Teori H-O & Life Cycle

Teori perdagangan internasional adalah teori yang diciptakan oleh Bertil Ohlin dan Eli Heckscher, ekonom yang berasal dari Swedia, teori ini pertama kali muncul di dalam buku Bertil Ohlin yang bejudul “Inter regional and International Trade”.  Eli Heckscher sebenarnya adalah guru dari Bertil  Ohlin yang dimana teori-teorinya berdasarkan dari tulisan-tulisan gurunya, hingga kini, teorinya dikenal dengan istilah teori Heckscher-Ohlin atau disingkat dengan  Teori H-O. Teori H-O muncul karena adanya kelemahan dari teori klasik yang diciptakan oleh David Ricardo, yaitu Comparative Advantage. Comparative Advantage sendiri menjelaskan bahwa perdagangan internasional dapat terjadi karena adanya perbedaan dalam productivity of labor antar negara. Namun teori ini tidak memberikan penjelasan mengenai penyebab perbedaaan produktivitas tersebut. Teori H-O pun muncul dan memberikan penjelasan mengenai penyebab terjadinya perbedaan produktivitas tersebut, yaitu karena adanya jumlah atau proporsi faktor produksi yang dimiliki atau endowment masing-masing negara, sehingga menyebabkan terjadinya perbedaan harga barang yang telah dihasilkan. Oleh karena itu juga teori modern H-O disebut juga sebagai ‘The Proportional Factor Theory”. Dalam analisisnya, teori H-O menggunakan dua kurva. 

Isoquant

Yang dimaksud dengan isoquant adalah kurva yang merupakan tempat kedudukan titik-titik yang menunjukan kombinasi dua factor produksi guna menghasilkan tingkat produksi yang sama. Kurva isoquant memiliki cirri-ciri sama dengan kurva indefferensi dalam teori prilaku konsumen.

Isocost

Isocost adalah kurva yang menunjukan kedudukan dari titik-titik yang menunjukan kombinasi factor produksi yang dibeli oleh produsen dengan sejumlah anggaran tertentu. Kombiniasi pengunaan Ciri-ciri kurva isocost sama dengan budget line atau kurva garis anggaran dalam teori prilaku konsumen.

 

Siklus hidup produk adalah suatu konsep penting yang memberikan pemahaman tentang dinamika kompetitif suatu produk. Seperti halnya dengan manusia, suatu produk juga memiliki siklus atau daur hidup. Menurut Basu Swastha (1984:127-132), daur hidup produk itu di bagi menjadi empat tahap, yaitu :

1. Tahap perkenalan (introduction).

Pada tahap ini, barang mulai dipasarkan dalam jumlah yang besar walaupun volume penjualannya belum tinggi. Karena masih berada pada tahap permulaan, biasanya ongkos yang dikeluarkan tinggi terutama biaya periklanan. Promosi yang dilakukan memang harus agfesif dan menitikberatkan pada merek penjual.

2. Tahap pertumbuhan (growth).

            Dalam tahap pertumbuhan ini, penjualan dan laba akan meningkat dengan cepat. Karena permintaan sudah sangat meningkat dan masyarakat sudah mengenal barang bersangkutan, maka usaha promosi yang dilakukan oleh perusahaan tidak seagresif tahap sebelumnya.

3. Tahap kedewasaan (maturity).

            Pada tahap kedewasaan ini kita dapat melihat bahwa penjualan masih meningkat dan pada tahap berikutnya tetap. Dalam tahap ini, laba produsen maupun laba pengecer mulai turun. Persaingan harga menjadi sangat tajam sehingga perusahaan perlu memperkenalkan produknya dengan model yang baru.

4. Tahap kemunduran (decline)

            Hampir semua jenis barang yang dihasilkan oleh perusahaan selalu mengalami kekunoan atau keusangan dan harus di ganti dengan barang yang baru. Dalam tahap ini, barang baru harus sudah dipasarkan untuk menggantikan barang lama yang sudah kuno. Yang dapat dilakukan oleh manajemen pada saat penjualan menurun antara lain:

A.    Memperbarui barang (dalam arti fungsinya).

B.  Meninjau kembali dan memperbaiki progrcm pemasaran serta program produksinya agar lebih efisien.

C.     Menghilangkan ukuran, warna, dan model yang kurang baik.

D.    Menghilangkan sebagian jenis barang untuk mencapai laba optimum pada barang yang sudah ada.

E.     Meninggalkan sama sekali barang tersebut.

Mohammad Adityo Purnomo
1701352474 

http://eprints.undip.ac.id/789/1/Model_Perdagangan_HO_Darwanto.pdf
http://jurnal-sdm.blogspot.com/2010/01/siklus-hidup-produk-product-life-cycle_28.html

H-O theory and Product Life Cycle

Indonesian as a developing county, that have a abundant resources. But, Indonesian as a developing country do not have technology to support for processing resources. Mostly, Indonesian resources are managed by foreigners. As we see, U.S that have technology, managing Indonesia resources and take the resources to their country. Here we can see, that US have specialization in technology, so the US export the technology to other country because that's their specialization. it's one the example of H-O theory.

