International Trade

356 Pages·2013·25.29 MB·English

by  John McLaren

INTERNATITORADNEAL
ECONOMICA NALYSIOSF
GLOBALIZATIAONND POLICY
johnM cLaren
Univeorfs Viityr ginia
WILEY
VP& EXECUTIPVUEB LISHER GeorHgoeff man
EXECUTIVE EDITOR JoeHlo llenbeck
CONTENETD ITOR JennMiafneira s
ASSISTANT EDITOR CourtLnuezyz i
EDITORIAASLS ISTANT EriHcoar owitz
ASSOCIADTIREEC TOR OFM ARKETING AmyS cholz
SENIOMRA RKETINGM ANAGER JesCsreu z
PRODUCDTE SIGNER GreCgh aput
SENIOMERD IA SPECIALIST EleSnaan Mtaari a
PRODUCTIMOANN AGER LuciBluloen ocore
SENIOPRR ODUCTIEODNI TOR SujHionn g
PHOTOR ESEARCHER ElliWnaogrn er
SENIODRE SIGNER MaureEeinde
COVERP HOTO L.V esHto,u stPoinl Aostsso ciation
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ISBN-91738:- 0-470-40879-7
Prinitnte hdUe n itSetda toefAs m erica
10 9 8 7 6 5 4 3 2 1
ToE llaK,e nnanA,l eva,n do,f c oursteo,M om.

ABOUT THEA UTHOR
JohnM cLaren'rse searhcahsr angeadc rostsh ef ielodfsi nternatiotnraald e,
developmienndtu,s troiragla nizaatinodnp ,o liteiccoanlo mayn,d h asa ppeariend
theA mericEacno nomiRce vieQwu,a rteJroluyrn aolf E conomitchse,R evieowf
Economic Staunddai r easn,g oefo thero utleHtesr .e ceihviePsdh Da tPr inceton in
1992h,a st augahttt hUen iversoifVt iyr ginia2 s0i00na,cn eda to net imoer a nother
hasa lstoa ugahttPr incetoYna,l eC,o lumbitah,eU niversoifMt ayr ylanda,n d­
fartheasfti eld-Utnhiev ersoiftW yo rldE conomayn dD iplomaicnyT ashkent,
Uzbekistan.

