1. First edition Global Economic Issues and Policies PowerPoint Presentation by Charlie Cook Copyright © 2004 South-Western/Thomson Learning. All rights reserved. Chapter 10 Can Globalization Lift All Boats?

2. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–2 Figure 10-1a Shares of U.S. Trade for Major Trading Partners Source: International Monetary Fund, Direction of Trade Statistics and U.S. Department of Commerce.

3. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–3 Figure 10-1b Shares of U.S. Trade and Wages of Manufacturing Workers as a Percentage of Wages of U.S. Manufacturing Workers Source: International Monetary Fund, Direction of Trade Statistics and U.S. Department of Commerce.

4. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–4 Figure 10-2 Indexes of Hourly Compensation Costs in Manufacturing for Selected Nations Source: U.S. Bureau of Labor Statistics.

5. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–5 Table 10-1 Calculating the Marginal Revenue Product of Labor

6. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–6 Figure 10-3 The Demand for Labor

7. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–7 Table 10-2 Determining the Market Wage Rate

8. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–8 Table 10-3 Determining the Market Wage Rate

9. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–9 Figure 10-4 The Labor- Market Effects of a Decline in Product Price Induced by Increased International Trade

10. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–10 Figure 10-5 The Ratio of the Average Wage of U.S. College Graduates to the Average Wage of U.S. High School Graduates Source: Lawrence Katz, “Technological Change, Computerization, and the Wage Structure,” in Understanding the Digital Economy, Erik Brynjolfsson and Brian Kahin, eds., Cambridge, Mass.: MIT Press, 2000, 217–246; authors’ estimate for 2000.

11. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–11 Figure 10-6 The Labor-Market Effects of a Decline in Product Price Induced by Increased International Trade Source: Sandra Black and Elizabeth Brainerd, “Importing Equality? The Effects of Increased Competition on the Gender Wage Gap,” Working Paper, Federal Reserve Bank of New York, March 1999.

12. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–12 Limitations of the Factor Proportions Approach Inter-industry trade  International trade of completely distinguishable goods and services. Intra-industry trade  International trade of goods or services that are closely substitutable.

13. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–13 Figure 10-7a Immigration into the United States Source: Pia Orrenius and Alan Viard, “The Second Great Migration: Economic and Policy Implications, ”Federal Reserve Bank of Dallas Southwest Economy, May/June 2000, 1–8; and authors’ estimates.

14. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–14 Figure 10-7b,c Immigration into the United States (cont’d) Source: Pia Orrenius and Alan Viard, “The Second Great Migration: Economic and Policy Implications, ”Federal Reserve Bank of Dallas Southwest Economy, May/June 2000, 1–8; and authors’ estimates.

15. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–15 Figure 10-8 Population and Trade Shares of Selected World Regions Source: World Bank, World Development Indicators, and International Monetary Fund, Direction of Trade Statistics.

16. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–16 Table 10-4 Unit Labor Costs in Selected Developing Countries Source: United Nations Trade and Development Report.

17. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–17 Source: Organization for Economic Cooperation and Development and International Telecommunications Union. Figure 10-9a Physical and Online Population Distributions

18. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–18 Source: Organization for Economic Cooperation and Development and International Telecommunications Union. Internet Monthly Access Prices for 20 Hours of Off-peak Use, Selected Economies (U.S. dollars) Figure 10-9b Internet Access Prices for Selected Regions and Nations

19. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–19 Figure 10-10 Trade Barriers versus Economic Growth Source: World Bank, World Development Indicators and Competitiveness Indicators, 2002.

20. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–20 Figure 10-11a Private Capital Flows in Developing Nations Source: International Monetary Fund.

21. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–21 Figure 10-11b National Income Growth in Developing Nations Source: International Monetary Fund.

22. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–22 Figure 10-12 Shares of Foreign Direct Investment in Developing Regions Source: United Nations, Trade and Development Report.

23. Copyright © 2004 South-Western/Thomson Learning. All rights reserved.10–23 Questions and Problems - 1)