ACCT 210 Lecture Notes - Lecture 25: Commodity Market, Demand Curve, Blue Funnel Line

• School: College of The Sequoias
• Department: Accounting (ACCT)
• Course: ACCT 210
• Professor: mohamed

Document Summary

First period of globalisation during 19th century (1870-1913 more specifically) Globalisation and colonisation are linked: trade used as economic rationale for colonisation, colonisation lowers some trade barriers. Increase in intensity of world trade and migrations: greater levels of market integration. Huge increase seen in world imports/ exports during 1st globalisation period. Fall in exports/ imports due to great depression and world wars. Level only reached back to pre- depression levels in 1970"s. Distance between p* and p reflects differences in prices in. O"rourke + williamson (2002) simple trade model the two places (t) curve convergence. Therefore, quantity traded not at intersection of demand. Reducing t is an indication of market integration and price. If there"s market integration there will only be one price (where t=0: curves won"t shift, only change will be in price convergence and the size of t. prices eventually converge @ the intersection, trade increases and price decreases.