PSCI 152 Lecture Notes - Lecture 8: Free Trade, Planet Money, Citgo
12 Dec 2016
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Document Summary
Planet money podcast about venezuelan economic crisis: similarities with crisis economies in isi: Focus on unprofitable soes (put all eggs in one basket) Exporting commodity and importing other products because it was easier. Isi isn"t the cause of the economic crises in latin america more so the macroeconomic policies: fault of leadership, domestic politics. Populism government trying to subsidize everything to make it. Rent profit from selling at a higher price cheaper for the people: ex: rent in venezuela on dollars and a rent on imports. Rent-seeking behavior bribery to take rents: ex: bribing government official to import and then gain rent. Market place podcast about trade: global trade is declining. Economy isn"t doing well less trade among nations. When countries trade more, they are less likely to go to war: long period of rapid growth in trade. This period appears to be over now: perception. Distribution effects those who lost their jobs are still feeling the pain.
