Reading 17
MODULE 17.1: INTERNATIONAL TRADE
Describe the benefits and costs of international trade.
Historically, economic models of trade have focused on the gains that result when countries with lower relative cost of (a comparative advantage in) the production of a good specialize in producing that good and export it, importing goods for which other countries have a lower relative cost of production. This increases the total output of goods and the wealth of both countries. Comparative advantage results from differences in technology and resource endowments across countries.
Newer models of trade emphasize gains from economies of scale that reduce costs of export goods, an increased variety of goods produced, decreasing costs and improved quality from additional competition, and more efficient allocation of productive resources.
Free trade can also benefit consumers by reducing the pricing power of domestic monopolies. Countries that produce the same good can also operate in a market of monopolistic competition with differentiated products. Consider the global market for automobiles. Several countries export one type of autos and import other types. Consumers benefit from the greater variety offered, as well as the reduced costs from specialization.
傳統貿易經濟模型的核心在於：當各國就自身具有比較優勢（comparative advantage）（亦即相對生產成本較低）的商品進行專業化生產，並出口這些商品、進口其他國家相對成本較低的商品時，兩國的總產出與財富均能提升。比較優勢源自各國技術水準與資源稟賦的差異。
較新的貿易模型則強調以下幾種利益：規模經濟壓低出口商品成本、商品種類增加、更多競爭帶來的成本下降與品質提升，以及生產資源更有效率的配置。
自由貿易也能透過削弱國內獨占廠商的定價能力而嘉惠消費者。生產同類商品的各國，也可能在差異化產品的獨占性競爭市場中共存。以全球汽車市場為例：許多國家既出口某些車型，也進口其他車型，消費者因此享有更多元的選擇及專業化帶來的成本節省。
While domestic consumers of imported goods and domestic producers of exported goods both gain, international trade imposes costs as well. The most cited costs of free trade are the loss of domestic jobs in an importing industry and increased economic inequality. Consider a country with a comparative advantage in the production of steel that exports to another country with a higher relative cost of steel production. When free trade is permitted, consumers of steel in the importing country gain and workers and producers of steel lose. In the exporting country, increased demand for steel production may increase prices to domestic consumers, while workers and companies in the steel industry will gain, at least in the short run.
In a situation where labor costs are lower in the exporting country, free trade can decrease wages and employment in the domestic economy. Consider textile production in a country with a relatively high cost of labor. For a labor-intensive industry such as some textile production, importing textiles from a lower-cost country will result in job and wage losses in the domestic industry, possibly increasing income inequality.
When we speak of the gains from trade in general, it is based on economic analysis suggesting that, overall, the gains from trade are greater than the losses—especially in the long run. That is, the gainers could, at least in theory, compensate the losers, with net gains shared by both importing and exporting countries. While free trade surely imposes costs on the workers and companies in an industry facing competition from imports in the short run, it is argued that in the long run—after workers receive additional training and find work in other industries—the short-run costs of free trade are mitigated to some significant degree, or even reversed.
雖然進口品的國內消費者和出口品的國內生產者都能從國際貿易中獲益，但自由貿易也帶來成本。最常被提及的成本是：進口競爭導致國內就業機會流失，以及經濟不平等加劇。以具有鋼鐵比較優勢的出口國為例：允許自由貿易後，進口國的鋼鐵消費者受益，但進口國的鋼鐵工人和生產者受損；出口國方面，鋼鐵需求增加可能推高國內售價，損及消費者，但鋼鐵業的工人和企業至少在短期內能獲益。
若出口國勞動力成本較低，自由貿易可能壓低進口國的工資並減少就業。以高勞動力成本國家的紡織業為例：從低成本國家進口紡織品，將導致本國紡織業工人失業、工資下滑，可能擴大所得不平等。
然而，整體而言，貿易利得大於貿易損失——尤其就長期而言。理論上，得益者可以補償受損者，進出口雙方均能分享淨利益。短期內，面臨進口競爭的產業工人和企業確實承受成本，但長期來看——當工人接受再培訓並在其他產業找到工作後——自由貿易的短期成本會大幅減輕，甚至出現逆轉。
Compare types of trade restrictions, such as tariffs, quotas, and export subsidies, and their economic implications.
