GEOG 216 Lecture Notes - Lecture 9: Absolute Advantage, Safety Valve, Import Substitution Industrialization
4 Oct 2018
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Document Summary
Strife and wars arose from that wealth. Intelectual and political movement that changed the way trade was done john locke. International trade was growing exponentially (4% a year) Trade shares go from 8%-9% of gdp. One in which the region of the 3rd world would start to diverge from the rest. Transportation and communication, innovation: enabling of goods to travel across the ocean and across boundaries, high value stuff used to be the only thing that was transported. The gold standard: trade was not mediated by a currency, until the gold standard. Migration: millions of people moved everywhere such as slaves, created geography of demand and opportunities of trade. Peace: under mercantilism you end up with allot of conflict, after pax britanica establish a peace, where trade is a win-win there is less conflict then when it is win lose. Manufactured goods and import substitutions: once you remove the tariffs then they explode import substitution gathered steam.
