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Unformatted text preview: 2. Rising Real Incomes this would result in a decline of international trade a. Engels Law as incomes rise, people started to spend less on food and basic necessitates. Later in life a corollary was added: as incomes continue to rise the population started spending more of their income on services-Demand for food and manufactured goods started to decline relatively quickly 3. Economic Instability was increasing greater public demand for protectionism a. This remark was incorrect because there was stability for a few years after the war b. There has actually been a decrease in protectionism within most countries; mainly in the areas of agriculture and textiles -Since WW2 the most rapid growth in trade has been between industrialized countries-Industrialized countries are now trading manufacturing goods for manufacturing goods (ie. car parts between Canada and USA)...
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This note was uploaded on 04/18/2008 for the course ECONOMICS ECN 220 taught by Professor Jolly during the Winter '08 term at Ryerson.
- Winter '08