ECON323 Lecture 1: Econ 323 - intl economics - FULL semester
19 Aug 2015
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Quantity of demand (qd) = a - bp. Alpha = measures relative preference for m good. Pt is usa"s terms of trade (exports: imports) A variable with a dot over = rate of change over time. It is the rate at which purchasing power is equalized: stylized facts, facts that we observe, and dont need to prove they exist, 1. Industrialized countries account for the bulk of world trade: 2. Asia is an increasingly important exporter: 3. Latin america and africa are becoming decreasingly important exporters: not growing quickly enough to maintain position, 4. Because of its economic size, the us is an important trading partner for many countries: 5. The us is canada"s largest trading partner and vice versa: 6. Distance plays a role in trading patterns: gravity trade models, predict trade based on where countries are, but not why, just predicts it.
