International Trade国际贸易英文版 期末复习题

Classicl trade theory

This table shows bushels of wheat and the yards of cloth that the US and the UK can produce with one hour of labor time under four different hypothetical situations.

UK US Suppose that the US exchange 4W for 4C with the UK a. How much does the US gain? b. How much does the UK gain?

c. What is the range for mutually beneficial trade?

Suppose that the US exchange 4W for 6C with the UK a. How much does the US gain? b. How much does the UK gain?

c. What is the range for mutually beneficial trade?

Neo-classical trade theory

The country of Pugelovia has an endowment (total supply) of 20 units of labor and 3 units of land, whereas the rest of the world has 80 units of labor and 7 units of land. Is Pugelovia labor-abundant? Is Pugelovi land-abundant? If wheat is land-intensive and cloth is labor-intensive, what is the Heckscher-Ohlin prediction for the pattern of trade between Pugelovia and the rest of the world?

From the following information calculate the total input shares of labor and capital in each dollar of cloth output: Direct labor input Deirect capital input Synthetic fiber input Cotton fiber input All inputs Cloth Output $0.50 0.20 0.10 0.20 $1.00 For Each Dollar of Synthetic Fiber Output $0.30 0.70 0.00 0.00 $1.00 Cotton Fiber Output $0.60 0.40 0.00 0.00 $1.00 Cloth 2 3 Wheat 1 4 Cloth is the only product that this country exports. The total input share of labor in producing $1.00 of import substitutes in this country is $0.55, and the total input share of capital is $0.45. Is this trade pattern consistent with the fact that this country is relatively labor-abundant and capital-scarce? Tariff

You have been asked to quantify the effects of a country’s tariff on sugar. The hard part of the work is already done: Somebody has esimated how many pounds of sugar would be produced, consumed, and imported by the country if there were no sugar duty. You are given the information shown in the table.

Situation with Import Tariff

Estimated Situation without Tariff - 1 -

Wold price Tariff Domestic price Domestic consumption (billions of pounds per year) Domestic production (billions of pounds per year) Imports (billions of pounds per year) Calculate the following measures: a. c.

$0.10 per pound $0.02 per pound $0.12 per pound 20 8 12 $0.10 per pound 0 $0.10 per pound 22 6 16 The domestic consumers’ gain from removing the tariff. The government tariff revenue loss.

b. The domestic producers’ loss from removing the tariff. d. The net efeect on national well-being.

You have been asked to quantify the effects of a country’s tariff on sugar. The hard part of the work is already done: Somebody has esimated how many pounds of sugar would be produced, consumed, and imported by the country if there were no sugar duty. You are given the information shown in the table. Wold price Tariff Domestic price Domestic consumption (billions of pounds per year) Domestic production (billions of pounds per year) Imports (billions of pounds per year) Calculate the following measures: e. f.

The domestic consumers’ gain from removing the tariff. The domestic producers’ loss from removing the tariff.

40 90 120 100 Situation with Import Tariff $5.00 per pound $1.00 per pound $6.00 per pound 160 Estimated Situation without Tariff $5.00 per pound 0 $5.00 per pound 190 g. The government tariff revenue loss. h. The net efeect on national well-being.

Non-tariff

Suppose that US has three choices about the trade policy of skates imported from Canada: Free trade with no protections; A special tariff of $80 per pair; A Voluntary export restraint. Calculate the US net national gains or losses from the tariff, and those from the VER, relative to free trade. Which of the three choices looks best for the US as a whole? Which looks worst?

(unit: millions pairs)

Free trade $80 Tariff VER - 2 -

World price Domestic price Imports

$200 $200 10 $170 $250 6 $170 $250 6 According to the information shown in the table, quantify the effects of a country’s import quota on sugar. Suppose that the government auctions the quota right. Calculate the following measures: a. c. Wold price Domestic price Domestic consumption (billions of pounds per year) Domestic production (billions of pounds per year) Imports (billions of pounds per year)

300 240 120 160 Calculate how much domesitic producers gain or loss form the quota.

Calculate how much the government receives in payment when it auctions the quota rights to import.

Situation without quota $0.10 per pound $0.12 per pound 420 Situation with quota $0.10 per pound $0.12 per pound 400 b. Calculate how much domesitic consumers gain or loss form the quota. d. Calculate the net national gain or loss from the quota.

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