GS212 Lecture Notes - Lecture 1: Twin Trading, Group Of 77, World Trade Organization
Document Summary
Free trade: an economic perspective which holds that trade is of mutual benefit to countries when there are no barriers or restrictions in the exchange of goods, only participating countries benefit, president-elect trump is anti free trade. Lower opportunity cost: each country will maximize output and have access to a wider market. Everyone wins: in sum, free trade theory is about, eliminating market restrictions, specializing in goods in which countries have comparative advantage and swapping the good in the global market. This enables countries to maximize economic output and foster incomes growth. Agreement: rules that regulate international trade, comparative advantage means that developing countries have to restrict themselves to commodity production, it means these countries will always have to depend on the global north for materials. Development (unctad) was convened in 1964: developing countries formed a club (the group of 77) to press of high prices, the second unctad of 1968 passed a resolution for a.
