CHAPTER 16 COMPARATIVE ADVANTAGE AND THE GAINS FROM TRADE ECONOMICS SECOND EDITION ROBERT E. HALL STANFORD UNIVERSITY MARC LIEBERMAN NEW YORK UNIVERSITY CHAPTER 16 COMPARATIVE ADVANTAGE AND THE GAINS FROM TRADE

Table 1 Costs of Production ECONOMICS 2e / HALL & LIEBERMAN CHAPTER 16 / COMPARATIVE ADVANTAGE AND THE GAINS FROM TRADE © 2001 South-Western

Table 2 Opportunity Costs ECONOMICS 2e / HALL & LIEBERMAN CHAPTER 16 / COMPARATIVE ADVANTAGE AND THE GAINS FROM TRADE © 2001 South-Western

Table 3 A Small Change in Production ECONOMICS 2e / HALL & LIEBERMAN CHAPTER 16 / COMPARATIVE ADVANTAGE AND THE GAINS FROM TRADE © 2001 South-Western

Table 4 The Gains from Specialization and Trade ECONOMICS 2e / HALL & LIEBERMAN CHAPTER 16 / COMPARATIVE ADVANTAGE AND THE GAINS FROM TRADE © 2001 South-Western

Table 5 Labor Inputs Needed ECONOMICS 2e / HALL & LIEBERMAN CHAPTER 16 / COMPARATIVE ADVANTAGE AND THE GAINS FROM TRADE © 2001 South-Western

Table 6 Prices in China and the United States with an Exchange Rate of 8 CNY for $1 ECONOMICS 2e / HALL & LIEBERMAN CHAPTER 16 / COMPARATIVE ADVANTAGE AND THE GAINS FROM TRADE © 2001 South-Western

Table 7 Examples of National Specialties in International Trade Country Specialty Resulting from Natural Resources or Climate Saudi Arabia Oil Canada Timber United States Grain Spain Olive oil Mexico Tomatoes Jamaica Aluminum ore Italy Wine Israel Citrus fruit Specialty Not Based on Natural Resources or Climate Japan Cars, consumer electronics Software, movies, music Switzerland Watches Korea Steel, ships Hong Kong Textiles Great Britain Financial services ECONOMICS 2e / HALL & LIEBERMAN CHAPTER 16 / COMPARATIVE ADVANTAGE AND THE GAINS FROM TRADE © 2001 South-Western

Figure 1 The Impact of Trade China United States Price Price (Dollars) (Dollars) Supply F P ¢N Supply Q2 Q3 B A PT C D Q¢2 Q¢3 PN E Demand Demand QN Q¢N Quantity Quantity of Suits of Suits ECONOMICS 2e / HALL & LIEBERMAN CHAPTER 16 / COMPARATIVE ADVANTAGE AND THE GAINS FROM TRADE © 2001 South-Western

Table 8 Attitudes Toward Free Trade ECONOMICS 2e / HALL & LIEBERMAN CHAPTER 16 / COMPARATIVE ADVANTAGE AND THE GAINS FROM TRADE © 2001 South-Western

Figure 2 The Effects of a Tariff on Suits China United States Price Price (Dollars) (Dollars) Supply P 2 K L 3 H J Supply A B C D P P T T Demand Demand Quantity Quantity of Suits of Suits ECONOMICS 2e / HALL & LIEBERMAN CHAPTER 16 / COMPARATIVE ADVANTAGE AND THE GAINS FROM TRADE © 2001 South-Western