POLI 243 Chapter Notes -Free Trade, World Trade Organization, Conspicuous Consumption
18 Apr 2013
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Kennedy round 62- 67 marked tariff reductions among gatt members. Lowered tariffs + expansion of trade = opportunity to exploit trade. Developing countries chose to use trade in order to develop their economies (taiwan, south korea, hong kong, singapore) Manufacturing in gdp of s. korea went 14% 1960 t0 30% 1983. Exports important, export earnings grew 3. 9%, exporting sectors lead the country s growth. Immediate post-wwii years s. korea blocked all imports on industrial goods, domestic demand to stimulate domestic production. Also could be taken out of the country entirely. Possible to get comfortable with a steady profit without any increase of production or improved productivity. Some blocked imports could not be fully replaced by domestic counterparts. Isi takes time to develop domestic levels of production are rarely at a high enough productivity to meet import-level demands. While these domestic productions catch up, there is a scarcity, which takes effect on all products that use it as an input bottlenecking.