There are many reasons (at least stated reasons) given by governments that impose trade restrictions. Some have support among economists as conceivably valid in terms of increasing a country's welfare, while others get little or no support from economic theory. Some of the reasons for trade restrictions that have support from economists are as follows:
- Infant industry. Protection from foreign competition is given to new industries to give them an opportunity to grow to an internationally competitive scale and get up the learning curve in terms of efficient production methods.
- National security. Even if imports are cheaper, it may be in the country's best interest to protect producers of goods crucial to the country's national defense so that those goods are available domestically in the event of conflict.
Other arguments for trade restrictions that have little support in theory are as follows:
- Protecting domestic jobs. While some jobs are certainly lost, and some groups and regions are negatively affected by free trade, other jobs (in export industries or growing domestic goods and services industries) will be created, and prices for domestic consumers will be less without import restrictions.
- Protecting domestic industries. Industry firms often use political influence to get protection from foreign competition—usually to the detriment of consumers, who pay higher prices.
Other arguments include retaliation for foreign trade restrictions, government collection of tariffs (like taxes on imported goods), countering the effects of government subsidies paid to foreign producers, and preventing foreign exports at less than their cost of production (dumping).
政府實施貿易限制的理由（至少是宣稱的理由）多種多樣。其中部分獲得經濟學家的支持，理論上有助於提升國家福利；另一些則幾乎不受主流理論支持。
獲經濟學家支持的貿易限制理由：
- 幼稚產業（Infant industry）：對新興產業給予保護，使其有機會成長到具國際競爭力的規模，並在生產效率上累積學習曲線優勢。
- 國家安全（National security）：即使進口品更便宜，保護對國防至關重要的國內生產商，確保衝突時能就地取得，仍符合國家最大利益。
理論支持不足的貿易限制理由：
- 保護國內就業：雖然某些工作確實會流失，部分群體和地區受到負面影響，但出口產業或成長中的本國產業也會創造新就業，且少了進口限制，國內消費者得以享受更低廉的物價。
- 保護國內產業：業者往往透過政治影響力尋求保護，免受外國競爭，但這通常以消費者付出更高價格為代價。
其他常見理由還包括：報復外國的貿易限制、政府徵收關稅（類似進口稅）、抵消外國政府補貼的效果，以及防止外國以低於生產成本的價格傾銷（dumping）。
Types of Trade Restrictions
- Tariffs. These are taxes on imported goods collected by the government.
- Quotas. These are limits on the amount of imports allowed over some period.
- Export subsidies. These are government payments to firms that export goods.
- Minimum domestic content. This is the requirement that some percentage of product content must be from the domestic country.
- Voluntary export restraint. A country voluntarily restricts the amount of a good that can be exported, often in the hope of avoiding tariffs or quotas imposed by its trading partners.
貿易限制的主要類型：
- 關稅（Tariffs）：政府對進口商品徵收的稅。
- 配額（Quotas）：限制特定期間內進口量的上限。
- 出口補貼（Export subsidies）：政府補貼給出口商的款項。
- 最低國內含量要求（Minimum domestic content）：規定產品中必須有一定比例來自本國。
- 自願出口限制（Voluntary export restraint, VER）：出口國主動限制某商品的出口量，通常是為了避免遭進口國課徵關稅或配額。
Economic Implications of Trade Restrictions
A tariff placed on an imported good increases its domestic price, decreases the quantity imported, and increases the quantity supplied domestically. Domestic producers gain, foreign exporters lose, and the domestic government gains by the amount of the tariff revenues.
A quota restricts the quantity of a good imported to the quota amount. Domestic producers gain, and domestic consumers lose from an increase in the domestic price. The right to export a specific quantity to the domestic country is granted by the domestic government, which may or may not charge for the import licenses to foreign countries. If the import licenses are sold, the domestic government gains the revenue.
We illustrate the overall welfare effects of quotas and tariffs for a small country in Figure 17.1. We define a quota that is equivalent to a given tariff as a quota that will result in the same decrease in the quantity of a good imported as the tariff. Defined this way, a tariff and an equivalent quota both increase the domestic price from \(P_{world}\), the price that prevails with no trade restriction, to \(P_{protection}\).
