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The first significant study on the effects of technological differences on international trade is the Imitation Lag Hypothesis of Posner introduced in 1961.
Sayfa 98Kitabı okudu
The shift of an indifference curve represents a welfare increase.
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The comparative advantage law is one of the most important laws of economy, as it is useful for individuals as well as for nations, as well as for revealing many serious fallacies. (…) the term is usually attributed to David Ricardo who explained it in his 1817 book “The Principles of Taxation and Political Economy”. (…)
According to David
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Intra-industry trade arises when a country both exports and imports within the same commodity classification category. Intra-industry trade is high for the commodities that require high technology or more sophistication. Examples for intra-industry trade can be seen at the machinery, transport equipment, electronics industry as well as chemicals. (…) The level of intra-industry trade is usually measured by the Grubel-Lloyd Index.
Main Reasons of Intra-Industry Trade: Internal economies of scale, Product differentiation, Transportation costs, Scope of commodity classification, Differences in distribution of income
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External economies of scale exist when the cost per unit of production depends on the size of the industry. In other words, average cost of production decreases as the scale of the industry increases. Internal economies of scale exist when the cost per unit of production depends on the size of the firm itself. In other words, average cost of production decreases as the scale of the individual firm increases.
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