GMS 803 Lecture Notes - Lecture 8: International Trade, Commodity Market, Comparative Advantage

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 803
• Professor: Hossein Zolfagharinia

Document Summary

The relationship between transportation and economic development is diicult to formally establish and has been debated for many years. In some circumstances transport investments appear to be a catalyst for economic growth; In others, economic growth puts pressures on existing transport infrastructures and incites additional investments. The impacts of transportation can precede (lead), occur during (concomitantly) or take place after (lag) economic development. o o. The lag, concomitant and lead impacts make it diicult to separate the speciic contributions of transport to development. Each case appears to be speciic to a set of timing circumstances that are diicult to replicate elsewhere. They vary considerably as the spectrum ranges from the positive to the negative. Usually transportation investments promote economic development while in rarer cases they may hinder a region by draining its resources. Transport improvements can impact both commodity and labor markets. o o. Commodity market: improving the irm"s access to raw materials, parts, and their respective customers.