Political Science 2211E Lecture Notes - Free Trade, Absolute Advantage, Classical Liberalism
15 Dec 2013
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Th - the debate over free trade & globalized production. Four main positions in the debate: the liberal view in favour of free trade, liberal, neoliberal, nationalist, keynesian-welfare. Based on specialization, broader economic notion of specialization, individuals specialize in one thing, creates more efficiency. Each worker specializes in a particular job. Cost savings that result from producing on a bigger scale due. Bigger market means that producers can spread out fixed costs over a larger number of units. Free trade means more people and bigger markets. Allows for greater specialization and economies of scale. Would a country still benefit from trade if it had an absolute. Ricardo says yes based on the theory of comparative. David ricardo and comparative advantage advantage in all products? advantage : why trade is advantageous even when a country is superior to its competitors in every single product.
