Political Science 2231E Lecture Notes - Lecture 8: International Trade, Comparative Advantage, Free Market
27 Dec 2018
School
Department
Course
Professor
Document Summary
International trade = 15% of all economic activity. 60% of trade = na, west europe, japan/pacific. Southern states = slowly but increasingly part of global trade. Transportation greater reach to new markets. Technology new means to link markets. Production produce in multiple linked markets. Labour move to labour-needed markets, better paying markets (least globalized) Commodity: anything sold/traded as a good or service in any market (commodification - marxist) Anything that can be sold or bought are commodified. Differentiated goods: non-necessary & luxury goods or services. Value greater than regular goods and services. Differential goods are why countries profit from trade. Market imperfections: distortions or problems in the market, e. g. corruption. Can have monopolies oligopolies cartels within it. Balance of trade= imports (goods & services intothe state) minusexports (goods & services going outof the state) Fixed amount or % of good/service"s value. Export quota: restriction of out-flow of good/service. Restrictions which can affect import/export subsidies, tax.
