ECON 314 Lecture 12: ECON 314 Class 12

• School: McGill University
• Department: Economics
• Course: ECON 314
• Professor: Eesha Sen Choudhury

Document Summary

Figure 12. 2 the vent-for-surplus: some factors of production cannot be used, example with canada. Vast majority of land will be unused. Impossible: the point of argument: need for trade, hla myint, he focused on primary products in terms of land. International factor mobility, perfect competition, and uncertainty: increasing returns, imperfect competition, and issues in specialization: structural realities in developing countries, risk and uncertainty inherent in international trading arrangements. Increasing returns and exercise of monopolistic control over world markets: the absence of national governments in trading relations. Industrial policy is crafted by governments: definite role for state, commercial policies instruments (tariffs, quotas) are state constructs. International policies can result in uneven distribution of gains from trade. In south east asia, very important role of the government in the economy (led to very successful development) La stagnated & europe grew from trade theories very diversified effects. Individuals are becoming more mobile so taxes not charged on individuals but rather consumers!