At \(P_{world}\), before any restriction, the domestic quantity supplied is \(QS_1\), and the domestic quantity demanded is \(QD_1\), with the difference equal to the quantity imported, \(QD_1 - QS_1\). Placing a tariff on imports increases the domestic price to \(P_{protection}\), increases the domestic quantity supplied to \(QS_2\), and decreases the domestic quantity demanded to \(QD_2\). The difference is the new quantity imported. An equivalent quota will have the same effect, decreasing the quantity imported to \(QD_2 - QS_2\).
The entire shaded area in Figure 17.1 represents the loss of consumer surplus in the domestic economy. The portion with vertical lines, the area to the left of the domestic supply curve between \(P_{protection}\) and \(P_{world}\), represents the gain in the producer surplus of domestic producers. The portion with horizontal lines, the area bounded by \(QD_2 - QS_2\) and \(P_{protection} - P_{world}\), represents the gain to the domestic government from tariff revenue. The two remaining triangular areas are the deadweight loss from the restriction on free trade.
| Effect | Tariff | Equivalent Quota |
|---|---|---|
| Domestic price | Rises to Pprotection | Rises to Pprotection |
| Domestic quantity supplied | Increases (QS₁ → QS₂) | Increases (QS₁ → QS₂) |
| Domestic quantity demanded | Decreases (QD₁ → QD₂) | Decreases (QD₁ → QD₂) |
| Quantity imported | Decreases to QD₂ − QS₂ | Decreases to QD₂ − QS₂ |
| Consumer surplus | Decreases | Decreases |
| Producer surplus | Increases | Increases |
| Government revenue | Collects tariff revenue | Depends on license pricing |
| Quota rents | N/A | Go to foreign exporters if no license fee |
| Deadweight loss | Two triangles | Two triangles |
關稅（Tariff）對進口品課稅後，會提高其國內售價、減少進口量、增加國內供給量。國內生產者受益，外國出口商受損，國內政府則收入關稅收益。
配額（Quota）將進口量限制在配額量。國內生產者受益；由於國內價格上漲，國內消費者受損。進口許可的核發由國內政府決定，是否向外國收取許可費則因地而異。若政府出售進口許可，則能獲得這部分收入。
圖 17.1 說明關稅與配額對小型國家整體福利的影響。所謂「等效配額」，是指與某一關稅造成相同進口減少量的配額。關稅與等效配額均使國內價格從無限制時的世界價格（\(P_{world}\)）上升至保護價格（\(P_{protection}\)）。
在 \(P_{world}\) 時，國內供給量為 QS₁，國內需求量為 QD₁，進口量 = QD₁ − QS₁。課徵關稅後，國內價格升至 \(P_{protection}\)，國內供給升至 QS₂，國內需求降至 QD₂，新的進口量 = QD₂ − QS₂；等效配額效果相同。
圖中所有陰影面積代表消費者剩餘的損失。垂直線部分（供給曲線左側，\(P_{protection}\) 與 \(P_{world}\) 之間）是國內生產者獲得的生產者剩餘增量。水平線部分（對應 QD₂ − QS₂ 乘以 \(P_{protection} − P_{world}\)）是政府徵得的關稅收益。剩餘兩個三角形為自由貿易受限所造成的無謂損失（deadweight loss）。
In the case of a quota, if the domestic government collects the full value of the import licenses, the result is the same as for a tariff. If the domestic government does not charge for the import licenses, this amount is a gain to those foreign exporters who receive the import licenses under the quota and are termed quota rents.
In terms of overall economic gains from trade, the deadweight loss is the amount of lost welfare from the imposition of a quota or tariff. From the viewpoint of the domestic country, the loss in consumer surplus is only partially offset by the gains in domestic producer surplus and the collection of tariff revenue. If none of the quota rents are captured by the domestic government, the overall welfare loss to the domestic economy is greater by the amount of the quota rents. It is the entire difference between the gain in producer surplus and the loss of consumer surplus.
