[ECON 2610] - Midterm Exam Guide - Ultimate 40 pages long Study Guide!
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A vs. eme different in process of trade. Upstream countries: don"t rely on imports to produce exports. As price goes up for upstream producers, cost of assembly goes up for downstream countries. High technology electronics - the larger the number of countries involved in supply chain, the incomes rise: because we"re adding value. Increased interconnectedness: cheaper to produce components and assemble where cost is low, gdp, income, saving, spending, etc. all connected. Both ship out to china to be assembled and exported. Value added is much more in ger and us upstream. China not as much value added eme (downstream) Problems with neme"s that aren"t in other countries. Europe notably england mid (cid:883)3(cid:882)(cid:882)"s to late (cid:883)7(cid:882)(cid:882)"s: bullionists mid (cid:883)3(cid:882)(cid:882)"s to mid (cid:883)5(cid:882)(cid:882)"s, central gov"t power. Preclassical trade models: grains, coffee, cocoa, sugar, cotton, cultural/ethnic conflict, not a huge labor force what we have in our pockets. The gov"t should not be involved: invisible hand.