Cvsvf

Obj. 1-2-3 PARA EL PRIMER CORTE
VÁLIDO PARA PC1 Y PP1


Specific Factors

In this model, labour mobility between industries is possible while capital is immobile between industries in the short-run. Thus, this model can be interpreted as a 'short run' version of the Hecksche-Ohlin model. The specific factors name refers to the given that in the short-run specific factors ofproduction, such as physical capital, are not easily transferable between industries. The theory suggests that if there is an increase in the price of a good, the owners of the factor of production specific to that good will profit in real terms. Additionally, owners of opposing specific factors of production (i.e. labour and capital) are likely to have opposing agendas when lobbying for controls overimmigration of labour. Conversely, both owners of capital and labour profit in real terms from an increase in the capital endowment. This model is ideal for particular industries. This model is ideal for understanding income distribution but awkward for discussing the pattern of trade!




[edit] New Trade Theory
Main article: New Trade Theory
New Trade theory tries to explain severalfacts about trade, which the two main models above have difficulty with. These include the fact that most trade is between countries with similar factor endowment and productivity levels, and the large amount of multinational production (i.e. foreign direct investment) which exists. In one example of this framework, the economy exhibits monopolistic competition, and increasing returns to scale.[edit] Gravity model
Main article: Gravity model of trade

The Gravity model of trade presents a more empirical analysis of trading patterns rather than the more theoretical models discussed above. The gravity model, in its basic form, predicts trade based on the distance between countries and the interaction of the countries' economic sizes. The model mimics the Newtonian law of gravitywhich also considers distance and physical size between two objects. The model has been proven to be empirically strong through econometric analysis. Other factors such as income level, diplomatic relationships between countries, and trade policies are also included in expanded versions of the model.


From Wikipedia, the free encyclopedia http://en.wikipedia.org/wiki/Main_PageC4-G2-2
[pic]Universidad Alejandro de Humboldt
Inglés Instrumental I - Objective 3
Cause/Effect CONNECTORS


1… because … , 2… because of … , 3… so … , 4… therefore … , 5… in consequence … ,
6 … then …, 7 … thus …, 8 … as a result (of) … , 9 … so + Adj. + that … , 10 … so that + clause,
11 … such + a (an) + Adj. + noun + that …, 12 … For this reason, …13 Due to (noun phrase)… ,14 As … , 15 If … , 16 Since …


http://www.grammar-quizzes.com/8-7.html


Observe these examples and try changing connectors …

1.- Why is it called the Gravity Model?
It’s called that way because it mimics the Newtonian Law of Gravity.

2.- They prefer not to import it because of its high tariff.

3.- They didn’t raise cattle, so they had to import it from Argentina!!!

4.-English is the international trading language. Therefore, it’s very important for us to learn it as a second language.

5.- There is an economic blockade to Cuba; in consequence, most of the countries do not export anything to that island.

6.- The Ricardian Model is based on the comparative advantage, then, according to this theory, countries have to focus
their attention on what theyproduce best.

7.- He is a smuggler, thus the guard of the port and customs authorities are hunting him.

8.- There is an increasing level in the demand. As a result of this, the offer is being scarce.

9.- That vessel was so wide that it couldn’t pass through Panama Canal.

10.- What’s the main reason for having to impose tariffs?
Well, governments want to protect the domestic industry...