IB 150 Lecture 13: IB 150 – Lecture 13
31 May 2017
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Document Summary
Agreements among geographically proximate countries to reduce/remove tariff and non-tariff barriers to enable free flows of: Linkages of economies create interdependencies that reduce the potential for violent conflict. Grouping gives countries more political clout worldwide. Unification of monetary, fiscal and social policies. More political power vs. loss of national sovereignty (ex: exchange of national currency for the euro) Trade resulting from a production shifts from country to another within a trade block for reasons of comparative advantage. Low-cost foreign producers within the block replace high-cost domestic producers. Trade privileges shift trade from low-cost producers outside the block to high-cost producers within the block. Low-cost producers outside of a block are replaced by high-cost producers within the block. Increased market size and capacity to satisfy the enlarged market. The economic community of west african states (ecowas) is a regional group of fifteen west african countries.
