4 Intl Econ Notes

4 Intl Econ Notes - Intl Economics Notes 4/8/09 Specific...

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Int’l Economics Notes 4/8/09 Specific Factors Model W=Psubm*MPLsub m W= P sub a*MPLsuba A= ag m=manufacturing Lsub a+ Lsubm=L See graphs in notebook This model does not deal with dynamic issues like time; we’re simply modeling Tariff for ag imports would be preferred policy for landowners o When looking at policy prefs, must consider effects on your sector as well as sectors with which you compete for factors of production Sugar cane and sugar beets are only thing that can be used to produce sugar, in US, very few sugar producers so its easy for them to get together and bring lobby plan into action o However, many industries are adversely affected just a little bit, and difficult to get them together to lobby and consumers pay just a few cents more for something so few will oppose the sugar lobby Capitalists will protect themselves from other sector lobbies that could hurt you o They do this by making it difficult for labor to move between sectors, so
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This note was uploaded on 12/27/2009 for the course IRPS IRCO 403 taught by Professor Gordonhansonandtakeohoshi during the Spring '09 term at UCSD.

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4 Intl Econ Notes - Intl Economics Notes 4/8/09 Specific...

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