Specific Factors

Models of International Trade

International trade is a branch of economics, which, together with international finance, forms the larger branch of international economics. Several different models have been proposed to predict patterns of trade and to analyze the effects of trade policies such as tariffs. Some of these models have been in existence for many years.

The Ricardian model focuses on comparative advantage and is perhaps the most important concept in international trade theory. The following features of this model should be noted. In a Ricardian model, countries specialize in producing what they produce best. Unlike other models, the Ricardian framework predicts that countries will fully specialize instead of producing a broad array of goods. Also, the Ricardian model does not directly consider factor endowments, such as the relative amounts of labor and capital within a country.

The Heckscher-Ohlin model was produced as an alternative to the Ricardian model of basic comparative advantage. Despite its greater complexity it did not prove much more accurate in its predictions. However from a theoretical point of view its aim is to provide an elegant solution by incorporating the neoclassical price mechanism into international trade theory.

The theory predicts that countries will export those goods that make intensive use of locally abundant factors and will import goods that make intensive use of factors that are locally scarce. Empirical problems with the H-O model, known as the Leontief paradox, were exposed in empirical tests by Wassily Leontief who found that the United States tended to export labor intensive goods despite having a capital abundance.

In this model, labour mobility between industries is possible while capital is immobile between industries in the short run. The specific factors name refers to the given that in the short-run specific factors of production, such as physical capital, are not easily transferable between industries. The theory suggests that if there is an increase in the price of a good, the owners of the factor of production specific to that good will profit in real terms. Additionally, owners of opposing specific factors of production (i.e. labour and capital) are likely to have opposing agendas when lobbying for controls over immigration of labour. Conversely, both owners of capital and labour profit in real terms from an increase in the capital endowment. This model is perfect for understanding income distribution but awkward for discussing the pattern of trade. It is ideal for particular industries.

The Gravity model of trade presents a more empirical analysis of trading patterns rather than the more theoretical models discussed above. The gravity model, in its basic form, predicts trade based on the distance between countries and the interaction of the countries' economic sizes. The model mimics the Newtonian law of gravity which also considers distance and physical size between two objects. The model has been proven to be empirically strong through econometric analysis. Other factors such as income level, diplomatic relationships between countries, and trade policies are also included in expanded versions of the model.

Notes:

1. international economics – международная экономика (часть экономической науки, изучающая международные экономические отношения: торговлю, кредитование, миграцию ресурсов, интеграцию)

2. trade policy – торговая [внешнеторговая] политика

3.The Heckscher-Ohlin model – теория Хекшера-Олина

4. comparative advantage – сравнительное преимущество

5. Leontief paradox – парадокс Леонтьева (вывод о том, что вопреки теории Хекшера-Олина, капиталоизбыточная страна может экспортировать трудоемкую продукцию)

6. econometric analysis – эконометрический анализ (эконометрика – изучение экономических явлений на основе анализа данных с применением методов математики и статистики)

I. Прочитайте текст (без словаря).

II. Перепишите следующие предложения, определите в каждом из них видо-временную форму и залог глагола-сказуемого. Переведите предложения на русский язык.

1. Empirical problems with the Heckscher-Ohlin model were exposed in empirical tests by Wassily Leontief

2. Such factors as income level, diplomatic relationships between countries and trade policies are included in expanded versions of the gravity model.

3. The Gravity model can be used in econometric analysis.

4. Specific Factors model was designed to replace the preceding models of international trade.

5. Several theoretical models may be proposed to analyze the effects of trade policies.

III. Перепишите следующие предложения и переведите их на русский язык, обращая внимание на разные значения слов that, it, one.

1. It is possible for some countries to export those goods that make intensive use of locally abundant factors.

2. In the Heckscher-Ohlin model one can see an alternative to the Ricardian model of basic comparative advantage.

3. It is easier for developed contries to specialize instead of producing a broad array of goods.

4. This theory suggests that if there is an increase in the price of a good, the owners of the factor of production specific to that good will profit in real terms.

5. One should note, however, that this model is perfect for understanding income distribution but awkward for discussing the pattern of trade.

IV. Перепишите предложения и переведите их на русский язык, обращая внимание на разные значения глаголов to be, to have, to do.

1. It is possible for some countries to export those goods that make intensive use of locally abundant factors.

2. One way to digest this contradictory literature is to combine and assess these results in a single statistical analysis, called meta-analysis.

3. This theory does not set standards in the various countries, though its goal is to help harmonize economic laws.

4. Some of models of international trade have been in existence for many years.

5. According to this model, owners of such specific factors of production as labour and capital have opposing agendas when lobbying for controls over immigration of labour.

V. Перепишите следующие предложения и переведите их на русский язык, обращая внимание на бессоюзное подчинение.

1. Empirical analysis of trading patterns this theory presents must be used for understanding income distribution and discussing the pattern of trade.

2. The use of specific factors of labour and capital the corporation has made have been financed by shareholders investments.

3. The Newtonian law of gravity this model mimics considers distance and physical size between two objects.

4. The quantity of goods countries want to import depends on taxes and prices.

5. The specific factors this theory distinguishes are not easily transferable between industries.

VI. Перепишите следующие предложения и переведите их на руcский язык, обращая внимание на функцию инфинитива в предложении.

1. The Heckscher-Ohlin model is an attempt to produce an alternative to the Ricardian model of basic comparative advantage

2. The main purpose of several different models of international trade is to predict patterns of trade and to analyze the effects of trade policies such as tariffs.

3. The model requires countries to develop rules of origin to prevent imports from third countries from being transshipped through the member country with the lowest tariffs.

4. Three types of agreements were intended to stabilize the region after 1989.

5. Several different models have been proposed to predict patterns of trade and to analyze the effects of trade policies such as tariffs.

VII. Прочитайте, перепишите и письменно переведите следующий текст.

VIII. Ответьте письменно на следующие вопросы:

1. What does the Ricardian model of international trade focus on?

2. Who fully specializes in the Ricardian model?

3. What is the main purpose of the Heckscher-Ohlin model?

4. What is the Specific Factors model ideal for?

5. In what features do the Gravity model of trade and the Specific Factors model differ?

Вариант 3

Дата добавления: 2017-01-14