand corner of table 9-5 were changed to +5, +0, then both boeing and airbus would produce the aircraft without any subsidy, and so no strategic trade and industrial policy would be needed in the u.s. or europe. *note that even though airbus only breaks even, in economics we includea normal return on investment as part of costs. thus, airbus wouldremain in business because it would earn a normal return on investment.c) if the entries in the top left-hand corner of table 9-5 were changed to +5, -10,then both boeing produces and airbus does not produce without any subsidy.with a subsidy of at least $10 million per year, however, airbus would enterthe market and lead to a loss of $100 million for boeing unless the u.s.government would provide a subsidy of at least $5 million per year to boeing.14.the answer to part (a) and (b) are presented in appendixa9.3.app. 1. see figure 3 on page 90.app. 3. by imposing a 100% tax on the production of commodity x and giving it as a subsidy to producers of commodity y.【篇三：国际经济学第九版英文课后答案第18单元】>open-economy macroeconomics: adjustment policiesoutline*18.1 introductioncase study 18-1: government, private sector, and current account balancesin the g-7 countries*18.2 internal and external balance with expenditure-changing andexpenditure-switching policies18.3 equilibrium in the goods market, in the money market, and in thebalance of payments18.4 fiscal and monetary policies for internal and external balancewith fixed exchange rates18.4a fiscal and monetary policies from external balance and unemployment 18.4b fiscal and monetary policies from external deficit and unemployment 18.4c fiscal and monetary policies with elastic capital flows18.4d fiscal and monetary policies with perfect capital mobilitycase study 18-2: relationship between u.s. current account and budget deficits18.5 the is-lm-fe model with flexible exchange rates18.5a is-lm-fe model with flexible exchange rates and imperfect capital mobilitycase study 18-3: effect of u.s. fiscal policy in the united states and abroad 18.5b is-lm-fe model with flexible exchange rates and perfect capital mobilitycase study 18-4: effect of monetary policy in the u.s. and other oecdcountries*18.6 policy mix and price changes18.6a policy mix and internal and external balance18.6b evaluation of the policy mix with price changes18.6c policy mix in the real worldcase study 18-5: u.s. monetary and fiscal policies in the 1980s and early 1990s*18.7 direct controls18.7a trade controls18.7b exchange controlscase study 18-6: direct controls on international transactions around the world18.7c other direct controls and international cooperationappendix: a18.1 derivation of the is curvea18.2 derivation of the lm curvea18.3 derivation of the fe curvea18.4 mathematical summaryinternal balance transaction demand for moneyexternal balance speculative demand for moneyexpenditure-changing policiesbp curveexpenditure-switching policiesphillips curveprinciple of effective market classification exchange controls is curve multiple exchange rateslm curve1. this is one of the most important and challenging of the chapters. sections 1-2 and 6-7 are core sections and should be covered in any international economics course. sections 3-5 introduce the is-lm-bp model and may be skipped ifintermediate macroeconomics is not a requirement for the course. this is up to the instructor, however.2. in the first lecture, i would cover sections 1 and 2 and assign problems 1-3. the most important and difficult part hereis the swan diagram. if students are to know anything about economic policies to correct internal and externalimbalances, this is it.3. sections 3-5 require two classes to be covered adequately if students hadintermediate macroeconomics. otherwise, it would take three classes, or they can be skipped. if sections 3-5 are covered, i would assign problems 4-11 and go over some of these in class to make sure that students fully understand the model and the policies that can be used to correctinternal and external imbalances.4. i would cover section 6 in the next class and assign problems 12-14. the most important aspect of this section is the explicit recognition of price stability as the third important objective of nations and the problems that this creates with the policies at hand to achieve internal and external balance completely. i would also cover case studies 18.1-18-3.5. i would leave section 7 for students to cover by themselves. the section isimportant but mostly descriptive and students to read it on their own and bring questions to class.1. c1 increase devaluec4 increase revaluec7 decrease revaluec10 decrease devalue2. c2 increase nonec5 nonerevaluec8 decrease nonec11 nonedevalue3. c3 increase revaluec6 decrease revaluec9 decrease devaluec12 increase devalue4. a.the nation faces a surplus at ye=1,000 because p isbelow point e.b.at ye=1,000 and with a mpm=0.15, the nation faces a surplus of(200)(0.15)=30.5.the nation of problem 4 can reach full employment with external balance with the expansionary fiscal policy that shiftsis upward until