IAFF 1005 Lecture Notes - Lecture 9: Holy Roman Empire, Comparative Advantage, Nationstates
Document Summary
Emergence of germany, italy as uni ed nation-states. Rejects liberalism and shared norms of concert. Need to keep france and russia apart. Don"t allow friendship with russia to alienate britain three emperor"s league, 1873 > alliance with austria and russia. 1: alliance with austria, 1879, renew three emperors"s league 1881, alliance with italy, 1882 (foundation of triple alliance, reinsurance treaty, 1885. Cooperation (1815-1854) > con ict (1854-1871) > cooperation (1871-1890) Exible balance of power legitimacy of monarchy, empire. Spread of free trade = economic cooperation. Wealth = what nation can produce and consume with available resources. Nations should trade, just as people do. Specialization and the division of labor > antirealism. Trade as a path to mutual prosperity. Absolute advantage doesn"t matter;comparative advantage is key to trade bene ts. Counties should o what they do best - not relative to other countries, but to other things they do. Heckscher-ohlin: countries will export good made with factors that are abundant.
