POLSCI 2J03 Chapter Notes - Chapter 6: Win-Win Game, Mercantilism, Absolute Advantage
20 Jun 2014
School
Department
Course
Professor
Document Summary
One striking feature of the contemporary international trading system arises from the conflict between the continuing political importance of the national border and its declining economic relevance. Trade as an activity takes place domestically when 2 or more individuals exchange goods and services but international trade is when exchange is conducted across national borders. International trade has two important components: the existence of barriers/restrictions to trade and the medium of exchange in which trade is conducted. International trade has political barriers and technical (travel and distance) Political barriers to trade are erected wherever different political authorities decide to prohibit or restrict their citizens" access to foreign goods and services. Protectionism: refers to policies designed to restrict the import of goods and services. Can take many forms but is most commonly in the form of tariffs (taxes imposed on imports of particular goods) tax revenue goes to the government. Protectionism has also taken different forms of non-tariff barriers (ntb)