it crosses the bp line at point f and the tight monetary policy that shifts lm upward until it also crosses the bp line at point f.6. the nation requires the expansionary fiscal that shifts the is curve up until it crosses the bp curve at point f and the tight monetary policy that shifts up the lm curve until it crosses the bp curve at point f.see figure 1.7. if the full-employment level of national income is ye=1,000, the nation requires the expansionary fiscal policy that shifts the is curve up until it crosses the bp curve at point b and the tight monetary policy that shifts up the lm curve until it crosses the bp curve at point b.see figure 2.8. a. if the bp curve were flatter than the lm curve, the nation would require theexpansionary fiscal policy that shifts the is curve up until it crosses the pb curve at point f and the easy monetary policy that shifts down the lm curve until it crosses the bp curve at point f.see figure 3.b.9.when the bp curve is flatter than the lm curve, the nation requires an easy rather than a tight monetary policy to achieve internal and external balance simultaneously. with perfectly elastic international capital flows, the bp line would be horizontal and monetary policy would be completely ineffective. the nation could reach internal and external balance with the appropriate expansionary fiscal policy only.。
国际经济学第九版课后答案
FIGURE 4.1
10. See Figure 4.3. In Figure 4.3, Nation 2 is the small
nation, and we magnified the portion of the offer curve of Nation 1 (the large nation) near the origin (where Nation 1’s offer curve coincides with PA = 1/4, Nation 1’s pretrade-relative commodity price with trade). This means that Nation 2 can import a sufficiently small quantity
some import restrictions. These topics are discussed in detail in Chapter 9.
Chapter 2
2. In case A, the United States has a comparative advantage in wheat and the United Kingdom in cloth. In case B, the United States has a comparative advantage in wheat and the United Kingdom in cloth. In case C, the United States has a comparative advantage in wheat and the United Kingdom in cloth. In case D, the United States and the United Kingdom have a comparative advantage in neither commodity.
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CHAPTER 1*(Core Chapter)INTRODUCTIONOUTLINE1.1 Importance of International EconomicsCase Study 1-1: The Dell and Other PCs Sold in the United States Are All ButAmericanCase Study 1-2: What Is an "American" Car?1.2 International Trade and The Nation's Standard of LivingCase Study 1-3: Rising Importance of International Trade to the United States 1.3 The Major U.S. Trade Partners: The Gravity Model1.4 The Subject Matter of International Economics1.5 Purpose of International Economic Theories and Policies1.6 Current International Economic Challenges1.7 The Globalization Challenge1.8 Organization and Methodology of the BookAppendix: A1.1 Basic International Trade DataA1.2 Sources of Additional International Data and InformationKey TermsInterdependence Adjustment in the balance of payments Gravity model MicroeconomicsInternational trade theory MacroeconomicsInternational trade policy Open economy macroeconomicsNew protectionism International financeForeign exchange markets GlobalizationBalance of payments Anti-globalization movementLecture Guide1. As the first chapter of the book, the general aim here is simply to define the fieldof study of international economics and its importance in today's interdependent world.The material in this chapter can be covered in two classes. I would utilize oneclass to cover Sections 1 to 4 and the second class to cover Sections 5 to 8. Iwould spend most of the second class on Section 6 on the major currentinternational economic challenges facing the United States and the world todayand to show how international economics can suggest ways to solve them. Thisshould greatly enhance students' motivation.Answer to Problems1. a) International economic problems reported in our daily newspapers are likely toinclude:•trade controversies between the United States, Europe, Japan, and China;•great volatility of exchange rates;•Increasing international competition from China and fear of job losses in the United States and other advanced countries.•structural unemployment and slow growth in Europe, and stagnation in Japan;•financial crises in emerging market economies;•restructuring problems of transition economies;•deep poverty in many developing nations in the world.b) Can result in trade restrictions or even a trade war, which reduce the volumeand the gains from trade;•discourage foreign trade and investments, and thus reduce the benefits from trade;•Can result in trade restrictions or even a trade war, which reduce the volume and the gains from trade;•reduces European and Japanese imports and the volume and the benefits from trade;•financial crises in emerging market economies could spread to the United States;•can lead to political instability, which will adversely affect the United States;•can lead to political instability in these countries - which