POLI 243 Lecture : Poli 243- Chapter 7 Notes.docx

• School: McGill University
• Department: Political Science
• Course: POLI 243
• Professor: Mark Brawley

Document Summary

Adam smith 1776: argument that trade takes place because free trade is mutually beneficial. There are therefore lower cost in terms of inputs consumed and more goods to go around through trade, and overall consumption increases, and everyone benefits. It does not replace comparative advantage in that each country still has different prices for the products domestically. According to the critics of neo-classical economies, the division of labor from the comparative advantage trade structure may have serious political and economic repercussions: modern world system southern baltic region in the 1600s. As trade first began to boom in early capitalism, the regions in. Eastern europe specialized in the production of grain, which they exported to the netherlands, which was more urbanized. In order to have wares to exchange grain for other foods, the. Netherlands specialized in manufacturing a variety of goods, such as textiles, and as time went on, the netherlands became more industrialized and wealthier.