1 Trade Facts and Gains From Trade

16
Cite as: Pol Antras, course materials for 14.581 International Economics I, Spring 2007. MIT OpenCourseWare (http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].

Transcript of 1 Trade Facts and Gains From Trade

Page 1: 1 Trade Facts and Gains From Trade

8/3/2019 1 Trade Facts and Gains From Trade

http://slidepdf.com/reader/full/1-trade-facts-and-gains-from-trade 1/16

Page 2: 1 Trade Facts and Gains From Trade

8/3/2019 1 Trade Facts and Gains From Trade

http://slidepdf.com/reader/full/1-trade-facts-and-gains-from-trade 2/16

Cite as: Pol Antras, course materials for 14.581 International Economics I, Spring 2007. MIT OpenCourseWare(http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].

Page 3: 1 Trade Facts and Gains From Trade

8/3/2019 1 Trade Facts and Gains From Trade

http://slidepdf.com/reader/full/1-trade-facts-and-gains-from-trade 3/16

 

Cite as: Pol Antras, course materials for 14.581 International Economics I, Spring 2007. MIT OpenCourseWare(http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].

Page 4: 1 Trade Facts and Gains From Trade

8/3/2019 1 Trade Facts and Gains From Trade

http://slidepdf.com/reader/full/1-trade-facts-and-gains-from-trade 4/16

Cite as: Pol Antras, course materials for 14.581 International Economics I, Spring 2007. MIT OpenCourseWare(http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].

Page 5: 1 Trade Facts and Gains From Trade

8/3/2019 1 Trade Facts and Gains From Trade

http://slidepdf.com/reader/full/1-trade-facts-and-gains-from-trade 5/16

Cite as: Pol Antras, course materials for 14.581 International Economics I, Spring 2007. MIT OpenCourseWare(http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].

Page 6: 1 Trade Facts and Gains From Trade

8/3/2019 1 Trade Facts and Gains From Trade

http://slidepdf.com/reader/full/1-trade-facts-and-gains-from-trade 6/16

           

   

   

 

        

 

 

 

   

   

           

   

 

            

Cite as: Pol Antras, course materials for 14.581 International Economics I, Spring 2007. MIT OpenCourseWare(http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].

Page 7: 1 Trade Facts and Gains From Trade

8/3/2019 1 Trade Facts and Gains From Trade

http://slidepdf.com/reader/full/1-trade-facts-and-gains-from-trade 7/16

 

     

 

     

   

          

Cite as: Pol Antras, course materials for 14.581 International Economics I, Spring 2007. MIT OpenCourseWare(http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].

Page 8: 1 Trade Facts and Gains From Trade

8/3/2019 1 Trade Facts and Gains From Trade

http://slidepdf.com/reader/full/1-trade-facts-and-gains-from-trade 8/16

X

X A = C A

C

good 1

good 2

p1/p2

Cite as: Pol Antras, course materials for 14.581 International Economics I, Spring 2007. MIT OpenCourseWare(http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].

Page 9: 1 Trade Facts and Gains From Trade

8/3/2019 1 Trade Facts and Gains From Trade

http://slidepdf.com/reader/full/1-trade-facts-and-gains-from-trade 9/16

   

 

   

 

     

  

              

Cite as: Pol Antras, course materials for 14.581 International Economics I, Spring 2007. MIT OpenCourseWare(http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].

Page 10: 1 Trade Facts and Gains From Trade

8/3/2019 1 Trade Facts and Gains From Trade

http://slidepdf.com/reader/full/1-trade-facts-and-gains-from-trade 10/16

   

                       

  ∑      ∑   

             

∑           ∑      ∑     

∑     

 

∑     

 

∑     

 

∑     

          

Cite as: Pol Antras, course materials for 14.581 International Economics I, Spring 2007. MIT OpenCourseWare(http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].

Page 11: 1 Trade Facts and Gains From Trade

8/3/2019 1 Trade Facts and Gains From Trade

http://slidepdf.com/reader/full/1-trade-facts-and-gains-from-trade 11/16

   

  

 

 

   ∑   

  

∑   

 ∑     ∑   

         

Cite as: Pol Antras, course materials for 14.581 International Economics I, Spring 2007. MIT OpenCourseWare

(http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].

Page 12: 1 Trade Facts and Gains From Trade

8/3/2019 1 Trade Facts and Gains From Trade

http://slidepdf.com/reader/full/1-trade-facts-and-gains-from-trade 12/16

         

     

   

∑     

Cite as: Pol Antras, course materials for 14.581 International Economics I, Spring 2007. MIT OpenCourseWare

(http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].

Page 13: 1 Trade Facts and Gains From Trade

8/3/2019 1 Trade Facts and Gains From Trade

http://slidepdf.com/reader/full/1-trade-facts-and-gains-from-trade 13/16

                 

                           

 

Cite as: Pol Antras, course materials for 14.581 International Economics I, Spring 2007. MIT OpenCourseWare

(http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].

Page 14: 1 Trade Facts and Gains From Trade

8/3/2019 1 Trade Facts and Gains From Trade

http://slidepdf.com/reader/full/1-trade-facts-and-gains-from-trade 14/16

 

   

Cite as: Pol Antras, course materials for 14.581 International Economics I, Spring 2007. MIT OpenCourseWare

(http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].

Page 15: 1 Trade Facts and Gains From Trade

8/3/2019 1 Trade Facts and Gains From Trade

http://slidepdf.com/reader/full/1-trade-facts-and-gains-from-trade 15/16

         

ρ 

ρ 

    

  /        

         

  ρ

 

  ∑  

   

  

   

 

 

∑    

 

  ∑  

   

 

 

∑         

       

Cite as: Pol Antras, course materials for 14.581 International Economics I, Spring 2007. MIT OpenCourseWare(http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].

Page 16: 1 Trade Facts and Gains From Trade

8/3/2019 1 Trade Facts and Gains From Trade

http://slidepdf.com/reader/full/1-trade-facts-and-gains-from-trade 16/16

∑      ∑        

∑  

  

    

    

  

        

         

      

       

Cite as: Pol Antras, course materials for 14.581 International Economics I, Spring 2007. MIT OpenCourseWare

(http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].