So, What is H-O theory? H-O theory said Comparative advantage arises from differences in national factor endowments (land, capital, labour) rather than productivity. H-O theory created by Eli Heckscher (1919) and Bertil Ohlin (1933). They laid the groundwork for substantial developments in the theory of international trade by focusing on the relationships between the composition of countries’ factor endowments and commodity trade patternsas well as the consequences of free trade forthe functional distribution of income within countries. The Conclusion is H-O theory states that countries export those commodities which require, for their production, relatively intensive use of those productive factors found locally in relative abundance. http://www.econ.rochester.edu/people/jones/Palgrave_Jones_on_Heckscher_Ohlin.pdf

So, if we see, Indonesia have so many population that created so many labour that Indonesia have. If we see from national factor endowments, Indonesia have excellence in labour. We always see in television, there's so many our labour that sent to other country, like Malaysia, Philippines, Vietnam and Saudi Arabia. Because our labour is abundant. So, we export the labour to other country. Because in technology, we are scarce on that. We always used technology from other country. Like U.S always export technology because they abundant on that. U.S also have the capital, if we see U.S build so many corporation in many country around the world. Because we can say, a country that have advanced technology, that can rule the world. So, Indonesia export labour commodities and import capital commodities.

What is the Product Life-Cycle Theory? The theory of a product life cycle was first introduced in the 1950s to explain the expected life cycle of a typical product from design to obsolescence, a period divided into the phases of product introduction, product growth, maturity, and decline. The goal of managing a product's life cycle is to maximize its value and profitability at each stage. Life cycle is primarily associated with marketing theory. http://www.inc.com/encyclopedia/product-life-cycle.html
 Thera are four stages in Product Life-Cycle Theory: first, Products introduction. Second, Growth. Third, Maturity and fourth, Decline.

I will choose one Industry, like Apple. In first stage, the company still promoted their products. They promote their products into public so that people know about their products. In this cases, the company don't get any profit from the market. Because they still promoted their products and spending a lot of money to try promoted their products. Second, The products start to growth. In this cases, the company get the profit but not significant. In third cases, the company start get many profit and they try to makes a new product. Example, when Iphone 4 get profit in the market and so many people buy it, Apple try to makes new products like Iphone 5. This is one of the company's strategy to get profit. Because the company see the products is salable in the market and they try to makes a new products to attract the attention of consumers. and the last is, Decline. In this stages, the products is not sold in the market because have been lost with another products. Like Iphone 3 with Iphone 5. Peoples prefer to choose Iphone 5 than Iphone 3. So, Iphone 3 is no longer produced and lost in the market.

Praditya Dewangga

02PD3

1701351862

Absolute Advantage vs. Comparative Advantage

In your opinion, in what way was Ricardo’s law of comparative advantage superior to Smith’s theory of absolute advantage?

                I will begin this topic with each explanation of absolute advantage and comparative advantage. Absolute advantage is the advantage which is earned by a country because of its own specialization and when there’s an extra goods, they’re focusing in it. Absolute advantage uses Labor Theory of Value. For example is Japan produce 6 units of clothing per work day while US produce 12 units and Japan produce 3 units of foods per work day while US produce 4 units. Here’s the table that I got from http://analystnotes.com/cfa-notes-describe-benefits-and-costs-of-international-trade.html:  

 It can be seen from the table that US has the absolute advantage, but if it applicable for all of goods, there will be no international trade. Besides, the Adam Smith’s theory is against mercantilist assumption (because Adam Smith developed the idea of capitalism in his book titled The Wealth of Nations) which gives states positive sum game. Next is comparative advantage by David Ricardo. Comparative advantage supports efficiency by producing more goods with a lower opportunity cost. It doesn’t matter with the absolute advantage of a country, what really matter is the comparative advantage. The system is like this, country A will produce lower cost goods in their country, but if it requires extra cost (more expensive) to process any goods in A, they’d rather import it from others (country B). Here’s a diagram for comparative advantage that I got from http://www.sy-econ.org/sse/sse-ITF-AACA.html:

Conclusion is that comparative advantage is more efficient or superior than absolute advantage cause it is more favorable in the way of amounts, trading and costs. It also keeps the international trade going between countries until now.

