EC 340 Final Exam Review
As a currency APPRECIATES, its products become more expensive abroad, and foreign products become less expensive at home. Home firms become less expensive. And vice versa Absolute purchasing power parity- in the long run, ex
Import Demand and Export Supply We have shown that trade benefits an economy in the aggregate, but likely harms some individual groups within the economy Virtually all countries limit trade using a variety of policy options In this lesson, we develop the
Econ 340
Lecture 1
Overview of the World Economy
Jobs in Political
Advocacy for
the
Public Interest
The US Public Interest Research Group is a consumer group that
stands up to powerful interests whenever they threaten our
health and safety, our financial
Econ 340
Lecture 1
Overview of the World Economy
Jobs in Political
Advocacy for
the
Public Interest
The US Public Interest Research Group is a consumer group that
stands up to powerful interests whenever they threaten our
health and safety, our financial
Econ 340
Lecture 2
Institutions of the
International Economy
Announcements
We will start discussing news next week, on
Tuesday Jan 22. You should be watching for
international economic news.
Powerpoint slides: I will post them
Before lectures
6 per pa
Econ 340
Lecture 3
Comparative Advantage and the
Gains from Trade
News: Jan 15-21
Walmart pledges to buy more in US - NYT: 1/16 | Proquest | FT: 1/16 | Proquest
Walmart announced that it will increase its sourcing of American-made products by $50 billion
Outline: US Trade Policies and
Institutions
Parts of the US Government that Handle Trade
Main Features of US Trade Policies
Econ 340
Lecture 8
US Trade Policies and
Institutions
Tariffs, Quotas, VERs
Escape Clause
Unfair Trade Laws
Trade Adjustment Assi
Econ 340
Lecture 4
Modern Theories and Additional
Effects of Trade
Outline
Sources of Comparative Advantage
The Heckscher-Ohlin Model
Main Idea
Intuition
Does the Theory Work?
Effects of Trade
Changes in Production
Factor Price Equalization
The N
Outline
Sources of Comparative Advantage
The Heckscher-Ohlin Model
Econ 340
Main Idea
Intuition
Does the Theory Work?
Lecture 4
Modern Theories and Additional
Effects of Trade
Effects of Trade
Changes in Production
Factor Price Equalization
The N
Econ 340
Lecture 5
Tariffs
News: Jan 22-28
Trade among developing countries now exceeds their trade with developed countries - Economist: 1/19 | Proquest
Recent data from World Bank, reported by The Economist, show that it is no longer true that poor cou
Econ 340
Lecture 9
World Trade Arrangements
and the WTO
Outline: World Trade Arrangements
and the WTO
World Trade Organization
History, as GATT
GATT Rounds
WTO Today
Functions
Current Issues
Seattle Protests and Beyond
Doha Round
Disputes
Lecture
Submittedbydeweerdt@msu.eduon10/22/20087:41:40PM
Homework8
PointsAwarded PointsMissed Percentage
19 0 100%
1. OfficialgovernmentstatisticspermitcalculationoftheaverageU.S.tariffratestartinginwhich year? A. 1776 B. 1795 C. 1821 D. 1865 E. 1911 Seethearticl
Increasing Opportunity Costs Two extreme assumptions about opportunity cost: Opportunity cost is finite and constant (Ricardian model) Implies there is only one unique price at which economy will be diversified (produce both goods)
Lesson 17 1
Opportunity
Some Mechanics of a Two-Factor Economy What kind of structure gives rise to a PPF that exhibits increasing opportunity cost? In this lesson, we continue to assume two goods, but we now also assume two inputs (factors of production)
Lesson 18
1
Call the tw
The H-O model: Definitions, Assumptions, Implications In this lesson, we set up the HeckscherOhlin model of trade The main focus is on providing the vocabulary necessary to understand the model We end the lesson with four implications of the model, but re
Contrasting the H-O model with the Ricardian model Why do we use a variety of models? Can different models both be "right?"
Lesson 20
1
The Ricardian model is useful for explaining the idea of comparative advantage and illustrating the gains from trade in
Proof of factor-price-equalization theorem In this lesson, we "prove" the factor-priceequalization theorem The "proof" is by way of example, and is therefore not completely general Generalization requires more advanced mathematical techniques
Lesson 21 1
Proof of Stolper-Samuelson theorem In this lesson, we "prove" the StolperSamuelson theorem The "proof" is by way of example, and is therefore not completely general Generalization requires more advanced mathematical techniques
Lesson 22 1
This lesson star
Proof of Rybczynski theorem In this lesson, we "prove" the Rybczynski theorem The "proof" is by way of example, and is therefore not completely general Generalization requires more advanced mathematical techniques
Lesson 23 1
Proof is strikingly similar t
Proof of Heckscher-Ohlin theorem In this lesson, we "prove" the HeckscherOhlin theorem The "proof" is by way of example, and is therefore not completely general Generalization requires more advanced mathematical techniques
Lesson 24 1
Proof follows on the
The Leontief Paradox Does empirical evidence provide support for the H-O model? How would one go about testing the predictions of the H-O model?
Lesson 25
1
First empirical investigation of H-O model undertaken by Wassily Leontief Paper published in the P
The Mystery of the Missing Trade In addition to predicting the pattern of trade, the formal H-O model also predicts the volume of trade Daniel Trefler (1995) was the first to note that the actual volume of trade is far less than that predicted by the mode
EC 340 International Economics S. Matusz Notes
Problem Set 1
Given the straight line PPF, the price of X in terms of Y is the same regardless of where the economy
produces (as long as it produces both goods)
The slope of the PPF (reflecting opportunity
EC 340
Exam 2
April 13, 2011
Instructions
Do not open the exam until instructed to do so.
Answer all 52 questions, each has equal weight.
Circle the letter of the alternative that best answers the question.
You may NOT use calculator, notes, book, or any
Problem Set 1
Given the straight line PPF, the price of X in terms of Y is the same regardless of where
the economy produces (as long as it produces both goods)
The slope of the PPF (reflecting opportunity cost) determines relative autarky price,
while de
EC 340
Exam 1
February 23, 2011
Instructions
Do not open the exam until instructed to do so.
Answer all 38 questions, each has equal weight.
Circle the letter of the alternative that best answers the question.
You may NOT use calculator, notes, book, or a
Survey of International Economics
(EC 340)
Spring 2011
Section 01
206 Old Horticulture
Tu, Th 1:00 pm 2:20 pm
DESCRIPTION
Hourly compensation for the average U.S. manufacturing employee was $33.53 in 2009. In that
same year, hourly compensation for the av