1. 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

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

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

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

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

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

7. 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

8. 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

9. 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

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

11. 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