ADMS 1000 Lecture Notes - Protectionism, Absolute Advantage, Asia-Pacific Economic Cooperation

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Peter Tsasis

Document Summary

Sales/purchasing of goods and services across countries. Free trade will allow each country to specialize on the goods that it can produce more efficiently, and maintain an absolute advantage. The trade theory from the 1500-1800 that claimed a countries. The government encouraged trade surpluses by imposing tariffs. As well as acquiring less developed regions as sources of cheap wealth depends on its holdings of treasure (usually gold). or quotas and banning imported commodities. raw materials. Trade protection: protecting a countries domestic economy through the restrictions of imports. Two problems imports are a threat to the countries economy: low priced foreign goods can compete with goods produced here, a country that imports more than it exports will have more money flowing out. Tariff: a tax placed on goods entering the country to make sure the good is not cheaper than domestically produced goods. Import quota: a limit on the amount of products imported.