POL208Y1 Lecture 20: Lecture 2012 01 17
Document Summary
International politics- trying to connect ip to economics. How trade and politics effect one another. Ex of trade: trading gold for salt. The reason is because salt is a necessity and people in the sahara lives inward therefore it is not readily available. Other example of trade is the silk road which carries silk add other things across. Age of exploration: was all motivated by trade. The early settlers moving from one place to another. However trade is not always peaceful, it can cause wars. For example- the opium war between china and england: britain wanted tea which china exports but china didn"t continuously want what. England was giving them: so what the english did was developed opium in their control in india. Britain was furious so they threatened or caused war: the effects of this was that the british took control of hong kong. Transactioncosts: cost of trade (including transportation but also risk etc. )
