POLSCI 2J03 Lecture Notes - Lecture 4: Protectionism, General Agreement On Tariffs And Trade, Unequal Exchange

• School: McMaster University
• Department: Political Science
• Course: POLSCI 2J03
• Professor: Robert O' Brien

Document Summary

Trade | one commodity for another: barter is a form of trade, but with the absence of money, (in this course it refers to trade) moving across poliical borders. Oten informal agreements of acceptable import levels": subsidies. No internaional agreement on what a subsidy is i. e. canadian lumber industry: administraive regulaions. Can be challenging to demonstrate that imported goods meet these requirements: trade laws. Laws to target unfair trade (ex/ tax on subsidized items, dumbing laws": highly poliicalized & some make money of of the cases. Protecionism was big in 1980"s: cad gunning for free trade agreement w/ usa to avoid being subjected to these laws. Vid: draw me the economy: what is comparaive advantage: ricardo comparaive advantage (c. a. ) lets countries become more eicient w/o needing to have absolute advantage, idea behind gatt & wto. Factor endowment cause c. a: land, capital, labour makeup determines this. All should paricipate: internaional agreements and organizaions enforce rules ---