EKONOMI INTERNASIONAL

BACAAN Economics, Husted,Steven and Michael Melvin; International Economics, sixth edition, pearson Addison-Wesley:2004 Salvatore,Dominick;International Sixth Edition, Prentice Hall Int’l:1995

TEORI PERDAGANGAN INTERNASIONAL The Absolute Advantage The Comparative Advantage The Heckser-Ohlin The Extended H-O The Leontif -paradoks The Factor Price Equalization Theorem The Stolper-Samuelson Theorem The Rybczynski Theorem

HECKSER OHLIN A country has comparative advantage in the product whose production is intensive in the factor with which that country is abundantly endowed. Application: Country A is capital abundant. Product S is capital intensive. Then, A has comparative advantage in S as it has a lower RP of S than B does.

Equilibrium with Trade In A In B Initial condition Comp Adv. S T RP of S low high With Trade RP of S rises falls Production of S increases decreases Production of T decreases increases

Trade equilibrium in the HO model

Trade equilibrium in the HO model

Trade equilibrium in the HO model

Reciprocal demand in the classical and HO models

The effect of rising world prices of good S on country A’s trade

The importance of assuming identical tastes

Incomplete Specialization In the H-O model, OC of S rises as its production increases. It results in incomplete specialization. Q: Discuss why A will not increase the production of S any further.

Trade equilibrium in the Classical Model

The Extended H-O Model The Leontif -paradoks The Factor Price Equalization Theorem The Stolper-Samuelson Theorem The Rybczynski Theorem

The Leontif Paradoks LP adalah suatu hasil penelitian yang membuktikan bahwa produk industri Amerika Serikat bukan merupakan kapital intensif walaupun AS adalah negara yang kapital abundant. Hasil penelitian Leontif terhadap produk 200 industri di AS membuktikan bhw produk AS ternyata menggunakan Labor ratio lebih banyak daripada kapital ratio. Oleh karena itu teori ini paradok terhadap hipotesis selama ini yang mengatakan bahwa produk AS adalah kapital intensif.

The Factor Price Equalization Theorem (Perdagangan internasional akan mengakibatkan terjadinya keseimbangan nilai faktor produksi bagi negara yang berdagang) Free trade leads to the international equalization of individual factor prices. in A in B Initial Capital abndant Labor abundant S (capital intensif) T (Labor intensif) Wages high low rents low high With trade Wages falls rises rents rises falls Wages are equalized across countries even if there is no international mobility of labor. Free trade is a substitute for free mobility of productive factors.

The Stolper-Samuelson Theorem Free trade benefits the abundant factor and harms the scarce factor. In A, abundant in capital, rents rise while wages fall with trade. This benefits capital owners (the abundant factor) and hurts workers (the scarce factor). In B, the opposite happens. This benefits workers (the abundant factor) and hurts capital owners (the scarce factor).

The Rybczynski Theorem If a country experiences an increase in the supply of one factor, it will, at constant world prices, produce more of the product intensive in that factor and less of the other product.

(The Rybczynski) cntn’d The Rybczynkski theorem menyatakan bahwa pada harga-harga konstan jika sebuah negara mengalami peningkatan supply untuk satu faktor maka negara tersebut akan menghasilkan lebih banyak produk pada faktor yang intensif dan mengurangi pada faktor lainnya Grafik

Why does the FPE not hold in reality? Trade is not free. There are barriers, natural and man-made. Productivities are different. Technologies are different.

Political Economy of Trade Who will be more likely to oppose free trade? the owners of scarce factors of production the producers of import-competing products the consumers of export products Who will be free traders? the owners of abundant factors of production the producers of export products the consumers of import products Q: Does a country as a whole gain? How can we show it?