chapter03 who gains and who loses from trade（课件）- 《国际贸易(英文版) 》同步教学（人民大学版）

2024/1/20 1 Chapter Three Who Gains and Who Loses from Trade? Theory and Policy of International Trade 2024/1/20 Department of International Economics and Trade 2 3.1 Who Gains and Who Loses within a Country If countries gain from opening trade, why do free-trade policies have so many opponents year in and year out? Theory and Policy of International Trade 2024/1/20 3 3.1 Who Gains and Who Loses within a Country A full analysis of trade requires that we identify the winners and losers from freer trade. 2024/1/20 Theory and Policy of International Trade 2024/1/20 4 3.1 Who Gains and Who Loses within a Country This chapter examines the effect of trade on owners of production factors. 2024/1/20 Theory and Policy of International Trade 2024/1/20 5 3.1.1 Short-Run Effects of Opening Trade landlords and workers in wheat gain, landlords and workers in cloth lose landlords and workers in cloth gain, landlords and workers in wheat lose Theory and Policy of International Trade 2024/1/20 6 3.1.1 Short-Run Effects of Opening Trade So, in the short run, whether or not the factors’ owners gain is due to the industry that factors are employed. If factor is used in export-oriented industry, its owner will gain. If factor is used in import-competing industry, its owner will lose. Theory and Policy of International Trade 2024/1/20 7 3.1.2 The Long-Run Factor-Price Response In the long run, factors can move between sectors in response to differences in returns. Sellers of the same factor will eventually respond to the income gaps that have been opened up in the short run. Theory and Policy of International Trade 2024/1/20 8 3.1.2 The Long-Run Factor-Price Response In U.S. factors (labor, land) flow into wheat production In RST factors (labor, land) flow into cloth production 2024/1/20 Theory and Policy of International Trade 2024/1/20 9 3.1.2 The Long-Run Factor-Price Response In U.S. , price of l