CAS IR 292 Lecture Notes - Lecture 1: Containerization, Free Trade
9 Apr 2016
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Document Summary
Globalization >economic integration globalization: technological advancements in: communications- computing/it tech transportation- containerization- universally accessible, low cost, transport is smaller fraction of delivered price of good. Consensus among majority economists: global integration of economies is net bene cial: technological innovations less expensive products greater investments in resource-scarce regions more open trade systems, less regulation. Trade: aggressive policy actions to liberalize trade - liberalization & openness. Trade ows capital ows people ows/migration similarity of prices in separate markets. Trade to gdp ratio: (exports + imports)/gdp problems: doesn"t reveal policies/regulations smaller countries rely more on trade- have higher ratios larger countries consume more- larger markets. Capital and labor mobility: policy is important factor movements are indicators of economic integration as national economies become more interdependent, labor and capital can move more freely across borders. Today: labor is less mobile than in 1900 (more restricted), and capital ows are harder to measure (technology and speed) 2 forms of capital ows: liquid & physical.