also adversely affect the United States.c) Can result in your paying higher prices for imported products;•lead to great fluctuations in the price of imported products and cost of foreign travel;•Can lead higher prices for imported products and increases the chances that you will have to change jobs;•can lead you to support demands for trade protection in the United States;•can reduce the value of your investments (such as a stocks) in the United States;•can lead to your paying higher taxes for the United States to respond to these threats;•can result in your paying higher taxes to help these nations.2. a) Five industrial nations not mentioned are: Italy, France, Canada, Austria, andIreland.b) See Table 1A.c) Smaller nations, such as Ireland and Austria, are more interdependent than thelarger ones. Note that interdependence was measured by the percentage of thevalue of imports and exports (line 98c and 90c, respectively in IFS) to GDP (line99b).Table 1AEconomic Interdependence asMeasured by Imports and Exports*Source: International Financial Statistics(Washington, D.C., IMF, March 2006).3. a) Five developing nations not mentioned in the text are: Brazil, Pakistan,Colombia, Nepal, and Tunisia.b) See Table 1B.c) In general, the smaller the nation, the greater is its economic interdependence.Note that interdependence was measured by the percentage of the value ofimports and exports (line 98c and 90c, respectively in IFS) to GDP (line 99b).Table 1BEconomic Interdependence asMeasured by Imports and Exports*Source: International Financial Statistics(Washington, D.C., IMF, March 2006).4. Trade between the United States and Brazil is much larger than trade between theUnited States and Argentina. Since Brazil is larger and closer than Argentina, this trade does follow the predictions of the gravity model.5. a) Mankiw’s Economics (4th., 2007) includes the following microeconomicstopics:•The market forces of demand and supply;•elasticity and its application;•the theory of consumer choice;•consumers, producers, and the efficiency of markets;•the costs of production;•firms in competitive markets;•monopoly;•oligopoly;•monopolistic competition;•markets for the factors of production;•the demand for resources;b) Just as the microeconomics parts of your principles text deal with individualconsumers and firms, and with the price of individual commodities and factors of production, so do Parts One and Two of this text deal with production andconsumption of individual nations with nations with and without trade, and withthe relative price of individual commodities and factors of production.c) Mankiw’s Economi cs (4th., 2007) includes the following microeconomics topics:measuring a nation’s income and the cost of living;•production and growth;•savings investment and the financial system;•unemployment and its natural rate;•the monetary system, growth and inflation;•money growth and inflation;•open-economy macroeconomics: basic concepts;• a macroeconomic theory of the open economy;•aggregate demand and aggregate supply;•the influence of monetary and fiscal policy on aggregate demand;•the short-run trade off between inflation and unemployment•five debates over macroeconomic policy.d) Just as the macroeconomics parts of your principles text deal with the aggregatelevel of savings, consumption, investment, and national income, the general price level, and monetary and fiscal policies, so do Parts Three and Four of this textdeal with the aggregate amount of imports, exports, the total international flow of resources, and the policies to affect these broad aggregates.6. a) Consumer demand theory predicts than when the price of a commodity rises(cet. par.), the quantity demanded of the commodity declines.When the price of imports rises to domestic consumers, the quantity demanded of exports can be expected to decline (if everything else remains constant).7. a) A government can reduce a budget deficit by reducing governmentexpenditures and/or increasing taxes.b) A nation can reduce or eliminate a balance of payments deficit by taxingimports and/or subsidizing exports, by borrowing more abroad or lending less toother nations, as well as by reducing the level of its national income.8. a) Nations usually impose restrictions on the free international flow of goods,services, and factors. Differences in language, customs, and laws also hamperthese international flows. In addition, international flows may involve receipts and payments in different currencies, which may change in value in relation to oneanother through time. This is to be contrasted with the interregional flow ofgoods, services, and factors, which face no such restrictions as tariffs and areconducted in terms of the same currency, usually in the same language, and under basically the same set of customs and laws.b) Both international and interregional economic relations involve the overcomingof space or distance. Indeed, they both arise from the problems created bydistance. This distinguishes them from the rest of economics, which abstractsfrom space and treats the