1. McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, All Rights Reserved Chapter 5: Who Gains and Who Loses from Trade?

2. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 5-2 Figure 5.1 How Free Trade Affects Income Distribution in the Long Run: The Whole Chain of Influence

3. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 5-3 Exports Plus Imports as a Percentage of GDP Figure 5.2 Winners and Losers: Short Run versus Long Run

4. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 5-4 A Factor-Ratio Paradox

5. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 5-5 Figure 2.2 The Market for Motorbikes: Demand and Supply Figure 5.3 Shares of the World’s Factor Endowments, 2007-2010

6. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 5-6 Figure 5.4 U.S. International Trade in Selected Products, 2009

7. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 5-7 China’s Exports and Imports

8. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 5-8 China: Value of Exports and Imports, 1976-2009

9. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 5-9 Figure 5.5 A Schematic View of the Factor Content of U.S. Exports and Competing Imports

10. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 5-10 Figure 5.6 The Factor Content of Canada’s Exports and Competing Imports