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Page 1: Copyright © 2004 South-Western 3 Interdependence and the Gains from Trade

Copyright © 2004 South-Western

33Interdependence and the Gains from Trade

Page 2: Copyright © 2004 South-Western 3 Interdependence and the Gains from Trade

Table 1 The Production Opportunities of the Farmer and Rancher

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Page 3: Copyright © 2004 South-Western 3 Interdependence and the Gains from Trade

Copyright © 2004 South-Western

Figure 1a The Production Possibilities Frontier

Page 4: Copyright © 2004 South-Western 3 Interdependence and the Gains from Trade

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Figure 1b The Production Possibilities Frontier

Page 5: Copyright © 2004 South-Western 3 Interdependence and the Gains from Trade

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Figure 2a How Trade Expands the Set of Consumption Opportunities

Page 6: Copyright © 2004 South-Western 3 Interdependence and the Gains from Trade

Copyright © 2004 South-Western

Figure 2b How Trade Expands the Set of Consumption Opportunities

Page 7: Copyright © 2004 South-Western 3 Interdependence and the Gains from Trade

Table 2 The Gains from Trade: A Summary

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Page 8: Copyright © 2004 South-Western 3 Interdependence and the Gains from Trade

Table 3 The Opportunity Cost of Meat and Potatoes

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Lecture 19 Interdependence & Coordination International Interdependence Theory: Interdependence results from capital mobility, even with floating rates

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Lecture PowerPoint® Slides to accompany 1. Chapter 3 Interdependence and the Gains from Trade 2 Copyright © 2011 Nelson Education Limited

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© 2010 South-Western, a part of Cengage Learning, all rights reserved C H A P T E R 2010 update Interdependence and the Gains from Trade M icroeconomics

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Interdependence and the Gains from Trade 1. A Parable for the Modern Economy Only two goods –Meat –Potatoes Only two people –Rancher –Farmer 2

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Interdependence and the Gains from Trade …mizu.lecture.ub.ac.id/files/2015/03/4.-Teori-Perdagangan.pdfINTERDEPENDENCE AND THE GAINS FROM TRADE 24 Opportunity Cost and Comparative

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