public affairs 856 trade, competition, and governance in a...
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Public Affairs 856Trade, Competition, and
Governance in a Global EconomyLecture 2-3
1/25-27/2016
Instructor: Prof. Menzie ChinnUW MadisonSpring 2016
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Technological Parameters
• MPLw = 4• MPLc = 2• MPLw* = 1• MPLc* = 1
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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_lecture2_3_s16.pdf · 2016-01-27 · Public Affairs 856 Trade, Competition, and Governance](https://reader030.vdocuments.net/reader030/viewer/2022040600/5e8b2848bd648a03e63d1825/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_lecture2_3_s16.pdf · 2016-01-27 · Public Affairs 856 Trade, Competition, and Governance](https://reader030.vdocuments.net/reader030/viewer/2022040600/5e8b2848bd648a03e63d1825/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_lecture2_3_s16.pdf · 2016-01-27 · Public Affairs 856 Trade, Competition, and Governance](https://reader030.vdocuments.net/reader030/viewer/2022040600/5e8b2848bd648a03e63d1825/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_lecture2_3_s16.pdf · 2016-01-27 · Public Affairs 856 Trade, Competition, and Governance](https://reader030.vdocuments.net/reader030/viewer/2022040600/5e8b2848bd648a03e63d1825/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_lecture2_3_s16.pdf · 2016-01-27 · Public Affairs 856 Trade, Competition, and Governance](https://reader030.vdocuments.net/reader030/viewer/2022040600/5e8b2848bd648a03e63d1825/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_lecture2_3_s16.pdf · 2016-01-27 · Public Affairs 856 Trade, Competition, and Governance](https://reader030.vdocuments.net/reader030/viewer/2022040600/5e8b2848bd648a03e63d1825/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_lecture2_3_s16.pdf · 2016-01-27 · Public Affairs 856 Trade, Competition, and Governance](https://reader030.vdocuments.net/reader030/viewer/2022040600/5e8b2848bd648a03e63d1825/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
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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_lecture2_3_s16.pdf · 2016-01-27 · Public Affairs 856 Trade, Competition, and Governance](https://reader030.vdocuments.net/reader030/viewer/2022040600/5e8b2848bd648a03e63d1825/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_lecture2_3_s16.pdf · 2016-01-27 · Public Affairs 856 Trade, Competition, and Governance](https://reader030.vdocuments.net/reader030/viewer/2022040600/5e8b2848bd648a03e63d1825/html5/thumbnails/13.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
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Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
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Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
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Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
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Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
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Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
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Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
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Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
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Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
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Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
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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_lecture2_3_s16.pdf · 2016-01-27 · Public Affairs 856 Trade, Competition, and Governance](https://reader030.vdocuments.net/reader030/viewer/2022040600/5e8b2848bd648a03e63d1825/html5/thumbnails/24.jpg)
Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
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Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
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Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers
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Robert C. Feenstra and Alan M. TaylorInternational Trade, Third Edition / International Economics, Third Edition
Copyright © 2014 by Worth Publishers