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Unformatted text preview: Comparative Advantage • One of the most important economic concepts • Proposed by David Ricardo • Crook: Utopia and Flatland example CompAdv today • If there are no trade barriers, then comparative advantage drives trade • Free trade makes all countries better off • BUT the int’nat’l trading system has tariffs and trade protection • No such thing as a perfect free market in the real world Other concepts • Asymmetric dependence o Type of dependence in North-South trade o Poor southern countries dependant on north • Balance of trade o Trade surplus (e.g. China) or trade deficit (e.g. US) • Autarky: self-reliance (e.g. North Korea) • Centrally-planned economies, market economy, mixed economy • Dumping Friday: Global trade in textiles • Laborers • Industries • Gov’t’s • Int’nat’l orgs (WTO ILO NGOs and social movements • Consumers/buyers...
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This note was uploaded on 04/30/2008 for the course SIS 105 taught by Professor Chong during the Fall '07 term at American.
- Fall '07