POL371H1 Lecture : POL371
Document Summary
Table of contents: market interaction and spatial equilibrium. Innovation and institutions: market interaction and spatial equilibrium. Neoclassical economics: economic transactions are led by price signals. Fundamentally different interests of supply/demand: market interaction and spatial equilibrium. Neoclassical economics: market signals automatically create a balance of interests. Equilibriums would be unlikely without market signals: market interaction and spatial equilibrium, market interaction and spatial equilibrium. 2 regions (core/periphery) core region could be an industrial country/region. 2 production factors (labour/capital) that are immobile we can assume if production factors are mobile and different wages and interest rates for capital we can assume there will be movements of labour and capital resulting in eqilibrium. Income disparities should disappear as long as no barriers exist. The software and screens and parts are produced all over, then shipped to china for assembly. Labour intensive assembly process however in total that model is not really applicable because processes don"t occur as simply as this.