economy as a single point in space, in which production, exchange, and consumption take place.9. We can deduce that nations benefit from voluntarily engaging in internationaltrade because if they did not gain or if they lost they could avoid those losses bysimply refusing to trade. Disagreement usually arises regarding the relativedistribution of the gains from specialization in production and trade, but this does not mean that each nation does not gain from trade.10. International trade results in lower prices for consumers but harms domesticproducers of products, which compete with imports. Often those domesticproducers that stand to lose a great deal from imports band together to pressurethe government to restrict imports. Since consumers are many and unorganizedand each individually stands to lose only very little from the import restrictions,governments often give in to the demands of producers and impose some importrestrictions. These topics are discussed in detail in Chapter 9.11. A nation can subsidize exports of the commodity to other nations until it drivesthe competing nation's industry out of business, after which it can raise its priceand benefit from its newly acquired monopoly power.Some economists and politicians in the United States have accused Japan of doing just that (i.e., of engaging in strategic trade and industrial policy at the expense of U.S. industries), but this is a very complex and controversial aspect of tradepolicy and will be examined in detail in Chapter 9.12. a) When the value of the U.S. dollar falls in relation to the currencies of othernations, imports become more expensive for Americans and so they wouldpurchase a smaller quantity of imports.b) When the value of the U.S. dollar falls in relation to the currencies of othernations, U.S. exports become chapter for foreigners and so they would purchase a greater quantity of U.S. exports.Multiple-Choice Questions1. Which of the following products are not produced at all in the United States?*a. Coffee, tea, cocoab. steel, copper, aluminumc. petroleum, coal, natural gasd. typewriters, computers, airplanes2. International trade is most important to the standard of living of:a. the United States*b. Switzerlandc. Germanyd. England3. Over time, the economic interdependence of nations has:*a. grownb. diminishedc. remained unchangedd. cannot say4. A rough measure of the degree of economic interdependence of a nation is given by:a. the size of the nations' populationb. the percentage of its population to its GDP*c. the percentage of a nation's imports and exports to its GDPd. all of the above5. Economic interdependence is greater for:*a. small nationsb. large nationsc. developed nationsd. developing nations6. The gravity model of international trade predicts that trade between two nations is largera. the larger the two nationsb. the closer the nationsc. the more open are the two nations*d. all of the above7. International economics deals with:a. the flow of goods, services, and payments among nationsb. policies directed at regulating the flow of goods, services, and paymentsc. the effects of policies on the welfare of the nation*d. all of the above8. International trade theory refers to:*a. the microeconomic aspects of international tradeb. the macroeconomic aspects of international tradec. open economy macroeconomics or international financed. all of the above9. Which of the following is not the subject matter of international finance?a. foreign exchange marketsb. the balance of payments*c. the basis and the gains from traded. policies to adjust balance of payments disequilibria10. Economic theory:a. seeks to explain economic eventsb. seeks to predict economic eventsc. abstracts from the many detail that surrounds an economic event*d. all of the above11. Which of the following is not an assumption generally made in the study of international economics?a. two nationsb. two commodities*c. perfect international mobility of factorsd. two factors of production12. In the study of international economics:a. international trade policies are examined before the bases for tradeb. adjustment policies are discussed before the balance of paymentsc. the case of many nations is discussed before the two-nations case*d. none of the above13. International trade is similar to interregional trade in that both must overcome: *a. distance and spaceb. trade restrictionsc. differences in currenciesd. differences in monetary systems14. The opening or expansion of international trade usually affects all members of society:a. positivelyb. negatively*c. most positively but some negativelyd. most negatively but some positively15. An increase in the dollar price of a foreign currency usually:a. benefit U.S. importers*b. benefits U.S. exportersc. benefit both U.S. importers and U.S. exportersd. harms both U.S. importers and U.S. exporters16. Which of the following statements with regard to international economics is true?a. It is a relatively new field*b. it is a relatively old fieldc. most of its contributors were not economistsd. none of the above。