Modern Trade Theory Review

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Modern Trade Theory Review
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Characteristics of Pure CompMkt. S, D. Profits
and entryLoss and exit. LR. costs covered, no
NRgt0,
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Characteristics of Monopoly (X,P) Standard
diagram, Totals diagramEntry blocked. NRgt0.
Comp. and Reg. P. discrimination
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Characteristics of Oligopoly. Few.
Interdependence and uncertainty.Comp., price
wars, stability, cartels.
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Characteristics of monopolistic comp. Numbers
no interd. Entry/costs vs. different. Profits vs.
Licensing.
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America, home of big 3. Why import cars? What
does Ricardo say? What does Leontief say? Big 3
oligop. vs. world oligop. IIT.
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IIT Intra-industry TradeIIT Inter-industry
trade 1, orIIT 1 - Inter-industry trade.IIT
1 share of XM not matched by offsetting
MX.All trade is IIT if we export as many cars as
we import and import as many designer jeans as we
export.
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In Modern Theory, traded gs and ssglobal
markets. Why are wheat and cars global?Low
transp costs, econs of scale, Internal/external.
History (qwerty) matters.
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What kinds of markets? Monop? Pure comp? Oligop?
M.Comp? (Prod diff and tastes)