Athilla Meidictine Johanita

1701350235

Absolute Advantage VS Comparative Advantage

Absolute Advantage atau keunggulan mutlak adalah kemampuan suatu negara untuk menghasilkan barang atau jasa yang lebih banyak daripada negara lain, dengan menggunakan sumber daya yang sama ataupun dengan produksi barang yang sama. Absolute Advantage ditentukan oleh perbandingan sederhana dari produktivitas tenaga kerja. Dalam Absolute tidak terjadi perdagangan dengan pihak lain. Teori ini berasal dari buku yang berjudul “An Inquiry into the Nature and Causes of the Wealth of Nations” yang dibuat oleh Adam Smith tahun 1776. Menurutnya, suatu negara dapat disebut memiliki keunggulan mutlak dari negara lain jika negara tersebut memproduksi barang atau jasa yang tidak dapat diproduksi oleh negara lain.

            Comparative Advantage atau keunggulan komparatif terjadi jika dua negara atau lebih dapat sama-sama beruntung dari perdagangan tersebut. Jika suatu negara secara efisien dalam menghasilkan suatu barang, negara tersebut dapat berdagang dengan negara yang kurang efisien, selama mereka memiliki tingkat perbedaan efisiensi yang relatif besar. Teori ini berawal dari gambaran David Ricardo yang dijelaskan dalam buku “On the Principles of Political Economy and Taxation” pada tahun 1817 dalam sebuah contoh antara Inggris dan Portugal. Menurutnya, perdagangan internasional terjadi bila ada perbedaan keunggulan antarnegara. Ia berpendapat bahwa keunggulan komparatif akan tercapai jika suatu negara mampu memproduksi barang dan jasa lebih banyak dengan biaya yang lebih murah daripada negara lainnya.

Sebagai contoh, Cina dan Jepang sama-sama memproduksi kopi dan teh. Cina mampu memproduksi kopi secara efisien dan dengan biaya yang murah, tetapi tidak mampu memproduksi teh secara efisien dan murah. Sebaliknya, Jepang mampu dalam memproduksi teh secara efisien dan dengan biaya yang murah, tetapi tidak mampu memproduksi kopi secara efisien dan murah. Dengan demikian, Cina memiliki keunggulan dalam memproduksi kopi dan Jepang memiliki keunggulan dalam memproduksi teh. Perdagangan akan saling menguntungkan jika kedua negara bersedia bertukar kopi dan teh. Dalam teori keunggulan komparatif, suatu negara dapat meningkatkan standar kehidupan dan pendapatannya jika negara tersebut melakukan spesialisasi produksi barang atau jasa yang memiliki produktivitas dan efisiensi tinggi.

Tampak kontras perbedaan pada kedua konsep keuntungan diatas. Adam Smith berpendapat bahwa tidak mungkin semua bangsa menjadi kaya secara serentak, jika mengikuti Merkantilisme, karena ekspor dari salah satu negara adalah impor bagi negara tujuan. Bahkan, semua negara akan bisa untung secara serentak jika mereka mempraktekkan perdagangan bebas dan spesialisasi sesuai dengan keuntungan absolut mereka. Smith juga menyatakan bahwa kesejahteraan para bangsa tergantung pada barang-barang dan jasa-jasa yang tersedia bagi warga negara. 

Mohammad Adityo Poernomo

1701352474

http://hehemahita.wordpress.com/2011/09/12/ekonomi-internasional-absolute-advantage-vs-comparative-advantage/
http://id.wikipedia.org/wiki/Teori_keunggulan_mutlak
http://id.wikipedia.org/wiki/Teori_keunggulan_komparatif

Why comparative advantage is superior to absolute advantage by Andrean Rendra

The standings of Comparative advantage and Absolute advantage has been debated for more than a century since the theory first originated but first before I explain why comparative advantage is more applicable than absolute advantage let me explain what they're both are. absolute advantage refers to the ability of a party to produce more of a good or service than competitors, using the same amount of resources. Here are some examples of how absolute advantage works:

-The United States produces 700 million gallons of wine per year, while Italy produces 4 billion gallons of wine per year. Italy has an absolute advantage because it produces many more gallons of wine (the output) in the same amount of time (the input) as the United States.

-Jane can knit a sweater in 10 hours, while Kate can knit a sweater in 8 hours. Kate has an absolute advantage over Jane, because it takes her fewer hours (the input) to produce a sweater (the output).

