PHYSICS 102 Lecture Notes - Lecture 9: General Agreement On Tariffs And Trade, Comparative Advantage, Marginal Product
Document Summary
Globalization = the increased interdependence of economies across the world. It includes a range of economic activities, such as trade, migration, technology, and finance. Major aspects of globalization: the share of international trade as a proportion of world gdp. Intraindustry: when rich countries increase their exports and imports of the same categories of products. It can be noticed that generally a rise in exports leads to higher gdp growth. As the (reverse) causality of the first on the second, it has not been assessed yet. International financial flows: 2 main kinds: fdi: the inward flow goes directly toward investment in factories, machines, and businesses. It is intended to create new productive capacity highly linked to growth: portfolio investment: the international inward investment is principally in shares and bonds. Unclear effect on growth, but it could raise domestic business investments: the flow of knowledge relating to new technologies: includes both explicit and tacit knowledge.
