SOCIOL 2 Lecture Notes - Lecture 17: Free Trade, International Trade
Document Summary
Index of economic freedom includes e. g. protection of private property. But, increasing international trade in third wave of globalization. On one hand, international trade spans the globe. Graph shows that trade is heavily regionalized, i. e. takes place within regions. Bars are tallest if importer/exporter are from same region. Despite advances in transport & communications, distance still slows trade . Without trade, each country would have to produce each good it needs. Countries vary in ability to produce goods efficiently. : germany can grow oranges, but not very efficiently (wrong climate!) Absence of trade would also restrict the kinds of goods available to consumers. Trade allows countries to specialize in goods they can produce efficiently . And trade for things they don"t. Trade liberalization = opening up markets to make it easier to trade. Important note: this is not the same as liberalism as ir theory. Can allow countries to negotiate to reduce barriers to trade amongst them.