A voluntary export restraint (VER) is just as it sounds. It refers to a voluntary agreement by a government to limit the quantity of a good that can be exported. VERs are another way of protecting the domestic producers in the importing country. They result in a welfare loss to the importing country equal to that of an equivalent quota with no government charge for the import licenses—that is, no capture of the quota rents.
Export subsidies are payments by a government to its country's exporters. Export subsidies benefit producers (exporters) of the good but increase prices and reduce consumer surplus in the exporting country. In a small country, the price will increase by the amount of the subsidy to equal the world price plus the subsidy. In the case of a large exporter of the good, the world price decreases and some benefits from the subsidy accrue to foreign consumers, while foreign producers are negatively affected.
Most of the effects of all four of these protectionist policies are the same. With respect to the domestic (importing) country, import quotas, tariffs, and VERs all do the following:
- Reduce imports
- Increase price
- Decrease consumer surplus
- Increase domestic quantity supplied
- Increase producer surplus
With one exception, all will decrease national welfare. Quotas and tariffs in a large country could increase national welfare under a specific set of assumptions, primarily because for a country that imports a large amount of the good, setting a quota or tariff could reduce the world price for the good.
就配額而言，若國內政府收取進口許可的全部費用，效果與關稅相同。若政府不收許可費，則獲得許可的外國出口商將享有這筆利益，稱為配額租金（quota rents）。
整體來看，關稅或配額造成的無謂損失即是福利損失。從進口國角度，消費者剩餘的損失只有部分被國內生產者剩餘的增加和關稅收入所補償。若配額租金全未由政府捕捉，整體福利損失更大——等於生產者剩餘增量與消費者剩餘損失之間的全部差額。
自願出口限制（VER）是一國政府自願限制某商品出口量的協議。VER 是保護進口國國內生產者的另一種方式。它對進口國造成的福利損失等同於不收取進口許可費的等效配額——亦即配額租金完全流向外國出口商，進口國政府分文未得。
出口補貼（Export subsidies）是政府支付給本國出口商的款項。出口補貼有利於出口商，但會推高出口國的國內價格、縮減消費者剩餘。對小型出口國而言，國內價格將上漲補貼金額，等於世界價格加上補貼。對大型出口國而言，世界價格因此下跌，部分補貼利益流向外國消費者，而外國生產者則受負面影響。
上述四種保護主義政策對進口國的影響大致相同：進口配額、關稅和 VER 均會——
- 減少進口量
- 推高國內價格
- 縮減消費者剩餘
- 增加國內供給量
- 提升生產者剩餘
除一個例外，所有措施均會降低國家整體福利。在大型國家的情況下，配額或關稅有可能在特定假設條件下提升國家福利——因為大量進口某商品的大國，藉由設置配額或關稅可能壓低該商品的世界價格，從而獲益。
Capital Restrictions
Some countries impose capital restrictions on the flow of financial capital across borders. Restrictions include outright prohibition of investment in the domestic country by foreigners, prohibition of or taxes on the income earned on foreign investments by domestic citizens, prohibition of foreign investments in certain domestic industries, and restrictions on repatriation of earnings of foreign entities operating in a country.
Overall, capital restrictions are thought to decrease economic welfare. However, over the short term, they have helped developing countries avoid the impact of great inflows of foreign capital during periods of optimistic expansion and the impact of large outflows of foreign capital during periods of correction and market unease, or outright panic. Even these short-term benefits may not offset longer-term costs if the country is excluded from international markets for financial capital flows.
部分國家對跨境金融資本流動設置資本管制（capital restrictions），包括：禁止外國人在本國投資、禁止或課稅本國公民的境外投資所得、禁止外資進入特定國內產業，以及限制外資企業在本國的盈餘匯回。
整體而言，資本管制被認為會降低經濟福利。然而，短期內它確實幫助了一些開發中國家，在景氣過熱時避免大量外資湧入、在市場修正或恐慌時避免外資大規模撤離的衝擊。即使如此，若國家因此被排除在國際金融資本市場之外，這些短期利益未必能抵銷長期成本。
Explain motivations for and advantages of trading blocs, common markets, and economic unions.
