101 lecture 9
TRANSCRIPT
![Page 1: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/1.jpg)
MicroeconomicsLecture 9
International Trade
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Domestic Price
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Domestic Price
the price of a good in the local market
![Page 4: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/4.jpg)
World Price
![Page 5: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/5.jpg)
World Price
the price of a good in the
world market
![Page 6: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/6.jpg)
World Trade
![Page 7: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/7.jpg)
World Trade
always winners and losers
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World Trade
![Page 9: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/9.jpg)
World Trade
more winners than losers
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World Trade
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World Trade
losers can be better
organized
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New DemandDomestic & World
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“kink”
Total Sales
![Page 24: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/24.jpg)
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Demand
DomesticSupply
Export Analysis
DomesticPrice
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New DemandDomestic & World
“kink”
Total Sales
![Page 25: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/25.jpg)
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Export Analysis
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New DemandDomestic & World
“kink”
Total Sales
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DomesticSupply
Export Analysis
DomesticPrice
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New DemandDomestic & World
“kink”
Domestic Sales Total Sales
![Page 27: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/27.jpg)
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DomesticSupply
Export Analysis
DomesticPrice
WorldPrice
New DemandDomestic & World
“kink”
Domestic Sales Total Sales
![Page 28: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/28.jpg)
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Demand
DomesticSupply
Export Analysis
DomesticPrice
WorldPrice
New DemandDomestic & World
“kink”
Domestic Sales Total Sales
Exports7 - 3 = 4
![Page 29: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/29.jpg)
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Demand
DomesticSupply
A
Export Analysis
DomesticPrice
WorldPrice
New DemandDomestic & World
“kink”
Domestic Sales Total Sales
Exports7 - 3 = 4
![Page 30: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/30.jpg)
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Demand
DomesticSupply
A
B
Export Analysis
DomesticPrice
WorldPrice
New DemandDomestic & World
“kink”
Domestic Sales Total Sales
Exports7 - 3 = 4
![Page 31: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/31.jpg)
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Demand
DomesticSupply
A
B
C
Export Analysis
DomesticPrice
WorldPrice
New DemandDomestic & World
“kink”
Domestic Sales Total Sales
Exports7 - 3 = 4
![Page 32: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/32.jpg)
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Demand
DomesticSupply
A
B
C
D
Export Analysis
DomesticPrice
WorldPrice
New DemandDomestic & World
“kink”
Domestic Sales Total Sales
Exports7 - 3 = 4
![Page 33: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/33.jpg)
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Demand
DomesticSupply
A
B
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D
Export Analysis
DomesticPrice
WorldPrice
New DemandDomestic & World
“kink”
Domestic Sales Total Sales
Exports7 - 3 = 4
![Page 34: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/34.jpg)
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Demand
DomesticSupply
A
B
C
D
Domestic Buyerspay a higher pricelose B to Sellers
Export Analysis
DomesticPrice
WorldPrice
New DemandDomestic & World
“kink”
Domestic Sales Total Sales
Exports7 - 3 = 4
![Page 35: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/35.jpg)
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Demand
DomesticSupply
A
B
C
D
Domestic Buyerspay a higher pricelose B to Sellers
Domestic Sellersgain D from
world marketand gain B from domestic buyers
Export Analysis
DomesticPrice
WorldPrice
New DemandDomestic & World
“kink”
Domestic Sales Total Sales
Exports7 - 3 = 4
![Page 36: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/36.jpg)
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Demand
DomesticSupply
A
B
C
D
Domestic Buyerspay a higher pricelose B to Sellers
Domestic Sellersgain D from
world marketand gain B from domestic buyers
Export Analysis
DomesticPrice
WorldPrice
New DemandDomestic & World
“kink”
Domestic Sales Total Sales
Exports7 - 3 = 4
![Page 37: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/37.jpg)
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Demand
DomesticSupply
A
B
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D
Domestic Buyerspay a higher pricelose B to Sellers
Domestic Sellersgain D from
world marketand gain B from domestic buyers
Export Analysis
DomesticPrice
WorldPrice
New DemandDomestic & World
“kink”
Domestic Sales Total Sales
Exports7 - 3 = 4
Consumers LoseProducers Win
![Page 38: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/38.jpg)
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“kink”
Total Sales
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Import Analysis
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New SupplyDomestic & World
“kink”
Total Sales
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Demand
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Import Analysis
DomesticPrice
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New SupplyDomestic & World
