The politics of trade.doc

1 Page
110 Views
Unlock Document

Department
Political Science
Course
POL 1025
Professor
John Freeman
Semester
Fall

Description
The Politics of Trade Why do countries trade? • Specialization (in your comparative advantage) and trade produces pareto superior outcomes in global consumption ◦ We all specialize in trade ◦ Specializing creates higher consumption ◦ if you specialize in trade, you will consume more than if you live in autarky (liberalist argument) ▪ Autarky: being totally dependent on yourself; not being involved in the world system ◦ If this works for individuals, why doesn't it work for countries? • Pareto Outcomes: at least one person better off and no one worse off ◦ Pareto Frontier: uses all of the resources ◦ Pareto Inferior: a party ending up with less than they started with ◦ Pareto Optimum: using all of the resources to create pareto outcomes ◦ Pareto Superior: Everyone either has the same or has more ◦ Trade doesn't allow Pareto Inferior because of the specialization ▪ ought to engage in free trade Political Science V
More Less

Related notes for POL 1025

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit