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Brian Butler: TBird int'l economics class 04

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Brian David Butler
Brian David Butler

Series of lectures from Brian Butler, given during fall 2008 session at Thunderbird Global MBA, Miami campus: This lecture 04: learn the basics of trade economics, starting with absolute advantage, comparative advantage, and looking at the economics of free trade

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[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Session #5
Trade class objectives: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Theories ,[object Object]
Trade: what benefits? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Trade: why controversial? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Anti-trade movement: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
For initial discussion… ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],Trade: Comparative Advantage:
[object Object],[object Object],[object Object],[object Object],[object Object],Trade: Absolute Advantage:
[object Object],[object Object],[object Object],[object Object],Trade: Comparative Advantage:
[object Object],[object Object],[object Object],[object Object],Comparative Advantage cont’d:
Comparative Advantage Example: ,[object Object],[object Object],[object Object],[object Object],[object Object]
example: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Question: ,[object Object],[object Object]
With no trade:
Production if both countries specialize + trade ,[object Object],[object Object],[object Object],[object Object],Production / consumption with NO trade A B USA 120 40 Honduras 40 30 total = 160 + 70 = 230
How much SHOULD they trade? ,[object Object],[object Object],[object Object],[object Object]
example: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
example: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Barriers to gains? ,[object Object],[object Object],[object Object],[object Object]
Comparative vs. Absolute? ,[object Object],[object Object],[object Object],[object Object]
Trade: definitions ,[object Object],[object Object],[object Object]
Trade: Comparative Advantage: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Brian Butler: TBird int'l economics class 04

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