MARK 462 Study Guide - Midterm Guide: Comparative Advantage, Factor Endowment, Paul Krugman

• School: Concordia University
• Department: Marketing
• Course: MARK 462
• Professor: Wendy Keller

Document Summary

If an agreement can be reached, a reduction in tariffs and non tariff barriers to the free. Ow of goods and services between the us and the eu could boost economic growth rates and help bring down persistently high unemployment rate, without costing anything in additional government spending. Free trade stimulates economic growth and raises living standards across the board. International trade theories have shaped the economic policy of many nations for the past 60 years. Propagated in the 16th and 17th centuries, mercantilism advocated that countries should simultaneously encourage exports and discourage imports. 1776 adam smith"s theory was the rst to explain why unrestricted free trade is bene cial to a country. Free trade refers to a situation in which a government does not attempt to in uence through quotas or duties what its citizens can buy from another country, or what they can produce and sell to another country.