POS 100 Lecture Notes - Lecture 19: Neomercantilism, Mercantilism, Comparative Advantage
Document Summary
Less imports: not really aiming for trade cooperation, national interest and protectionism, prominent in the 1930s, less visible today with free trade, see neo-mercantilism in terms of subsidies. Import protection: (cid:862)buy a(cid:373)eri(cid:272)a(cid:374)(cid:863, restrictions on foreign ownership of business, opposition to regional trade agreements. Liberalism: dates back to 18th century with works of smith and ricardo, free trade benefits all, work with your comparative advantage, growth of interdependence. Laissez faire economics: leave the government out of business, pursuit of self-interest promotes the common good. Ideas shaped in 20th century by keynes: the need for occasional intervention. Liberalism is the dominant framework since ww2: within bretton woods, neo-liberalism today, privatization and deregulation, a little different from classical liberalism. League of nations had no real mechanisms to handle economics, so seen as important for the post-war world: 1944 meeting at bretton woods, nh established the: International bank for reconstruction and development/world bank (wb: 1947 general agreement on tariffs and trade (gatt)
