51-3-234
Mr Krugman's model showed that when trade barriers fall, firms gain access to bigger markets, allowing them to expand production and reap economies of scale. But openness also exposes them to competition from rival foreign firms, paring their margins. Some firms may go out of business. But between the domestic survivors and the foreign entrants, consumers still have more goods to choose from. Thus the gains from trade arise not from specialisation, but from scale economies, fiercer competition and the cornucopia of choice that globalisation provides.
Scale economies also allowed Mr Krugman to give economics for the first time a sense of space. In a 1991 article, he notes that night-time satellite photos of Europe reveal the distinctive contours of economic activity: bright lights cluster around metropolitan centres, shining particularly brightly around the triangle of Brussels, Amsterdam and Dortmund.
Before Mr Krugman, economists found these images difficult to square with the rest of their body of theory. They were accustomed to assuming that firms face constant returns to scale. But if that were true, then every peasant could build a small smelter or assembly line in his backyard. There would be no need for an economy to divide into a farm belt and an industrial belt.

A. 어휘
barrier 障壁(장벽). expand 확대하다, 팽창하다. reap 거두어들이다, 보답을 얻다.
reap economies of scale 규모의 경제가 주는 이익을 얻다. expose 노출시키다.
pare 잘라 내다, 껍질을 벗기다. domestic survivors 경쟁에서 살아남은 국내의 기업들.
entrant 들어오는 사람(기업). fierce 맹렬한. cornucopia 풍요.
a sense of space 공간감각. article 기사, 논설, 논문. reveal 알리다, 폭로하다.
contour 輪廓(윤곽), 외형, 槪略(개략). cluster 밀집하다, 주렁주렁 달리다, 송이, 다발.
square with 일치시키다, 조화시키다. be accustomed to ... 에 익숙하다.
assume 가정하다. smelter 제련소. assembly 조립.

B. 구문
- firms face constant returns to scale.
[기업은 항상 규모에 맞추어야 되는 상황에 직면하다.(기업은 능력에 맞추어서 경영해야 한다)]

51-4-235
Geography lessons
In Mr Krugman's model, by contrast, big factories benefit from lower costs of production. Manufacturing firms might therefore cluster near to a large market, leaving behind a sparsely populated hinterland, in order to make the most of scale economies and minimise the cost of transporting goods to their customers.
Earlier theorists had instead assumed that firms herd together to benefit from some kind of 'spillover'. Perhaps firms pick up tricks of the trade and other know-how from their neighbours. However plausible, these explanations were nonetheless unsatisfying. Because economists could not measure spillovers or delimit their scope ('How far does a technological spillover spill?' Mr Krugman wondered), they could invoke them to explain just about anything.
Mr Krugman's models instead identified a less elusive benefit of proximity. He pointed out that a firm's decision to locate in a district is a gift to other firms in the area, because in attracting new workers it also brings new customers. Unlike a technological spillover, this gift would in principle leave a paper trail, showing up in local firms' sales figures.
In neither contribution did Mr Krugman claim great originality for his ideas or great realism. His achievement was to formalise insights that many people had previously had informally. Ideas that had fluttered in and out of people's grasp for decades, he pinned down like a butterfly on display. Sometimes a good economist, like a good columnist, succeeds not by making a point before everyone else, but by making it better than anyone else.

A. 어휘
cluster 떼를 짓다, 밀집하다. sparsely 드문드문하게.
hinterland 背後地(배후지), 僻地(벽지).
sparsely populated hinterland 인구가 희박한 배후지.
make the most of 최대로 이용하다. minimise 최소로 하다. herd 떼를 짓다.
spillover 넘침, 넘친 것, 넘치다. trick 策略(책략), 재주. trade 거래, 통상.
plausible 그럴싸한, 진실 같은. nonetheless 그럼에도 불구하고. measure 측정하다.
delimit 한계(경계)를 정하다. scope 범위. invoke 간청하다, 축원하다.
identify 확인하다. elusive 포착하기 어려운. proximity 근접. trail 흔적, 자국.
paper trail 문서에 나타나는 흔적(증거). sales figures 판매액.
contribution 寄稿(기고), 공헌. originality 독창성. formalise 형식화하다.
flutter 불규칙하게 움직이다, 퍼덕이다, 펄럭거리다. grasp 이해, 파악.

B. 구문
- they could invoke . . . about anything.
cf. they→spillovers. them→economists
[넘치는 것들(다른 회사의 기술, 정보, 상거래 등)은 경제학자로 하여금 무엇이든지 설명하도록 할 것이다.]
- a less elusive benefit of proximity
[근접(기업들이 떼를 지어 모여 있는 현상)의 보다 명확한 혜택.
-Ideas that had fluttered . . . a butterfly on display.
[수십년 동안 사람들의 이해범위 안팎에서 요동치던(사람들이 알듯 말듯하던) 아이디어들을 전시중인 나비처럼 명확하게 꼭 집어내었다]
- making a point before anyone else.
[다른 누구보다도 먼저 독창적인 아이디어를 발표하는 것]