Political Science 2211E Lecture Notes - Lecture 15: Absolute Advantage, Comparative Advantage, Neoliberalism

• School: Western University
• Department: Political Science
• Course: Political Science 2211E
• Professor: Adam Harmes

Document Summary

The liberal view in favour of free trade. Free trade increases economic efficiency and the overall amount of production. Trade, growth and development: trade promotes efficiency and growth, gdp per capita, trade promotes development in emerging markets, evidence supports this. In developing countries, trade promotes the middle class: middle class uses economic power to demand democracy and human rights, constructive engagement. Trade and peace: trade is seen as promoting democracies through the democratic peace theory. Interdependence makes war more economically costly: countries less likely to fight each other. Agrees that trade is good for: economic growth, democracy and peace. Intellectual property goes too far: wtos trade related intellectual property rights go too far, gives monopoly rights to drug companies that go beyond decent profits, much higher drug prices hurt patients. Trade creates (cid:858)polic(cid:455) co(cid:373)petitio(cid:374)(cid:859: firms moving jobs forces countries to compete for business with more pro- business policies, lower environmental regulations, lower corporate taxes, lower labour standards.