PO102 Lecture Notes - Lecture 14: Friedrich List, Mercantilism, Comparative Advantage
Document Summary
The range of consumer choices is widened. Can displace workers or lead to job flight. Can threaten culture and identity of a country. Trade is less important to the us and china due to the size of the economies. Trade is always in the news and is controversial. Trade and interdependence make countries dependent and vulnerable. The wealth of nations - favoured free trade. Comparative advantage: each country is superior in production of something (lowest cost). Because of quality of land, resources, labour force, climate, etc. Free trade means that governments do not intervene. Liberals don"t argue that everyone will necessarily gain from free trade, at least not in the short run. Free trade argument not based on equality or equity of distribution, but on increased efficiency and the maximization of global wealth. They argue free trade favours the strong. Free trade can damage the livelihoods of citizens.
