EC 340 Lecture Notes - Lecture 1: Exponential Growth, Trade Barrier, Statistical Significance
Document Summary
Ex: 1. the us imports>exports (industrialize since the 1960s) Other countries are more tied to international trade. Because us are self-efficient. (others may not have enough resources: us exports more important share of total us manufacturing than of. Trade shares and income per capita sizable differences in exports to gdp shares (income group: 24%--low income. Ex: south korea: industrialize protection (rely on few manufacturers) -fall in transportation costs in 19th led to much greater price convergent than has been observed at any time sine wwii. -1945 multinational corporations(mnes) played a small role in world trade. -30% of us exports and 48% us imports are sales from on division of an. -fragmentation of production or offshoring has been a major factor in the growth of trade and fdi. -offshoring occurs when a firm moves part of the production process to a foreign country (subsidiary or subcontracting) -fall in technological barriers to trade (sharp drop in freight costs early on/ict revolution 1990s)
