國際經(jīng)濟學課件07

Chapter7InternationalFactor

MovementsPreviewInternationallabormobilityInternationalborrowingandlendingForeigndirectinvestmentandmultinationalfirms2Copyright?2009PearsonAddison-Wesley.Allrightsreserved.MovementsinFactorsofProductionMovementsinfactorsofproductionincludelabormigrationthetransferoffinancialassetsthroughinternationalborrowingandlendingtransactionsofmultinationalcorporationsinvolvingdirectownershipofforeignfirms3Copyright?2009PearsonAddison-Wesley.Allrightsreserved.Movementsin

FactorsofProduction(cont.)Likemovementsofgoodsandservices(trade),movementsoffactorsofproductionarepoliticallysensitiveandareoftenrestricted.RestrictionsonimmigrationRestrictionsonfinancialassetflows(lesscommontodayinEuropeandU.S.)Restrictionsontheactivitiesofmultinationalcorporations4Copyright?2009PearsonAddison-Wesley.Allrightsreserved.InternationalLaborMobilityToshowtheeffectsoflabormigration(mobility),let’sbuildasimplemodelwithonlyonecompositegoodcalledoutput.Supposethatthereareonlytwoimportantfactorsofproduction:landandlabor.Onafixedparcelofland,theproductivityofworkerseventuallydiminishesaseachworksmorehoursandasmoreworkersproduceonthatfixedparcelofland.Themarginalproductivityoflaboreventuallydecreases.5Copyright?2009PearsonAddison-Wesley.Allrightsreserved.Fig.7-1:AnEconomy’sProductionFunction6Copyright?2009PearsonAddison-Wesley.Allrightsreserved.Fig.7-2:TheMarginalProductofLabor7Copyright?2009PearsonAddison-Wesley.Allrightsreserved.InternationalLaborMobility(cont.)Theproductivityoflabordependsontheamountofworkandnumberorworkers.Incompetitivemarkets,firmscanaffordtopayonlywageswhosepurchasingpowerequalsthemarginalproductivityoftheworkersearningthewages.Theareaunderthemarginalproduct(ivity)oflaborcurveequalsthevalueofoutputproduced,whichequalsthevalueofwagesandincomepaidtofactorsofproductionwhenmarketsarecompetitive.8Copyright?2009PearsonAddison-Wesley.Allrightsreserved.InternationalLaborMobility(cont.)Ifthedomesticcountryisalaborabundantcountryandtheforeigncountryisalandabundantcountry,themarginalproductivityofdomesticworkersislessandtheythereforearepredictedtoearnlessthanthoseintheforeigncountry,iftechnologyandotherfactorsofproductionarethesameacrosscountries.Thereisanincentivefordomesticworkerstomovetotheforeigncountry.9Copyright?2009PearsonAddison-Wesley.Allrightsreserved.InternationalLaborMobility(cont.)Workersinthedomesticcountryhaveanincentivetomovetotheforeigncountry

untilthepurchasingpowerofwagesbetweenthecountriesareequal.Emigrationfromthedomesticcountryraisesrealwagesoftheremainingworkersthere.Itincreasesthesupplyoflaborservicesanddecreasestherealwageintheforeigncountry.10Copyright?2009PearsonAddison-Wesley.Allrightsreserved.InternationalLaborMobility(cont.)11Copyright?2009PearsonAddison-Wesley.Allrightsreserved.Fig.7-3:CausesandEffectsofInternationalLaborMobility12Copyright?2009PearsonAddison-Wesley.Allrightsreserved.InternationalLaborMobility(cont.)Labormigrationbetweenthedomesticcountryandtheforeigncountryisalsopredictedtoincreasethevalueofworldoutput.ThevalueofforeignoutputrisesbytheareaunderitsMPL*curvefromOL1toOL2ThevalueofdomesticoutputfallsbytheareaunderitsMPLcurvefromOL2toOL1

