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Chapter Five
Beyond Comparative Advantage: Empirical Evidence and New Trade Theories
Copyright © 2006 South-Western/Thomson Learning
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Table 1: The Leontief Paradox
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Table 2: Leamer’s Reformulation of Leontief Test, Corrected For Unbalanced U.S. Trade
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Table 3: Intra-Industry Trade Indexes, 1985
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Figure 1: Location Can Cause Intra-Industry Trade in Homogeneous Goods
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Table 4: Ratio of Merchandise Trade to Merchandise Value-Added, 1980, 1990, 2000 (Percent)
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Figure 2: Internal and External Scale Economics
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Figure 3: Mutually Beneficial Trade Based Solely on Scale Economies
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Figure 4: Internal Scale Economies as a Basis for Trade Between Identical Countries
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Figure 4a: Internal Scale Economies as a Basis for Trade Between Identical Countries
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Figure 4b: Internal Scale Economies as a Basis for Trade Between Identical Countries
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Figure 4c: Internal Scale Economies as a Basis for Trade Between Identical Countries
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Figure 4d: Internal Scale Economies as a Basis for Trade Between Identical Countries
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Figure 5: External Scale Economies and Comparative Advantage
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Figure 6: Interaction of External Scale Economies and Comparative Advantage
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Figure 7: Dynamic External Economies and the Learning Curve
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Figure 8: Similar Tastes and Trade: The Overlapping-Demand Hypothesis
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Figure 9: Direction of MerchandiseExports, 2001
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Figure 10: Transportation Costs and the International Market for Good X
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Figure 11: Elasticities of Scale by Industry
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Figure 12: Asia-U.S. Trade Routes