POLS 1301 Chapter Notes - Chapter 7: Opportunity Cost, World Politics, Comparative Advantage
23 Oct 2017
School
Department
Course
Professor
Document Summary
Puzzle: all economic analysis concludes that trade is beneficial. International political economy: the study of how politics affect and are affected by: trade in goods and services. Financial relations (investments: monetary relations (currency exchanges, development, movement of people. Levels of economic openness during the late 20th century are similar to those of the late 19th century. The prisoner"s dilemma: trade makes winners and losers. Countries have an incentive to limit trade. The world trade organization: made up of 164 countries, has more demanding membership requirements than its predecessor gatt. Settles disputes: benefits of membership usually outweigh the costs, the gatt/wto has increases trade since the 1950s, although growth is slower now. Protectionism the imposition of barriers to restrict imports: types, tariffs, quantitative restriction (quota, non-tariff barriers to trade, subsidies, prohibitions, barriers redistribute income from consumers and foreign producers to domestic producers (prisoner"s dilemma)
