INTB 3351 Lecture Outline The Golden Age of 19 th Century Capitalism 1. Free Trade- Repeal of the Corn Laws 1846- Movement against mercantilism in England- Theory of Comparative Advantage Adam Smith 1723-1790 Wealth of nations (1776) David Ricardo (1817)- Principle of “Most Favored Nation” late 19 th and early 20 th century- Role of colonies East India 1808 Opium factory in India during 19 th century World system of settlements 1910 Singer sewing machine company 1851 2. Growth of Foreign Investment 1820- 19 th century- Financial innovation- New forms of equity 3. The Gold Standard System major nation adopted it around 1870’s- designed to facilitate international transactions- reduced financial risks- stimulated foreign investment- economic consequences- excluded nations not on gold- subjected primary commodity exporters to economic shocks- Vicious cycles of boom and bust- burden adjustment on poor countries and labor Terms limited liability- is a concept whereby a person's financial liability
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