Pugel 17e · International Trade
Chapter 6 · Scale Economies, Imperfect Competition, and Trade
Scale Economies, Imperfect Competition, and Trade Standard trade theory presented in Chapters 3-5 is based on perfect competition, with constant returns to scale at the level of the individual firm and constant or increasing cost of expanding production at the level of the industry. Comparative advantage predicts that countries will trade with other countries that are different (the source of the comparative cost differences) and that each country will export some products and import other, quite different products.
教材导入与手册摘录
Scale Economies, Imperfect Competition, and Trade
Standard trade theory presented in Chapters 3-5 is based on perfect competition, with constant returns to scale at the level of the individual firm and constant or increasing cost of expanding production at the level of the industry. Comparative advantage predicts that countries will trade with other countries that are different (the source of the comparative cost differences) and that each country will export some products and import other, quite different products. While much international trade conforms to these patterns, a substantial amount does not. Most obviously, industrialized countries trade a lot with each other, and in much of their trade each is exporting and importing similar products.
This chapter looks at three theories of trade based on market structures that differ from the standard theory. Each of these theories includes a role for scale economies, so that unit costs tend to decline as output increases. The first section of the chapter defines and examines scale economies, and it explains the difference between scale economies that are internal to the individual firm, and scale economies that are external to the firm but apply to a cluster of firms in a geographic area.
The next section of the chapter defines intra-industry trade (IIT), in which a country both exports and imports the same product or very similar product varieties. It explains how IIT is measured for an individual product, with examples shown in Figure 6.2. The importance of IIT in a country’s overall trade is the weighted average of the IIT shares for each of the individual products. Figure 6.3 provides original estimates of the overall importance of IIT.
核心知识点
Scale Economies
Scale Economies, Imperfect Competition, and Trade
- constant returns to scale
- , input use and total cost rise in the same proportion as output increases.
Monopolistic Competition and Trade
The remainder of the chapter presents the three additional trade theories. The first is based on monopolistic competition. While there may be a number of explanations of intra-industry trade, product differentiation seems to be the major one. The market structure of monopolistic competition is useful for analyzing the role of product differentiation.
- If scale economies are modest or moderate, there is room in the industry for a large number of firms.
- For products that are differentiated, a mild form of imperfect competition called
- monopolistic competition
Intra-Industry Trade
The next section of the chapter defines intra-industry trade (IIT), in which a country both exports and imports the same product or very similar product varieties. It explains how IIT is measured for an individual product, with examples shown in Figure 6.2. The importance of IIT in a country’s overall trade is the weighted average of the IIT shares for each of the individual products.
- Net trade
- for an industry is the difference between exports and imports of the industry’s product(s).
- Inter-industry trade
Economies of Scale
Scale Economies, Imperfect Competition, and Trade
- constant returns to scale
- , input use and total cost rise in the same proportion as output increases.
Oligopoly and Trade
The second theory is global oligopoly. In some industries, a few large firms account for most global sales, perhaps because internal scale economies are large. Although we do not have a single dominant full theory of oligopoly, we can make several observations about oligopoly and trade. First, scale economies tend to concentrate production in a few production sites.
- If scale economies are modest or moderate, there is room in the industry for a large number of firms.
- For products that are differentiated, a mild form of imperfect competition called
- monopolistic competition
案例与应用
b.With respect to short-run pressures on economic well-being, owners of ...
b.With respect to short-run pressures on economic well-being, owners of factors employed in industries that could expand exports are likely to support the policy shift, because the demand for these factors increases as firms attempt to expand production. Owners of factors employed in industries that will receive increased competition from imports are likely to oppose the policy shift (unless they feel that other benefits from such changes as greater product variety more than offset their direct income losses).
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b.With respect to short-run pressures on economic well-being, owners of factors employed in industries that could expand exports are likely to support the policy shift, because the demand for these factors increases as firms attempt to expand production. Owners of factors employed in industries that will receive increased competition from imports are likely to oppose the policy shift (unless they feel that other benefits from such changes as greater product variety more than offset their direct income losses). With respect to long-run pressures on economic well-being, the Stolper-Samuelson theorem is relevant. Owners of India's abundant factors of production are likely to support the policy shift, because they will gain real income. Owners of India's scarce factors are likely to oppose the shift, because they will lose real income (again, unless other benefits more than offset the direct
b.From the perspective of the well-being of the United States or ...
b.From the perspective of the well-being of the United States or Europe, a high-price equilibrium could be desirable because it involves setting high prices on export sales to other countries. This equilibrium also results in sales to domestic buyers at high prices, so there is some loss of pricing efficiency domestically.