“kink”
Total Sales
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0 1 2 3 4 5 6 7 8 9 10
Demand
DomesticSupply
Import Analysis
DomesticPrice
WorldPrice
New SupplyDomestic & World
“kink”
Domestic Sales Total Sales
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Demand
DomesticSupply
Import Analysis
DomesticPrice
WorldPrice
New SupplyDomestic & World
“kink”
Domestic Sales Total Sales
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0 1 2 3 4 5 6 7 8 9 10
Demand
DomesticSupply
Import Analysis
DomesticPrice
WorldPrice
New SupplyDomestic & World
“kink”
Domestic Sales Total Sales
Imports7 - 3 = 4
![Page 55: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/55.jpg)
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0 1 2 3 4 5 6 7 8 9 10
Demand
DomesticSupply
A
Import Analysis
DomesticPrice
WorldPrice
New SupplyDomestic & World
“kink”
Domestic Sales Total Sales
Imports7 - 3 = 4
![Page 56: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/56.jpg)
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0 1 2 3 4 5 6 7 8 9 10
Demand
DomesticSupply
A
B
Import Analysis
DomesticPrice
WorldPrice
New SupplyDomestic & World
“kink”
Domestic Sales Total Sales
Imports7 - 3 = 4
![Page 57: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/57.jpg)
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0 1 2 3 4 5 6 7 8 9 10
Demand
DomesticSupply
A
B
C
Import Analysis
DomesticPrice
WorldPrice
New SupplyDomestic & World
“kink”
Domestic Sales Total Sales
Imports7 - 3 = 4
![Page 58: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/58.jpg)
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0 1 2 3 4 5 6 7 8 9 10
Demand
DomesticSupply
A
B
C
D
Import Analysis
DomesticPrice
WorldPrice
New SupplyDomestic & World
“kink”
Domestic Sales Total Sales
Imports7 - 3 = 4
![Page 59: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/59.jpg)
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0 1 2 3 4 5 6 7 8 9 10
Demand
DomesticSupply
A
B
C
D
Import Analysis
DomesticPrice
WorldPrice
New SupplyDomestic & World
“kink”
Domestic Sales Total Sales
Imports7 - 3 = 4
![Page 60: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/60.jpg)
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0 1 2 3 4 5 6 7 8 9 10
Demand
DomesticSupply
A
B
C
D
Domestic Buyerspay a lower price
gain D from world sellers
and gain B from domestic sellers
Import Analysis
DomesticPrice
WorldPrice
New SupplyDomestic & World
“kink”
Domestic Sales Total Sales
Imports7 - 3 = 4
![Page 61: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/61.jpg)
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0 1 2 3 4 5 6 7 8 9 10
Demand
DomesticSupply
A
B
C
D
Domestic Buyerspay a lower price
gain D from world sellers
and gain B from domestic sellers
Domestic Sellerslose B to Buyers
Import Analysis
DomesticPrice
WorldPrice
New SupplyDomestic & World
“kink”
Domestic Sales Total Sales
Imports7 - 3 = 4
![Page 62: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/62.jpg)
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D
Domestic Buyerspay a lower price
gain D from world sellers
and gain B from domestic sellers
Domestic Sellerslose B to Buyers
Import Analysis
DomesticPrice
WorldPrice
New SupplyDomestic & World
“kink”
Domestic Sales Total Sales
Imports7 - 3 = 4
![Page 63: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/63.jpg)
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D
Domestic Buyerspay a lower price
gain D from world sellers
and gain B from domestic sellers
Domestic Sellerslose B to Buyers
Import Analysis
DomesticPrice
WorldPrice
New SupplyDomestic & World
“kink”
Domestic Sales Total Sales
Imports7 - 3 = 4
Consumers WinProducers Lose
![Page 64: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/64.jpg)
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Tariff Analysis
PricewithTariff
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DomesticPrice
A
Tariff of 10
![Page 83: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/83.jpg)
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A
BTariff of 10
![Page 84: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/84.jpg)
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A
BC Tariff of 10
![Page 85: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/85.jpg)
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A
BC D Tariff of 10
![Page 86: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/86.jpg)
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A
BC D E Tariff of 10
![Page 87: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/87.jpg)
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A
BC D E F Tariff of 10
![Page 88: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/88.jpg)
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A
BC D E F
G
Tariff of 10
![Page 89: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/89.jpg)
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Tariff Analysis
PricewithTariff
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DomesticPrice
A
BC D E F
G
Tariff of 10
Consumers LoseProducers Win
Government WinsDeadweight Losses
![Page 90: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/90.jpg)
Favor
![Page 91: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/91.jpg)
Favorvariety
lower costscompetition
ideas
![Page 92: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/92.jpg)
Oppose
![Page 93: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/93.jpg)
Opposejobs
securityinfant
fairness
![Page 94: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/94.jpg)
Should you retaliate?
![Page 95: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/95.jpg)
Should you retaliate?
No
![Page 96: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/96.jpg)
Trade isan innovation
![Page 97: 101 lecture 9](https://reader034.vdocuments.mx/reader034/viewer/2022042602/55847475d8b42a15768b4a66/html5/thumbnails/97.jpg)
Trade isan innovation
don’t need to make it if I can trade for it