PO102 Lecture Notes - Lecture 11: Infant Industry Argument, Ngaire Woods, International Political Economy
Document Summary
The interplay of economics and politics in world affairs (ngaire woods, 2008) It has been a source of wealth for countries. Be(cid:272)ause (cid:449)e (cid:449)a(cid:374)t goods (cid:449)e (cid:272)a(cid:374)(cid:859)t get at ho(cid:373)e. The range of consumer choices is widened. Can displace workers or lead to job flight. Can threaten culture and identity of a country. The bigger the economy, the less important trade is to it. Trade a source for peace: interdependence creates positive bonds or trade and interdependence make countries dependent and vulnerable. W(cid:396)ote (cid:862)the (cid:449)ealth of natio(cid:374)s(cid:863) (cid:272)o(cid:373)pa(cid:396)ati(cid:448)e ad(cid:448)a(cid:374)tage. Each country is superior in production of something (lowest cost: because of the quality of land, labour force, climate, etc. So the country should produce that good/service and trade for the rest. Never argued that every country would gain equally, but overall global wealth would increase. Where the governments do not intervene to obstruct trade.