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b.From the perspective of the well-being of the United States or Europe, a high-price equilibrium could be desirable because it involves setting high prices on export sales to other countries. This equilibrium also results in sales to domestic buyers at high prices, so there is some loss of pricing efficiency domestically. But the benefits to the country from charging high prices on exports and improving its terms of trade can easily be larger, so that overall the high-price equilibrium can be desirable.
Our third theory is based on scale economies that are external ...
Our third theory is based on scale economies that are external to the individual firm but arise from advantages of having a high level of production in a geographic area. With external scale economies (also called agglomeration economies), an expansion of demand (such as that caused by increased exports) can result in a lower unit cost for all producers in the area and a lower product price.
查看教材摘录
Our third theory is based on scale economies that are external to the individual firm but arise from advantages of having a high level of production in a geographic area. With external scale economies (also called agglomeration economies), an expansion of demand (such as that caused by increased exports) can result in a lower unit cost for all producers in the area and a lower product price. With free trade production tends to be concentrated in one or a few locations. In the shift from no trade to free trade, production in some locations would increase so that their unit costs and prices fall, while production in other locations would decrease or cease. It is not easy to predict which locations become dominant—luck, a large domestic market, or government policy may be important. The importing countries gain from trade, even if local production ceases, because consumers benefit from the
Standard trade theory presented in Chapters 3-5 is based on perfect ...
Standard trade theory presented in Chapters 3-5 is based on perfect competition, with constant returns to scale at the level of the individual firm and constant or increasing cost of expanding production at the level of the industry. Comparative advantage predicts that countries will trade with other countries that are different (the source of the comparative cost differences) and that each country will export some products and import other, quite different products.
查看教材摘录
Standard trade theory presented in Chapters 3-5 is based on perfect competition, with constant returns to scale at the level of the individual firm and constant or increasing cost of expanding production at the level of the industry. Comparative advantage predicts that countries will trade with other countries that are different (the source of the comparative cost differences) and that each country will export some products and import other, quite different products. While much international trade conforms to these patterns, a substantial amount does not. Most obviously, industrialized countries trade a lot with each other, and in much of their trade each is exporting and importing similar products.
课件纲要
- Scale Economies
- Internal Scale Economies
- External Scale Economies
- Intra-Industry Trade
- Measuring Intra-Industry Trade
- How Important is Intra-Industry Trade?
- What Explains Intra-Industry Trade?
- Monopolistic Competition and Trade
- The Market with No Trade
- Opening to Free Trade
- Gains from Trade
- Global Oligopoly
习题精选
题目 1
The Heckscher-Ohlin theory predicts that trade between similar industrialized countries should
- A be much greater than trade between developed and developing countries.
- B be rather limited in volume.
- C consist mainly of highly sophisticated manufactured goods.
- D consists mainly of manufactured products intensive in low- and medium-skill labor.
答案：B · be rather limited in volume.
题目 2
Scale economies are said to be present when
- A an increase in output leads to an increase in average cost.
- B an increase in output has no impact on average cost.
- C an increase in output leads to a decrease in average cost.
- D there is a single firm in an industry.
答案：C · an increase in output leads to a decrease in average cost.
题目 3
Internal scale economies occur when
- A expansion of output by a firm leads to greater specialization of labor.
- B expansion in an industry drives down input prices.
- C industry growth leads to a greater diffusion of knowledge among firms.
- D a firm pays higher input prices to expand production.
答案：A · expansion of output by a firm leads to greater specialization of labor.
题目 4
________ is a market structure in which a large number of firms compete vigorously with each other in producing and selling different varieties of a basic product.
- A Perfect competition
- B Monopoly
- C Oligopoly
- D Monopolistic competition
答案：D · Monopolistic competition
题目 5
When Firm X doubled its output, it was found that its cost per unit declined by 10 percent. It can be concluded that
- A the firm was facing external scale diseconomies.
- B the firm was enjoying internal scale economies.
- C the firm was operating on the inelastic portion of the demand curve.
- D the marginal cost of production at the initial output level was constant.
答案：B · the firm was enjoying internal scale economies.
题目 6
Which of the following can best explain the clustering of some industries, such as banking and finance in New York City and high-technology computer production in Silicon Valley?
- A External scale economies
- B Perfect competition
- C Intra-industry trade
- D Comparative advantage
答案：A · External scale economies
题目 7
Which of the following refers to a two-way trade in which a country both exports and imports the same or very similar products?
