POL S 186 Lecture Notes - Lecture 21: Infant Industry Argument, Most Favoured Nation, Common External Tariff
Document Summary
Specialization-adam smith and ricardo + other economic liberals advocate that trading nations should focus production where they have a comparative advantage. Due to globalization, different states and regions of the world are driven to specialize in particular parts of the specialization process. Not a natural advantage but intentionally fostered by state policies, resulting in tensions over the motives behind them. Outsourcing-when a firm transfers parts (or all) of its production for a good or service to another country. Econ liberals consider this to be a part of the process of globalization of international production and trade. Movements of jobs over seas displace many workers. Foreign direct investment- investments made by a company in production, distribution, or sales facilities in another country. Brazil: but least developed and poorest countries of the world have been unable to attract fdi which undermines their prospects for economic development.
