POLS 3125 Lecture Notes - Lecture 25: Comparative Advantage
20 Dec 2017
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An approach not a theory: limited number of cases (u. s. , australia, new zealand, canada) relatively sparse population prior to european settlement reliance on bulk commodity exports, liberal and socialist theory: deductive, staples: inductive. Fundamental tenets: historical approach: looking at export commodity that economy depended on in each era. U. s: staples orientation: increased/exacerbated over time, greater investment in transportation for new sources of raw materia, dependence exposed the canadian economy to the fluctuations of commodity markets ( boom-bust" cycle, widened canada"s technological backwardness. Staples trap": us: less harsh geography, large prosperous agriculture, allowed for substantial industrial sector development, canada: virtually complete dependence on staples meant little chance for the development of a domestic industrial base. Historical foundation: two main schools: mackintosh approach, w. a. Mackintosh: economics (queen"s: key aspects of approach linear approach to economic development, early stages: reliance on staples due to comparative advantage lack of industrial development because of insufficient populationas population increases, so will industrial development.