- A Net trade
- B Inter-industry trade
- C Intra-industry trade
- D Internal trade
答案：C · Intra-industry trade
题目 8
Which of the following is the formula for the intra-industry trade (IIT) share in a product's total trade?
- A 1 - |X - M|
- B 1 - (X + M)
- C 1 - [ |X - M| / (X + M)]
- D 1 - [ |X + M| / (X - M)]
答案：C · 1 - [ |X - M| / (X + M)]
题目 9
Suppose the amount of exports of textile machinery from Italy to the rest of the world equals 60 billion tons. The amount of imports of textile machinery into Italy from the rest of the world is 40 billion tons. Therefore, the intra-industry trade share for machinery is
- A 0.2.
- B 0.8.
- C 1.5.
- D 0.67.
答案：B · 0.8.
题目 10
Which of the following is true of intra-industry trade?
- A Intra-industry trade is mostly based on the differences stressed in the Heckscher-Ohlin trade theory.
- B Intra-industry trade is usually discouraged by the government.
- C Intra-industry trade is said to occur when the United States exports Ford automobiles and imports Honda automobiles.
- D Intra-industry trade is said to occur when the United States exports Ford automobiles and imports petroleum.
答案：C · Intra-industry trade is said to occur when the United States exports Ford automobiles and imports Honda automobiles.
题目 11
Which of the following can help explain the rise of intra-industry trade?
- A Recent recessions and increases in the price of oil have led to lower national income levels.
- B The demand for product variety has increased substantially over time.
- C Countries widely vary in terms of their resource endowments.
- D The developed nations have recently implemented more conservative fiscal policies.
答案：B · The demand for product variety has increased substantially over time.
题目 12
Which of the following indicates the difference between the volume of exports and imports of a product?
- A Net trade
- B Intra-industry trade
- C Total trade
- D Terms of trade
答案：A · Net trade
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# 第6章 Scale Economies, Imperfect Competition, and Trade ## 章节概览 Scale Economies, Imperfect Competition, and Trade Standard trade theory presented in Chapters 3-5 is based on perfect competition, with constant returns to scale at the level of the individual firm and constant or increasing cost of expanding production at the level of the industry. Comparative advantage predicts that countries will trade with other countries that are different (the source of the comparative cost differences) and that each country will export some products and import other, quite different products. ## 知识点 ### 1. Scale Economies - 教学说明：Scale Economies, Imperfect Competition, and Trade - 支撑要点：constant returns to scale - 支撑要点：, input use and total cost rise in the same proportion as output increases. - 来源类型：manual ### 2. Monopolistic Competition and Trade - 教学说明：The remainder of the chapter presents the three additional trade theories. The first is based on monopolistic competition. While there may be a number of explanations of intra-industry trade, product differentiation seems to be the major one. The market structure of monopolistic competition is useful for analyzing the role of product differentiation. - 支撑要点：If scale economies are modest or moderate, there is room in the industry for a large number of firms. - 支撑要点：For products that are differentiated, a mild form of imperfect competition called - 支撑要点：monopolistic competition - 来源类型：manual ### 3. Intra-Industry Trade - 教学说明：The next section of the chapter defines intra-industry trade (IIT), in which a country both exports and imports the same product or very similar product varieties. It explains how IIT is measured for an individual product, with examples shown in Figure 6.2. The importance of IIT in a country’s overall trade is the weighted average of the IIT shares for each of the individual products. - 支撑要点：Net trade - 支撑要点：for an industry is the difference between exports and imports of the industry’s product(s). - 支撑要点：Inter-industry trade - 来源类型：manual ### 4. Economies of Scale - 教学说明：Scale Economies, Imperfect Competition, and Trade - 支撑要点：constant returns to scale - 支撑要点：, input use and total cost rise in the same proportion as output increases. - 来源类型：manual ### 5. Oligopoly and Trade - 教学说明：The second theory is global oligopoly. In some industries, a few large firms account for most global sales, perhaps because internal scale economies are large. Although we do not have a single dominant full theory of oligopoly, we can make several observations about oligopoly and trade. First, scale economies tend to concentrate production in a few production sites. - 支撑要点：If scale economies are modest or moderate, there is room in the industry for a large number of firms. - 支撑要点：For products that are differentiated, a mild form of imperfect competition called - 支撑要点：monopolistic competition - 来源类型：manual ## 案例 ### 案例 1: b.With respect to short-run pressures on economic well-being, owners of ... b.With respect to short-run pressures on economic well-being, owners of factors employed in industries that could expand exports are likely to support the policy shift, because