ECON 2105 Chapter Notes - Chapter 5: Autarky, Economic Surplus, Demand Curve
Document Summary
Goods and services purchased from other countries are imports; goods and services sold to other countries are exports. Globalization is the phenomenon of growing economic linkages among countries. Hyperglobalization is the phenomenon of extremely high levels of international trade. The ricardian model of international trade analyzes international trade under the assumption that opportunity costs are constant. Autarky is a situation in which a country does not trade with other countries. The factor intensity of production of a good is a measure of which factor is used in relatively greater quantities than other factors in production. According to the heckscher ohlin model, a country has a comparative advantage in a good whose production is intensive in the factors that are abundantly available in that country. 1-explain the following patterns of trade using the heckscher ohlin model. A:france exports wine to the united states, and the united states exports movies to. According to the heckscher ohlin model, this pattern of trade occurs.