There are various types of agreements among countries with respect to trade policy. The essence of all of them is to reduce trade barriers among the countries. Reductions in trade restrictions among countries have some, by now familiar, positive and negative effects on economic welfare. The positive effects result from increased trade according to comparative advantage, as well as increased competition among firms in member countries. The negative effects result because some firms, some industries, and some groups of workers will see their wealth and incomes decrease. Workers in affected industries may need to learn new skills to get new jobs.
On balance, economic welfare is improved by reducing or eliminating trade restrictions. Note, however, that to the extent that a trade agreement increases trade restrictions on imports from nonmember countries, economic welfare gains are reduced and, in an extreme case, could be outweighed by the costs such restrictions impose. This could result if restrictions on trade with nonmember countries increase a country's (unrestricted) imports from a member that has higher prices than the country's previous imports from a nonmember.
We list these types of agreements, generally referred to as trading blocs or regional trading agreements (RTAs), in order of their degrees of integration.
各國間存在多種貿易政策協議，其核心均在於降低成員國之間的貿易壁壘。降低貿易限制帶來的正面效果包括：依據比較優勢擴大貿易，以及成員國企業間競爭加劇。負面效果則是：部分企業、產業及工人的財富和收入將下滑，受影響的工人可能需要學習新技能轉職。
整體而言，降低或消除貿易限制能提升經濟福利。但須注意：若貿易協議同時提高對非成員國進口品的限制，福利增益將縮小，極端情況下甚至可能被這些限制的成本所抵消。這種情況可能出現在：對非成員國設置限制後，本國轉而從價格較高的成員國進口，而此前本可從非成員國以更低價進口的情況下。
以下按整合程度由低至高，列出各類貿易協議（統稱貿易集團 trading blocs 或區域貿易協定 RTAs）：
Free Trade Areas
- All barriers to import and export of goods and services among member countries are removed.
Customs Union
- All barriers to import and export of goods and services among member countries are removed.
- All countries adopt a common set of trade restrictions with nonmembers.
Common Market
- All barriers to import and export of goods and services among the countries are removed.
- All countries adopt a common set of trade restrictions with nonmembers.
- All barriers to the movement of labor and capital goods among member countries are removed.
Economic Union
- All barriers to import and export of goods and services among the countries are removed.
- All countries adopt a common set of trade restrictions with nonmembers.
- All barriers to the movement of labor and capital goods among member countries are removed.
- Member countries establish common institutions and economic policy for the union.
Monetary Union
- All barriers to import and export of goods and services among the countries are removed.
- All countries adopt a common set of trade restrictions with nonmembers.
- All barriers to the movement of labor and capital goods among member countries are removed.
- Member countries establish common institutions and economic policy for the union.
- Member countries adopt a single currency.
The North American Free Trade Agreement (NAFTA) is an example of a free trade area, the European Union (EU) is an example of an economic union, and the Eurozone is an example of a monetary union.
| 類型 | 特徵（累加） | 實例 |
|---|---|---|
| 自由貿易區 Free Trade Area |
成員國間商品與服務貿易壁壘全部取消 | NAFTA |
| 關稅同盟 Customs Union |
同上 + 對非成員國採行統一貿易限制 | — |
| 共同市場 Common Market |
同上 + 取消成員國間勞動力與資本流動壁壘 | — |
| 經濟聯盟 Economic Union |
同上 + 建立共同機構與統一經濟政策 | 歐盟（EU） |
| 貨幣聯盟 Monetary Union |
同上 + 採行單一貨幣 | 歐元區（Eurozone） |
整合程度由低至高：自由貿易區 → 關稅同盟 → 共同市場 → 經濟聯盟 → 貨幣聯盟。每進一個層級，即在前一層級基礎上新增整合條件，深化成員國的政策協調程度，並降低跨境交易成本。
- A. Increased prices of consumer goods.
- B. Greater specialization in domestic output.
- C. Decreased employment in exporting industries.
- A. quota.
- B. voluntary export restraint.
- C. minimum domestic content rule.
- A. Domestic steel producers.
- B. Workers in the domestic auto industry.