the demand for these factors increases as firms attempt to expand production. Owners of factors employed in industries that will receive increased competition from imports are likely to oppose the policy shift (unless they feel that other benefits from such changes as greater product variety more than offset their direct income losses). ### 案例 2: b.From the perspective of the well-being of the United States or ... b.From the perspective of the well-being of the United States or Europe, a high-price equilibrium could be desirable because it involves setting high prices on export sales to other countries. This equilibrium also results in sales to domestic buyers at high prices, so there is some loss of pricing efficiency domestically. ### 案例 3: Our third theory is based on scale economies that are external ... Our third theory is based on scale economies that are external to the individual firm but arise from advantages of having a high level of production in a geographic area. With external scale economies (also called agglomeration economies), an expansion of demand (such as that caused by increased exports) can result in a lower unit cost for all producers in the area and a lower product price. ### 案例 4: Standard trade theory presented in Chapters 3-5 is based on perfect ... Standard trade theory presented in Chapters 3-5 is based on perfect competition, with constant returns to scale at the level of the individual firm and constant or increasing cost of expanding production at the level of the industry. Comparative advantage predicts that countries will trade with other countries that are different (the source of the comparative cost differences) and that each country will export some products and import other, quite different products. ## 习题 ### 题目 1 The Heckscher-Ohlin theory predicts that trade between similar industrialized countries should - A) be much greater than trade between developed and developing countries. - B) be rather limited in volume. - C) consist mainly of highly sophisticated manufactured goods. - D) consists mainly of manufactured products intensive in low- and medium-skill labor. ### 题目 2 Scale economies are said to be present when - A) an increase in output leads to an increase in average cost. - B) an increase in output has no impact on average cost. - C) an increase in output leads to a decrease in average cost. - D) there is a single firm in an industry. ### 题目 3 Internal scale economies occur when - A) expansion of output by a firm leads to greater specialization of labor. - B) expansion in an industry drives down input prices. - C) industry growth leads to a greater diffusion of knowledge among firms. - D) a firm pays higher input prices to expand production. ### 题目 4 ________ is a market structure in which a large number of firms compete vigorously with each other in producing and selling different varieties of a basic product. - A) Perfect competition - B) Monopoly - C) Oligopoly - D) Monopolistic competition ### 题目 5 When Firm X doubled its output, it was found that its cost per unit declined by 10 percent. It can be concluded that - A) the firm was facing external scale diseconomies. - B) the firm was enjoying internal scale economies. - C) the firm was operating on the inelastic portion of the demand curve. - D) the marginal cost of production at the initial output level was constant. ### 题目 6 Which of the following can best explain the clustering of some industries, such as banking and finance in New York City and high-technology computer production in Silicon Valley? - A) External scale economies - B) Perfect competition - C) Intra-industry trade - D) Comparative advantage ### 题目 7 Which of the following refers to a two-way trade in which a country both exports and imports the same or very similar products? - A) Net trade - B) Inter-industry trade - C) Intra-industry trade - D) Internal trade ### 题目 8 Which of the following is the formula for the intra-industry trade (IIT) share in a product's total trade? - A) 1 - |X - M| - B) 1 - (X + M) - C) 1 - [ |X - M| / (X + M)] - D) 1 - [ |X + M| / (X - M)] ## 参考答案 - 题目 1: 答案：B | 选项内容：be rather limited in volume. | Topic：Scale Economies | Difficulty：1 Easy - 题目 2: 答案：C | 选项内容：an increase in output leads to a decrease in average cost. | Topic：Scale Economies | Difficulty：1 Easy - 题目 3: 答案：A | 选项内容：expansion of output by a firm leads to greater specialization of labor. | Topic：Scale Economies | Difficulty：1 Easy - 题目 4: 答案：D | 选项内容：Monopolistic competition | Topic：Monopolistic Competition and Trade | Difficulty：1 Easy - 题目 5: 答案：B | 选项内容：the firm was enjoying internal scale economies. | Topic：Scale Economies | Difficulty：1 Easy - 题目 6: 答案：A | 选项内容：External scale economies | Topic：Scale Economies | Difficulty：2 Medium - 题目 7: 答案：C | 选项内容：Intra-industry trade | Topic：Intra-Industry Trade | Difficulty：1 Easy - 题目 8: 答案：C | 选项内容：1 - [ |X - M| / (X + M)] | Topic：Intra-Industry Trade | Difficulty：2 Medium ## AI / NextLab 使用建议 - Monopolistic Competition Variety Lab：将《Scale Economies, Imperfect Competition, and Trade》对应的理论或政策机制放到贸易分析实验室中做交互式验证。 https://digitconnection.ai/nextlab/