Thevalueofworldoutputismaximizedwhenthemarginalproductivityoflaboristhesameacrosscountries.13Copyright?2009PearsonAddison-Wesley.Allrightsreserved.InternationalLaborMobility(cont.)TheHeckscher-Ohlinmodelpredictsthattradeingoodsisanalternativetofactormobility.Servicesfromfactorsofproductionare“embodied”ingoods,sothatthevalueofgoodsreflectsthevalueorproductivityofthefactorsofproductionthatproducedthem.ButequalizationoffactorpriceswithlabormobilitydoesnotreallyoccurforreasonsthataresimilartothereasonsgivenintheHeckscher-Ohlinmodel:14Copyright?2009PearsonAddison-Wesley.Allrightsreserved.InternationalLaborMobility(cont.)Themodelassumesthattradingcountriesproducethesamegoods,butcountriesmayproducedifferentgoodssothatmarginalproductivitiesoflaborarenotcomparable.Themodelassumesthattradingcountrieshavethesametechnology,butdifferenttechnologiescouldaffecttheproductivitiesoffactorsandthereforethewagesandincomepaidtothesefactors.15Copyright?2009PearsonAddison-Wesley.Allrightsreserved.InternationalLaborMobility(cont.)Barrierstoimmigrationandemigrationandtransportationcostsmaypreventthepurchasingpowerofwagesfromequalizing.Barrierstomovementsforotherfactorsofproduction,likelandandcapital,arealsoimportant.16Copyright?2009PearsonAddison-Wesley.Allrightsreserved.ImmigrationandtheU.S.EconomyInthepastgeneration,immigrationintheU.S.hasincreasedsubstantially,especiallyamongworkerswiththelowesteducationlevelsandthehighesteducationlevels.Thelargestincreaseinimmigrationoccurredamongworkerswiththelowesteducationlevels,makinglesseducatedworkersmoreabundant,possibly

causing

a

widening

wage

gap

between

lesseducatedworkersandhighlyeducatedworkers.17Copyright?2009PearsonAddison-Wesley.Allrightsreserved.Fig.7-4:ImmigrantsasaPercentageoftheU.S.Population.18Copyright?2009PearsonAddison-Wesley.Allrightsreserved.ImmigrationandtheU.S.Economy(cont.)ButimmigrationcannotwhollyexplainthewideningincomedistributionintheU.S.ThefractionofU.S.workerswithoutahighschooldiplomafell,whilethatwithacollegeeducationrose,during1980–1990.Morehighlyeducatedworkersbecamemoreabundant.Sowhydidthewageofhighlyeducatedworkersriserelativetothatofloweducatedworkers?Possiblyduetotechnologicalchangesthatmadeeducationmorevaluabletoemployers.19Copyright?2009PearsonAddison-Wesley.Allrightsreserved.InternationalBorrowingandLendingInternationalcapitalmobilityreferstomobilityoffinancial

assets,

orcapital,

across

countries.Financialcapitalisasourceoffundsusedtobuildphysicalcapital(ex.,factoriesandequipment).Internationalcapitalmobilitycanbeinterpretedasintertemporaltrade:tradeofgoodsconsumedtodaybyborrowers

inreturnforgoodsconsumedinthefuture

bylenders.20Copyright?2009PearsonAddison-Wesley.Allrightsreserved.International

BorrowingandLending(cont.)Foranyeconomy,thereisatrade-off(opportunitycost)betweenconsumingtodayandsavingforthefuture:resourcescaneitherbeconsumedorsaved.Tosaveandinvestmoretodaytypicallymeansthateconomiesneedtoconsumelesstoday.Werepresentthisconceptbydrawingaspecialkindofproductionpossibilityfrontier,anintertemporalproductionpossibilityfrontier.21Copyright?2009PearsonAddison-Wesley.Allrightsreserved.Fig.7-5:TheIntertemporalProductionPossibilityFrontier22Copyright?2009PearsonAddison-Wesley.Allrightsreserved.InternationalBorrowingandLendingSomecountrieswillhaveacomparativeadvantageinspendingcurrentoutput/income(incurrentconsumption).Otherswillhaveoneinsavingcurrentoutput/income(infutureconsumption).Acomparativeadvantageincurrentconsumptionwouldmeanaloweropportunitycostofspendingcurrentincome.wouldbereflectedinanintertemporalPPFthatisbiasedtowardcurrentconsumption.23Copyright?2009PearsonAddison-Wesley.Allrightsreserved.International

BorrowingandLending(cont.)Supposethatthedomesticcountryhasacomparativeadvantagein(biastowards)currentconsumption,whiletheforeigncountryhasacomparativeadvantage(biastowards)futureconsumption.Intheabsenceofinternationalborrowingandlending,therelativepriceofcurrentconsumptionshouldbelowerinthedomesticcountry.Butwhatistherelativepriceofcurrentconsumption?24Copyright?2009PearsonAddison-Wesley.Allrightsreserved.International

BorrowingandLending(cont.)Thepriceofborrowing1unitofoutput/incometoconsumetodayistheoutput/incomethatneedstoberepaidinthefuture:principal+interest=1+r,whereristheinterestrateThepriceofcurrentconsumptionrelativetofutureconsumptionis1/(1+r)Theopportunitycostofconsuming1unitofoutput/incometodayistheoutput/incomethatcouldbeearnedbysavingit:principal+interest=1+r,whereristheinterestrateTheopportunitycostofcurrentconsumptionrelativetofutureconsumptionis1/(1+r)25Copyright?2009PearsonAddison-Wesley.Allrightsreserved.International

