PO102 Lecture Notes - Lecture 1: Gross Domestic Product, Friedrich List
Document Summary
Can destroy naional industries: creates more compeiion for canadian products/services can"t compete. Can displace workers or lead to job light. Can threaten culture and idenity of a country. 1995 trade states proporion of gross domesic product (gdp=wealth) Just over 20% for the us what they actually export. The larger the populaion/economy, the less it is dependent on trade. Trade a source for peace: interdependence creates posiive bonds: the more you are interdependent with another country, the less likely you are to go to war with them. Trade and interdependence make countries dependent and vulnerable. Comparaive/absolute advantage each country is superior in producion of something (lowest cost: because of quality of land, resources, labour force, climate etc , so the country should produce that good to the highest quality they can. Liberals don"t argue that everyone will necessarily gain from free trade, at least not in the short run some gain more than others.
