ECON3109 Lecture Notes - Lecture 10: Hans Singer, Market Power, Oligopoly
Document Summary
Econ3109 lecture 10: international factors and economic growth. Not all countries gain equally from trade: most international trade takes place in industrial commodities between developed countries. Intra industry trade, lot of trade is between countries who are exporting the same goods to each other. Good and bad industries : good industries > technologically more intensive, > higher paid jobs better skills, more developed technology, all of which spill over to the rest of the economy. Increase exports, increased income = increase in growth growth. Imports are important for the production of other goods, particularly in developing countries: firms starting to manufacture imported goods. Balance of payments constraint: everything produced has an import component, exports are the only component of demand that provide foreign exchange for the other components. If we grow, we can control imports, exports determined by factors outside the economy: world income and price and income elasticity of demand, affects the demand for our exports.
