lec_14_15_111B - ECN 111B US Economic History since the ECN...

Info icon This preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Lectures 14 & 15: International Trade and the Lectures 14 & 15: International Trade and the US Economy US Economy ECN 111B: US Economic History since the ECN 111B: US Economic History since the Civil War Civil War Winter 2010 Winter 2010
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Lectures 14 & 15 Outline Lectures 14 & 15 Outline Theory: The Case for (free) International Trade Comparative Advantage: What did the US trade internationally? Was the US open to trade? What impact did tariffs have on US Growth The “infant industry” argument for tariffs
Image of page 2
KEY Readings for Today’s KEY Readings for Today’s Lecture Lecture Essential Reading: Walton and Rockoff. 10th ed. pp. 403-408 Walton and Rockoff. 11th ed. pp. 368-374 Gavin Wright "The Origins of American Industrial Success, 1879-1940," American Economic Review , (Sept. 1990), pp. 651-658. (POSTED TO SMARTSITE) J. Bradford DeLong, "Trade Policy and America's Standard of Living: An Historical Perspective," in Susan Collins, ed., Trade and the American Worker (Washington, DC: Brookings Institution, 1998). (POSTED TO SMARTSITE)
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Key Points Key Points The US was a relatively closed economy The US was a not a free trade country US growth may have been retarded because of tariffs The US traded goods in which it had a comparative advantage
Image of page 4
Heckscher-Ohlin Trade Theory Heckscher-Ohlin Trade Theory 6 Assumptions Labor and other factors of production move freely European manufactures use labor intensively, US uses capital + natural resources Europe is “abundant” in labor USA is abundant in capital + natural resources There is free trade in international goods The technology for producing European and US goods is the same Tastes are the same across countries
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
International Trade: Graphically International Trade: Graphically Fine textiles (Europe) Automobiles Slope = Autarky Price (autos) /Price (textiles) Q (textiles) Q (US) A* = No int. trade
Image of page 6
International Trade: Graphically International Trade: Graphically Fine textiles (Europe) Sheet metal manufactures Slope = “World” Price (automobiles)/Price (textiles) Fine textile imports Exports of automobiles US consumption w/ international trade
Image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern