This video cover the Rybczynski Theorem, which asks: what happens if a factor of production increases in one country? Under some assumptions, the theorem hypothesizes that if labor migrates into a country, output and exports of the labor-intensive sector will go up. Also, output and exports of the capital-intensive sector will go down. This video also discusses how this theorem can be applied to real-world situations. International Trade course: http://mruniversity.com/courses/international-trade Ask a question about the video: http://mruniversity.com/courses/international-trade/rybczynski-theorem#QandA Next video: http://mruniversity.com/courses/international-trade/virtual-water ... https://www.youtube.com/watch?v=yBqL4xcLT3U

Sometimes a tariff can help a large country by shifting terms of trade in its favor. In the real world, it's not quite this simple. As we've seen, the less-large country or countries may retaliate. Indeed, one rationale for free trade agreements in that they help avoid mutually destructive outcomes when many countries try to shift the terms of trade in their favor, and they all end up worse off. International Trade course: http://mruniversity.com/courses/international-trade Ask a question about the video: http://mruniversity.com/courses/international-trade/optimal-tariffs#QandA Next video: http://mruniversity.com/courses/international-trade/tariffs-and-growth-19th-century ... https://www.youtube.com/watch?v=Nsbra8pIwuM