- C. Workers in the domestic steel industry.
- A. increase economic welfare in the member countries.
- B. increase tariff revenue for the member governments.
- C. protect domestic industries in the member economies.
- A. Free trade area.
- B. Common market.
- C. Economic union.
Free trade among countries increases overall economic welfare. Countries can benefit from trade because one country can specialize in the production of an export good and benefit from economies of scale. Economic welfare can also be increased by greater product variety, more competition, and a more efficient allocation of resources.
Costs of free trade are primarily losses to those in domestic industries that lose business to foreign competition, especially less efficient producers who leave an industry. While other domestic industries will benefit from freer trade policies, unemployment may increase over the period in which workers are retrained for jobs in the expanding industries. Some argue that greater income inequality may result, but overall, the gains from liberalization of trade policies are thought to exceed the costs, so that the winners could conceivably compensate the losers and still be better off.
Types of trade restrictions include the following:
- Tariffs. These are taxes on imported goods collected by the government.
- Quotas. These are limits on the amount of imports allowed over some period.
- Minimum domestic content. This is the requirement that some percentage of product content must be from the domestic country.
- Voluntary export restraints. A country voluntarily restricts the amount of a good that can be exported, often in the hope of avoiding tariffs or quotas imposed by their trading partners.
Within each importing country, all of these restrictions will tend to do the following:
- Increase prices of imports and decrease quantities of imports
- Increase demand for and quantity supplied of domestically produced goods
- Increase producer's surplus and decrease consumer surplus
Export subsidies decrease export prices and benefit importing countries at the expense of the government of the exporting country. Restrictions on the flow of financial capital across borders include outright prohibition of investment in the domestic country by foreigners, prohibition of or taxes on the income earned on foreign investments by domestic citizens, prohibition of foreign investments in certain domestic industries, and restrictions on repatriation of earnings of foreign entities operating in a country.
Trade agreements, which increase economic welfare by facilitating trade among member countries, take the following forms:
- Free trade area. All barriers to the import and export of goods and services among member countries are removed.
- Customs union. Member countries also adopt a common set of trade restrictions with nonmembers.
- Common market. Member countries also remove all barriers to the movement of labor and capital goods among members.
- Economic union. Member countries also establish common institutions and economic policy for the union.
- Monetary union. Member countries also adopt a single currency to reduce the cost of cross-border trade.
LOS 17.a
各國自由貿易能提升整體經濟福利。貿易帶來的好處包括：依比較優勢進行專業化並享受規模經濟、商品種類增加、競爭加劇、資源配置更有效率。
自由貿易的成本主要落在失去競爭力的國內產業，尤其是效率不足而退出市場的生產者。雖然其他國內產業受益，但工人再培訓期間失業率可能上升，也有人擔憂所得不平等擴大。整體而言，貿易自由化的利得被認為超過成本——理論上，得益者可補償受損者且仍享有淨利益。
LOS 17.b
貿易限制類型：
- 關稅（Tariffs）：政府對進口品課稅。
- 配額（Quotas）：限制一段時間內允許進口的數量上限。
- 最低國內含量要求：規定一定比例的產品內容必須來自本國。
- 自願出口限制（VER）：出口國自願限制出口量，通常是為避免遭進口國的關稅或配額對待。
對進口國而言，上述限制均傾向於：提高進口品價格並減少進口量；增加國內商品需求與供給量；提升生產者剩餘並縮減消費者剩餘。
出口補貼壓低出口品售價，使進口國消費者受益，代價由出口國政府承擔。資本管制整體上被認為會降低福利，但對開發中國家可能提供短期穩定效果。
LOS 17.c
貿易協議按整合程度由低至高：
- 自由貿易區：取消成員國間商品與服務貿易壁壘（例：NAFTA）。
- 關稅同盟：另加：對非成員國採統一貿易限制。
- 共同市場：另加：取消成員國間勞動力與資本的流動壁壘。
- 經濟聯盟：另加：建立共同機構與統一經濟政策（例：歐盟）。
- 貨幣聯盟：另加：採行單一貨幣以降低跨境貿易成本（例：歐元區）。