MARKET 1 Lecture Notes - Lecture 28: Autarky, New Product Development, The17
Document Summary
Fdi has an important link to economic growth since it is intended to create new productive capacity and in many cases this capacity is for exporting. Less clear how portfolio flows might affect growth and exports but it could raise domestic business investment. In many cases, the finance of fdi comes bundled with knowledge of how to produce: perhaps the most important aspect of globalization: the flow of knowledge relating to new technology. Learning new technology from overseas may take considerable effort and investment: one of the difficulties of learning new technology is that of acquiring tacit knowledge. Mediterranean through to china: from the 17th century, britain, along with a few other european countries, increasingly engaged in international trade. In the 1930s, the world trade to gdp ratio declined, which was associated with the great. 9. 3 theories of trade and growth: economists" most basic and oldest theory of international trade is the theory of comparative advantage.
