Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn ›...
Transcript of Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn ›...
![Page 1: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/1.jpg)
Public Affairs 856Trade, Competition, and
Governance in a Global EconomyLecture 3-4
1/30-2/4/2019
Instructor: Prof. Menzie ChinnUW MadisonSpring 2019
![Page 2: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/2.jpg)
Technological Parameters
• MPLw = 4• MPLc = 2• MPLw* = 1• MPLc* = 1
![Page 3: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/3.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 4: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/4.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 5: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/5.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 6: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/6.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 7: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/7.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 8: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/8.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 9: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/9.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 10: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/10.jpg)
Real Wage Determination
• Note that Pw/Pc is relative price = 2/3• Home Wage• MPLw = 4 bushels or • (Pw/Pc)×MPLw = 8/3 yards• Foreign Wage• (Pc*/Pw*)×MPLc* = 3/2 bushels or• MPLc* = 1 yard
![Page 11: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/11.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 12: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/12.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 13: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/13.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 14: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/14.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 15: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/15.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 16: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/16.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 17: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/17.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 18: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/18.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 19: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/19.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 20: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/20.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 21: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/21.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 22: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/22.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 23: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/23.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 24: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/24.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 25: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/25.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 26: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/26.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
![Page 27: Public Affairs 856 Trade, Competition, and Governance in a ...ssc.wisc.edu › ~mchinn › pa856_lecture3_4_s19.pdf · Public Affairs 856 Trade, Competition, and Governance in a Global](https://reader033.fdocuments.in/reader033/viewer/2022060315/5f0be9907e708231d432d4f1/html5/thumbnails/27.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers