RSM100Y1 Lecture : Lecture 5
Document Summary
Two weeks from now there will be a mock-exam in class. During the depression it was learned that trade restriction made all countries worse off. Industrialized countries tried to set up institutions to reduce barriers to trade and increase trade and flows of capita. The world trade organization (wto) (formerly the gatt) tries to reduce trade barriers through major negotiating rounds and to mediate trade disputes. Many earlier trade rounds were successful, but there has been little progress in last 10 years. Groups of countries have also reduced trade barriers among themselves by setting up customs unions or. The biggest such movement has been the establishment (in the late 1950s) of the european economic. Community (eec) now referred to as the european union. It has expanded to include most of western and central europe. The european union (eu) not only has free trade among the member countries, but also permits (with some exceptions) the free movement of labour as well.
