《国际贸易》芬斯特拉版人大版练习题答案.pdf

5 Movement of Labor and Capital between Countries 1. In the short-run specific-factors model, examine the impact on a small country fol- lowing a natural disaster that decreases its population. Assume that land is specific to agriculture, capital is specific to manufacturing, and labor is free to move between the two sectors. a. In a diagram similar to Figure 5-2, determine the impact of the decrease in work- force on the output of each industry and the equilibrium wage. Answer:The following diagram depicts a decrease in population (labor) in the specific-factors model. The origin for agriculture shifts inward by exactly the amount of the change in population, carrying with it the curve representing the marginal product of labor in agriculture. (Note: one could equivalently shift the origin and MPL curve in manufacturing and arrive at the same result. ) The new equilibrium is determined at the intersection of P ؒMPL and ( P ؒMPL )Ј, M M A A which corresponds to a higher wage WЈ. In manufacturing, the amount of labor decreases fro O Lto O LЈand the amount of capital remains the same. As a M M result, the output of manufacturing decreases. In agriculture, the amount of labor has decreased fro OL to O ЈLЈ (note that ( LЈ ϪL) is necessarily less than ЈϪO A A (O ) and the amount of land remains the same. As a result, the output of A A agriculture also decreases).