ECON 219 Lecture 4: Notes

• School: McGill University
• Department: Economics
• Course: ECON 219
• Professor: Sandra Saghir

Document Summary

Majority european countries lie on the 45 degree line(with respect to their share with usa)- (refers to fig 2. 2 of presentation) Distance, size(example-netherlands and belgium: both netherlands and belgium have smaller share in european gdp but they did trade largely with usa because, of their geographical locations, netherlands harbors the rhine -the longest river of western europe+ Rotterdam in netherlands is the most important port in europe and antwerp in. Belgium ranks second: large ports provided transport of merchandise. Impediments to trade:distance, barriers and borders: distance- one denominator of equation. Larger distance between countries= lesser trade. (expensive to transport goods: cultural affinity- example- usa and ireland. Close cultural ties: lesser tension, lots of relationships between countries, important factor in stimulating trade, geography- geographic location, ocean harbors-example netherland and belgium. Mountains=make it harder to do trade and transport goods: multinational corporations- any firms in general would trade with countries that have their branches located in a certain country.