PS 280 Study Guide - Final Guide: Most Favoured Nation, European Central Bank, International Monetary Fund
21 Apr 2014
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Commercial liberalism (free trade) vs. neomercantilism (protectionism you protect your own economy) Some people are thinking of getting out of the european union, but there are benefits for being in. Eu strength in trade negotiations to access new markets. When the eu makes deals, johnny walker makes deals (through free trade policies; all about johnny. To sell scotch in the eu must be: distilled in scotland, matured for at least 3 years, cannot be sweetened or flavored. So we (as americans or koreans or whatever cannot compete; johnny walker dominates the market in the eu) Mercosur (4 plus associate members : there are strong pockets in the world where they believe adam smith was right (they deal with free trade) Relative gains: measure my success based on everyone else; this school of thought is very comparative. Tariffs: a tax on an incoming good (you make that good more expensive in your market)
