Model assumptions ch 41 pg 95101 2 no trade

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Unformatted text preview: lobalization on Factor Prices: • • • • • Immigration in the short run (Ch. 5.1, pg. 129 ­136) FDI in the short run (Ch. 5.2, pg. 146 ­149) HECKSCHER ­OHLIN MODEL: 1. Model assumptions (Ch. 4.1, pg. 95 ­101) 2. No Trade Equilibrium (Ch. 4.1, pg. 101 ­103) 3. Free Trade Equilibrium (Ch. 4.1, pg. 103 ­108) • Determine Export Supply from Home Market Trade Equilibrium • Determine Import Demand from Foreign Market Trade Equilibrium • Find the Relative Price of Goods in the Trade Equilibrium • Patterns of Trade: The Heckscher ­Ohlin Theorem 4. Effects of Trade on Output and Factor Prices (Ch. 4.2, pg. 110 ­118) • Determine Economy ­Wide Relative Demand for Labor • Effect of a change in price on the relative demand for labor • Determine the changes in real wage and real rental rate: Stolper ­Samuelson Theorem 5. Effects of Other Forms of Globalization on Output and Factor Prices: • Immigration in the long run: Rybczynski Theorem (Ch. 5.1, pg. 137 ­143) • FDI in the long run (Ch. 5.2, pg. 149 ­153)...
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This document was uploaded on 01/18/2014.

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