ECO 3111 Chapter Notes - Chapter 1-2: International Trade, Immigration, Capital Market
11 Apr 2018
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Lecture 1 textbook chapters 1 and 2. When countries sell goods and services to each other, the exchange is almost always to their mutual benefit. International trade allows for countries to specialize in a narrower range of goods, giving them greater efficiencies of large scale productions. International migration and international borrowing and lending are also forms of mutually beneficial trade. Allows countries to diversify its wealth and reduce the variability of its income. International trade has strong effects on the distribution of income (within nations). Link trade patterns to an interaction between the relative supplies of national resources such as capital and labor and lone on one side and the relative use of factors in the production of different goods on the other. Conflicts of interest within nations are usually more important in determining trade policy than conflicts of interest between nations.
