POLS 2940 Lecture 21: Lecture 21
4 Feb 2019
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Document Summary
In theory, trade should benefit state through access to good and services, increased employment, transfer of technology, lead to peace. Free trade allows countries to take advantage of their comparative advantage (david ricardo), with all nations benefiting as each one specializes in areas in which it excels (adam smith); also important to have capital and labour. Exports: goods and services produced in one country and purchased by another country. Imports: goods and services bought by a country: but conflicts can arise; trade protection; protectionist measures include tariffs; ntb; subsidies. Trade balance: difference between the value of a country"s imports and exports for a given period. Free trade has not worked because we have not tried it (stiglitz); uruguay round, Japan income has increased; bottom 10% is comprised of african countries income has stagnated or fallen) (wade) Inequality can become a major concern: higher poverty, slower economic growth, higher unemployment, migration; rise of oligarchic elite or plutocracy (chrystia freeland)