PREFACE
Approach
Thiiss a textbofoork u ndergradMuBaAt,ea ,n dM astero'fPs u blAidcm in­
istratcioounr siensi nternatieocnoanlo miIctsi .s a ppropritaote ei thae r
one-semecsotuerrsi eni nternatieocnoanlo miwcist thw oo rt hrewee ekosf
macroeconotmoipcisoc rsa c oursspee cialiiniz netde rnatitornaadTleh .i tse xt
covearlsol f t hec onventitohneaoltr hya utn dergradauraeet xepse ctteold e arn
ina couroseft hasto rbtu,tp resenitnea dr adicadlilffye rewnaty A. standard
courisnei nternatitornaadwlei lplr eseans te quenocfme o dels-tRhiec ardian
models,p ecifafcitco rHse,c kscher-Oahnldia n fe,w others-follouwpi ng
eacthh eoretmiocdaelwl i tahn a pplicattooi noeno rm orep oliqcuye stioorn s
witah d iscussoifeo mnp irical eviTdheitnsic mee.- temsettehdow do rkfsa irly
wellp,a rticulwairtlhhy i ghlmyo tivatsetdu denbtusti, t s ufferfrso m two
importlanitm itattihoaInth s a ven oticaeftde lro negx perience.
• Thea bsorptoifto hnte h eosryu fferfrso m a lacokf e nthusibaescma,u se
for mosstt udenittis sd iffitcous luts tamiont ivattihorno utghhem any
technidceatla irlesq uirteodu ndersttahnedm odelwse llb,e foret he
usefulnofet shsem odehla sb eene stabliisnht ehdem indo ft hes tudent.
• Thea pplicoaftt hiteoh ne osryuff erbse cautshees tudetnetn dtsot hinokf
"theorayn"d" policayst" w od ifferetnotp icwsh,i crhe fert oe acoht her
butd on otd epenodn e acoht heirna nyc ruciwaaly O.ft ent,h er eal-world
applicatairoepn rse senitnet de xbto xewsh,i cshi gntaolt hes tudetnhtast
theayr en otp arotft heco rmea terainadla ruen likteolb yeo nt hee xamI.
havfoeu ndt haitnp ractsitcued,e tnetnstd os uffetrh routghhte h eortyh,e n
perukp s omewhdautri ndgi scussoifpo onl iccoyn trovebrustig eesn,e rally
faitlom akea s troncgo nnectbieotnw etehnet woW.h en,a tt heen do fm y
coursIeh ,a vea ssignae sdh orwtri tteans signmiennw th icsht udeanrtes
requitroea dn alyazr ee al-wotrralddep olicIhy a,v foeu ndt haetv esnt u­
dentwsh oh avuen dersttohoetd h eoretmiocdaellr se asonawbellsyli mply
don otu set hemi na nalyzrienagl -woprrlodb lePmust.d ifferenutsliy,n g
economtihce oirsya d ifferesnktifr lolm merelyu ndersteacnodnionmgic
theorayn,do ure conomiccosu rsoeusg httoa imt ot eacthh issk ill.
Int hitse xIth aveu sewdh atI c altlh ei nvertseicohnn iIqi nutreo:d uac e
real-woprolldip cryo blaetmt hbe eginonfie ancgth o piacn,ds pensdo met ime
presenttihnekg e yfa ctsan d backgrousnhdo,w intgh es tudenwthsy the
probleimsi mportant, aac hcieervtialniegnv eolfe motionianlv estmienn t
thep oliqcuye stiIot nh.e pnr eseonnteo rm orek eya rgumentthsaa tr em ade
ina nsweritnhgeq uestiboya nd vocafotreo sn ea nsweorra nothaenrd,t heinn,
thper oceosfes l ucidatthipena gr ticaurlgaru meInw tan tt oh ighliIgp hrets,e nt
PREFACE
at heoretmiocdaeltl h aitsn ecestsoau ryn derstthaaantrd g umeInnt th.iws a y,
the theorym odeil sn ots eparafrtoem ani nquiirnyt thoe reawlo rldb,u ti ti s
presenatteth de outsaesta tooforl u nderstantdhiewn ogr lda,n dt hes tudents
appreciiatat sea possibsloel utitooa nn i mportraenatl -woqruleds tion.
SincIeb egauns intgh itse chnitqoup er esemnyt c oursaett heU niversoift y
VirginIi haa,v e fouan sdh arpi mprovemeinnst t udenetnsg'a gemewnitth
them ateri(aalnm dy owne njoymeonfit t E)a.c hm ajotrh eoretiidceacala nb e
motivabteyad v ivipdr oblefrmo m the reawlo rlFdo.r e xamplIei ,n trodutchee
Ricardimaond enlo ta sa t heoorfyw hyn atiotnrsa dieng enerbault,a sp arto f
thea nswetrot heq uesti"oSnh:o ulNdi gerpiuar susee lf-sufficiinfoe ondc?y"
Theg overnmenotfN igerhiaasi ndeehda dfo ods elf-suffiacsai nee nxcpyl icit
goalfo r manyy earsa,n di nf acfotr severyaela risn th e 1980bsa nnerdi ce
imporatssa s tetpo a chieviitnS.go mea rgumenctasnb em adei nfa voro ft his
sorotf p oliciyns omec asewsh,i cIh n oteb,u te conomiosvtesr whelmingly
rejethcits a sh elpfuplo licbye,c ausietd eniethse counttrhye b enefiotfs
specializoantt ihoebn a siosf c omparatiavdev antaTghee.R icardiamno del
makest halti noef a rgumeanstc leaarsi tc anb e,i ncludthien go bservation,
surprisitnogm anyn oneconomithsattsa , c ountmrayy wellb oositt foso d
consumptiboyn a bandonifonogd self-sufficbieecnacuys,oe f t heh igher
incometsh arte sufrlotm theg ainfrso m tradIen.th isw ay,t heR icardimaond el
unfortunatbeultly i terbaelcloym easm attoefrl ifea ndd eatha,n dv astmloyr e
interesttosi tnug dentthsai nf i tw asa merea bstraecxte rcise.
Coverage
Althoutghh em anneorf p resentaitsiu onnu suaaln,d th e tabloef c ontents
showass erioefsr eal-woprolldi pcryo blermasth etrh athne oretitcoapli ctsh,e
textbocookn taitnhsfue l ls eotft heoremtoidceaclolsn taiinnea dn ys tandard
internatitoenxatlb oporke,s enitnefudl aln alyrtiigcAoasrla .r esuolnte,m ight
weliln terptrheivtso lumaes a conventitornaadtleh eotreyx tboiondk i sguise,
althouIgh ho pei tcso ntributwiiolbnle g reattehra tnh aIth .a vel aiodu ti nth e
accompanytiwnogt ablwehsi cmho deils c overiende acchh aptTehre.T heory
Guidseh owas b rielfi sotfth e mainth eoriyd eawsi,t thh ec haptleorc atoifo n
eacohn ea,n dth e ChaptLeirs wti tDhe tailGeudi dteo T heorCyo ntensthso ws
thet heorcyo nteinnte achc hapter.
Technical Level
Thet echnilceavleo lft het exitsm oderatTeh.et exdto enso tu sec alculbuust,
manym odelisn volthvee s imultanseooluust iooftn w ol ineeaqru atiwoinths
twou nknownasn da l ootf f airellya bordaitaeg raamrsea nalyzweidt ahl ootf
geometrKye.y m icroeconotmoioclar se definebde foreb einugs eds,o o ne
couluds et hec ourswei tohn layPri nciplecso ursaesa p rerequiaslithtoeu,gI h
thinkt hastt udenatrsel iketloyg ett hem osto uto fi ti fth eyh avea lready
completiendt ermedmiiactreo economTihceas n.a lyosfith se modelissf airly
detailbeudtI, havefo undth atb uildienagc hc haptaerro unad m otivating
exampleen hancsetsu denwtisl'l ingtnoep suss ht hroudgeht aielqeudi librium
analysIinst .h aste nsthee, factuamla teritahlab te ginesa chc haptaenrd t he
theoretieclaalb oratthiaomtnak esu pt heb ulokf t hec haptsehro ulbdes eeans
complemenntosts, u bstitutes.