INTS 1500 Lecture Notes - Lecture 5: Factor Endowment, Toms Shoes, Free Trade
2 Feb 2017
School
Department
Course
Professor
Document Summary
Some say it doesn"t matter what you can produce, you will benefit either. Some say it must be something good to overcome poverty: apples (the fruit) or apples (computers) West is trying to impose sanctions on what you can and cant trade. Thesis: losers: )nt"l trade is politically contentious because there are always winners and (cid:498)emerging markets(cid:499) have used combinations of free trade, state intervention, the theory of comparative advantage is highly problematic. The free trade of goods in which a country has a ca does not always lead to economic growth: countries rarely overcome extreme poverty with free trade or fair tade. and protections to develop. 2 countries can both benefit from trade, even if one has an absolute. Absolute advantage: one country can produce 2 products more efficiently another is less in one country than in another. Free trade causes supply shifts, price shifts, specialization, etc.