BorrowingandLending(cont.)Ifinternationalborrowingandlendingareallowed,thedomesticcountrywill“export”currentconsumption(thatis,borrow).Thedomesticcountryinitiallyhasalowerrelativepriceofcurrentconsumption1/(1+r)Thedomesticcountryinitiallyhasahigher

interestrater.Ahigherinterestraterimpliesahigherreturntoconsumptionandinvestmentinproductionprocesses:theyarehighlydesirableandprofitablesothatthedomesticcountryshouldborrowfromforeignlenders.26Copyright?2009PearsonAddison-Wesley.Allrightsreserved.ForeignDirectInvestmentForeigndirectinvestmentreferstoinvestmentinwhichafirminonecountrydirectlycontrolsorownsasubsidiaryinanothercountry.Ifaforeigncompanyinvestsinatleast10%ofthestockinasubsidiary,thetwofirmsaretypicallyclassifiedasamultinationalcorporation.10%ormoreofownershipinstockisdeemedtobesufficientfordirectcontrolofbusinessoperations.Inaddition,internationalborrowingandlendingsometimesoccursbetweenaparentcompanyanditssubsidiary.27Copyright?2009PearsonAddison-Wesley.Allrightsreserved.TheoryofMultinationalCorporationsWhyaremultinationalcorporationscreatedandwhydotheyundertakedirectforeigninvestment?WerephrasethesequestionsintothosedealingwithLocation:Whyisagoodproducedintwocountriesratherthaninonecountryandthenexportedtothesecondcountry?Internalization:Whyisproductionindifferentlocationsdonebyonefirmratherthanby

separatefirms?28Copyright?2009PearsonAddison-Wesley.Allrightsreserved.Theoryof

MultinationalCorporations(cont.)Whyproductionoccursinseparatelocationsisoftendeterminedbythelocationofnecessaryfactorsofproduction:miningoccurswheremineralsare;laborintensiveproductionoccurswhererelativelylargenumbersofworkerslive.transportationcostsandotherbarrierstotrademayalsoinfluencethelocationofproduction.Thesefactorsalsoinfluencethepatternoftrade.29Copyright?2009PearsonAddison-Wesley.Allrightsreserved.Theoryof

MultinationalCorporations(cont.)Internalizationoccursbecauseitismoreprofitabletoconducttransactionsandproductionwithinasingleorganizationthaninseparateorganizations.Reasonsforthisinclude:Technologytransfers:transferofknowledgeoranotherformoftechnologymaybeeasierwithinasingleorganizationthanthroughamarkettransactionbetweenseparateorganizations.Patentorpropertyrightsmaybeweakornon-existent.Knowledgemaynotbeeasilypackagedandsold.30Copyright?2009PearsonAddison-Wesley.Allrightsreserved.Theoryof

MultinationalCorporations(cont.)Verticalintegrationinvolvesconsolidationofdifferentstagesofaproductionprocess.Verticalintegrationinvolvesconsolidationofonefirmthatproducesagoodwhichisaninputforaanotherfirm.Thismaybemoreefficientthanhavingproductionoperatedbyseparatefirms.Forexample,havingfarmsandflourmillsconsolidateintooneorganizationtomakeflourmaybemoreefficientthanhavingseparateorganizations.31Copyright?2009PearsonAddison-Wesley.Allrightsreserved.Table7-1:EmploymentbyForeign-OwnedFirmsintheUnitedStates32Copyright?2009PearsonAddison-Wesley.Allrightsreserved.Fig.7-6:FlowsofCapitaltoDevelopingCountries,asPercentageofAdvanced-CountryGDP33Copyright?2009PearsonAddison-Wesley.Allrightsreserved.SummaryAsimplemodelofinternationallabormobilitypredictsthatlaborwillmigratetocountrieswithhigherlaborproductivityandhigherrealwages.RealwagesarepredictedtofallduetoimmigrationRealwagesarepredictedtoriseduetoemigrationDuetothefactthatcountriesdonotproducethesamegoods,duetodifferencesintechnologyandduetoimmigrationbarriers;realwagesacrosscountriesarefarfromequal.34Copyright?2009PearsonAddison-Wesley.Allrightsreserved.Summary(cont.)Internationalborrowingandlendingcanbedescribedasintertemporaltrade,wherecountrieswithprofitableinvestmentopportunitiesborrowfundstodayandrepaylendersinthefuture,benefitingbothborrowersandlenders.Thepriceofcurrentconsumptionrelativetothepriceoffutureconsumptionisafunctio