An entity can have an absolute advantage in more than one good or service. Absolute advantage also explains why it makes sense for countries, individuals and businesses to trade with one another. Because each has advantages in producing certain products and services, they can both benefit from trade. For example, if Jane can produce a painting in 5 hours while Kate needs 9 hours to produce a comparable painting, Jane has an absolute advantage over Kate in painting. Remember Kate has an absolute advantage over Jane in knitting sweaters. If both Jane and Kate specialize in the products they have an absolute advantage in and buy the products they don't have an absolute advantage in from the other entity, they will both be better off.

Comparative advantage is the ability of a firm or individual to produce goods and/or services at a lower opportunity cost than other firms or individuals. A comparative advantage gives a company the ability to sell goods and services at a lower price than its competitors and realize stronger sales margins.

here is David Ricardo's famous example:

In his example (Figure 1), Portugal could produce both wine and cloth with fewer resources (labor) than England could, but Portugal required **italic{relatively} more resources to produce cloth than wine. Ricardo used simple, deductive logic to show that since wine was harder to produce in England than cloth, both countries would increase both the volume and profits from trade if Portugal focused on wine production while England focused on the production of cloth, and they imported each other's product.

As the events of the past several years have shown lean, inventory-constrained global supply chains have become more vulnerable to highly disruptive supply-side shocks, such as natural disasters, political unrest, government instability, or exchange-rate volatility, in addition to the impacts of the usual demand-side shocks. One example is that of the extreme flooding in Thailand in October 2011, which devastated a key global center of hard disk-drive production. According to some estimates, Thailand produces more than 70 percent of the world's hard drives.

As Ricardo's theory suggests, the impact of a negative event in one source country can have wide-ranging impacts on trade flows across the world. This is especially true today since all advanced economies, as well as most developing ones, are highly integrated with each other via trade and financial markets. This connection can be seen through the highly correlated Purchasing Managers' Indexes (PMI) for manufacturing in the United States, the euro zone, the United Kingdom, China, and Brazil (Figure 2). While emerging markets have recently led the global expansion, they have not been able to decouple from the more advanced economies. This illustrates the fact that economic or political events in one country or region can have significant consequences around the world.

The key point is that companies that keep inventories lean and depend on a limited number of specialized centers of production remain highly vulnerable to supply chain disruptions. They can be negatively and significantly affected by small cracks in the supply chain that iterate throughout the international trade system.

Given that specialization of labor and production will continue to drive global trade integration, as noted by David Ricardo two centuries ago, supply chain managers must recognize that their trade networks will remain vulnerable, exposed to events in distant places where little control can be exerted. And since they cannot evade these global economic forces, supply chain managers should focus on what they can do: building key redundancies and backup plans, and avoiding an over-reliance on what may appear efficient but is in fact very fragile.

In conclusion of my Opinion Comparative advantage is Superior because it takes into accounts all factors of production unlike Absolute advantage which only focuses on labour, especially today in the contemporary world, where outsourcing became common practices, while production such as textile, clothing and other low technology goods have been moved to a less developed world and the more developed world specialize on medical goods, computer chips and so on it became clear that comparative advantage is superior against absolute advantage

Andrean Rendra

1701350714

sources: http://www.investopedia.com/terms/a/absoluteadvantage.asp

http://www.supplychainquarterly.com/columns/20121001-ricardos-comparative-advantage-still-holds-true-today/
http://www.investopedia.com/terms/c/comparativeadvantage.asp

International Trade Nowadays

            Perdagangan internasional ini adalah hasil dari globalisasi, kita dapat memiliki dan menggunakan barang-barang baik itu elektronik, otomotif, pakaian, dan bahkan bahan makanan dengan merk yang sama dengan orang-orang di negara lain. Kita dapat merasakan makanan dari negara lain, dan negara lainpun dapat merasakan rasa dari makanan negara kita. Trade dilakukan oleh semua negara untuk memenuhi kebutuhan-kebutuhan para warga negaranya, dan bahkan sekarang banyak sekali orang asing yang bekerja ataupun menanamkan modalnya di negara kita. Karena masing-masing negara memiliki kebutuhan-kebutuhan yang berbeda, dan terkadang kebutuhan itu sangatlah penting sehingga membuat banyak negara saling membutuhkan satu sama lain.

Menurut saya, perdagangan internasional adalah liberalis, karena liberal sangatlah menjunjung tinggi hak-hak individu, dan perdagangan internasional sangatlah menjaga dan juga menjunjung tinggi hak-hak individu. Sehingga individu dapat dengan aktif meng ekspresikan dirinya dalam bidang ekonomi tanpa campur tangan langsung dari pemerintah, walau pihak individu jugapun harus menghormati dan mengikuti aturan dan undang-undang yang berlaku dalam bertindak.

