WorldEc19th - Growth of the World Economy Cameron and Neal...

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Growth of the World Economy Cameron and Neal Ch. 12 Strategic Sectors 0. Agriculture became a smaller sector of the economy, but more efficient and productive 0. Food, raw materials, market, capital, exports 1. Finance and Banking - several forms 1. Financial sector plays a positive, growth inducing role 2. Financial sector neutral or permissive 3. Financial sector inadequate or blocks development 2. Role of the state 4. Legal environment, promotion (taxes etc.), direct productive activities (education to state run business) Growth of Free Trade 3. Adam Smith argued for Free Trade in The Wealth of Nations (1776) 5. Gains of specialization and division of labor among nations and individuals 4. Ricardo’s Principles of Political Economy (1819) 6. Absolute VS Relative costs of production 7. Comparative advantage - foundations of modern international trade theory Britain’s Free Trade and the Corn Laws 0. As early as 1820 petitions to Parliament on free trade 1. 1832 increased franchise - most middle class men favored free trade 2. Corn Laws at center of protectionism 0. Food self-sufficency impossible 1. Anti-Corn Law League 1839 2. 1841 reduction in food stuff tariffs defeated 3. 1845 Irish Potato Famine - Robert Peel introduced repeal of laws against wishes of his own Tory party 4. Navigation Acts and other tariffs mostly gone by 1860 Cobden-Chevalier Treaty 1860 5. Made by Napoleon III of France with England - bypass opposition
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6. Britain to remove all tariffs on French imports except
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This note was uploaded on 02/17/2009 for the course ECON 4514 taught by Professor Shuie during the Spring '08 term at Colorado.

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WorldEc19th - Growth of the World Economy Cameron and Neal...

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