ECO 3111 Lecture Notes - Lecture 2: Temporary Work, Absolute Advantage, Comparative Advantage
13 Mar 2018
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Week 2 - ricardian & specific-factors models of international trade. Gig economy -not a lifetime secure job, sometimes pay check other times not. Differences in the total amount of resources (labour, capital. and land etc) found in each country: heckscher bohlin model, 3. The proximity or distance of countries to each other. The closer countries are the lower the costs of transportation ex: the largest partner of most european countries are other european countries; Canada and the us are each other"s largest trading partners. Sometimes neighbouring countries have free-trade agreements with each other: gravity model, 4. Differences in the costs of offshoring (producing various parts of a good in a different countries and then assembling it in a nal location: the global valu-chain (gvc) model. 2 goods produced x, y using labour l. Terms of trade = tot = price of export relative price of imports = pexp / pimp.