Memang banyak yang berfikir bahwa perdagangan internasional menciptakan jurang pemisah yang sangat besar antara individu yang memiliki modal atau factory yang biasa disebut borjuis, dengan individu yang bekerja untuk perusahaan atau factory itu yaitu kaum buruh. Tapi tidak bisa dipungkiri bahwa dengan banyaknya perusahaan asing dan pabrik-pabrik dari luar negeri yang ditempatkan di Indonesia, telah membuat banyak orang yang awalnya pengangguran atau hidupnya lebih susah dapat hidup lebih layak atau setidaknya lebih manusiawi. Memang tidak sedikit perusahaan dan pabrik yang memperkejakan buruh layaknya budak, tapi dengan begitu para kaum buruh dapat berusaha lebih giat agar anak-anak mereka mendapatkan pendidikan yang lebih baik atau keterampilan yang lebih bagus, agar anak-anak mereka setidaknya tidak merasakan susahnya hidup orang tua mereka.

Tidak sedikit juga orang-orang Indonesia yang dapat menggunakan perdagangan internasional secara cerdik dan tekun sehingga membuat mereka dapat Go International, baik mereka bekerja diluar negeri ataupun dapat memperluas usaha-usaha mereka sampai ke negara-negara asing. Karena dengan adanya perdagangan internasional, banyak negara-negara yang dengan senang hati menerima orang-orang asing yang ingin bekerja dan meramaikan ekonomi di negara mereka.

Mohammad Adityo Poernomo

1701352474

Opinion Article: Liberalist by Andrean Rendra

During the Era of Discovery, and then later during the age of colonialism the mercantilist Economy dominated the world, it was not until the 19th to 20th century that Liberalist views are embraced and accepted by the people of the world. And it is today in the 21st century the view on the global trade and economy is influenced by liberalism. although recent trends have seen that countries imposed tariff imports and in the worst case scenario banning goods entirely all to protect their domestic industry. but I believe that it is beyond any reasonable doubt that these mercantilist based decisions will only be temporary as the global economy is still recovering from the recent recession.

In my opinion the Liberalist view is the best perspective to explain global trade especially now in this 21st century contemporary era because. first is that the removal of costly and delaying trade barriers, such as tariffs, quotas and conditions, inherently leads to easier and swifter trade of consumer goods, in today world this is very important because it will make the product more affordable to consumer. second is the use of less expensive materials and labor acquired through free trade leads to a lower cost to manufacture goods, this will maximize the profits for the companies and leads to a rise of employment  rate in the country of production. then The theory is that as businesses grow from greatly increased sales and profits, demand will grow for middle-class higher-wage jobs to facilitate the sales increases. fourth free trade benefits poorer, non-industrialized nations through increased purchases of their materials and labor services by more industrialized nations

like all views I will not deny that liberalism have its flaws for example Under a system of completely free trade, capital and labor would be employed wherever conditions are most favorable for production. Other locations would be used as long as it was still possible to produce anywhere under more favorable conditions. To the extent to which, as a result of the development of the means of transportation, improvements in technology, and more thorough exploration of countries newly opened to commerce, it is discovered that there are sites more favorable for production than those currently being used, production shifts to these localities. Capital and labor tend to move from areas where conditions are less favorable for production to those in which they are more favorable. this will impact workers in other countries who are being exploited and harmed. and this will defile environment in other countries, also The impact on workers in countries as India, Indonesia, and China has been even more severe, with innumerable instances of starvation wages, child workers, slave-labor hours and perilous work conditions.

But in all its flaws Liberalism is still more advantageous than Marxist Structuralist which dreams of a Utopia where everybody is equal, but then again how can everybody be equal when in the same theory explains "exploitation" is inevitable in an economic systems, this does not makes sense, control of trade by the state would only lead to economic stagnation and a lack of innovation. Realist Mercantilist view on the other hand although correct that states are selfish and think only for their own benefits and gain is not always right, in liberalism although states would only fend for themselves cooperation is inevitable in today's world as everything is becoming more interconnected and any nation that still hold their mercantilist  belief i doubt they will survive this century, or even this decade

from all of those explanation in my conclusion that Liberalism is the best view for global trade because of its flexibility, respects of human rights, not imaginistic such as structuralist and optimistic unlike mercantilist and it is beyond reasonable doubt that as world develops and technology moves forward thanks to world cooperation and optimism, soon all the disadvantages of Liberalism will be eliminated.

by Andrean Rendra 1701350714

source: http://usliberals.about.com/od/theeconomyjobs/i/FreeTradeAgmts.htm

http://mises.org/liberal/ch3sec7.asp