Welcome to EC 382 International Economics By Dr Jacqueline Khorassani Study Guide Week Three Note You must go over these slides and complete every task outlined here before Wednesday September 19 1 This week We will try to cover two chapters It is very important that you study the chapters ahead of time and send me your questions If you don t ask I assume you know There will be a graded in class assignment this week 2 Chapter 3 The Factor Proportions Theory What does the theory try to do What are its assumption What are its conclusions 3 The Factor Proportions Theory What does the theory try to do What are its assumption What are its conclusions 4 Factor Price Equalization What does the theory try to do What are its assumption What are its conclusions What is the Stolper Samuelson Theorem 5 The Specific Factors Model What does the model try to do What are its assumption What are its conclusions 6 Does the empirical evidence support the factor proportions theory What is the Leontief paradox What are the explanations for the paradox 7 Chapter 4 How is an Intra industry trade different from an inter industry trade What is the Intra industry Trade Index ITI How are the homogenous goods different from the differentiated goods Why would a nation export and import homogenous goods What are the types of differentiated goods Why would a nation export and import differentiated goods 8 The Product Cycle Model Assumptions Goals of the model Conclusions of the model Graph 9 The overlapping demand model Assumptions Goals of the model Conclusions of the model 10 What are some welfare implications of intra industry trade 11