PO102 Lecture Notes - Lecture 11: Friedrich List, Mercantilism, Free Trade
Document Summary
Trade: what we sell to other provinces and to the world (exports, what we buy and sell. Goods and servies: wheat, coffee, electronics, tourism, natural resources, health, services etc. Why is trade historically so important: a source or wealth through taxation, because we wants good that we can;t produces for a reusable price at home. Bene ts of trade: range of consumer choice is widened, helps the spread of technology, creates jobs, stimulates economic growth. Negatives of trade: can destroy national industries, can displace workers. 1995 trade stats as proportion of gdp: 20% usa, 32% canada, 47% france, 60% us, 80% sweden, dependance on trade is largely due to the size of their economics. Adam smith: liberal favoured free trade, comparative advantage, each country is superior in the production of something, because go quality, land, resources. Friedrich list: mercantilism/ economic nationalism, free trade favours the strong, free trade weakens national autonomy, free trade can damage the livelihood of citizens.
