Chapter 1●International trade has grown. Why?○Inner industry trade - ¾ of world trade■Countries exchange different goods – explained by Ricardo model○intra- ¼ of world trade■Countries exchange the same goods- example- US exports and imports goods- not explained by Ricardo model●Economics started with intl trade- david hume. 1sttopic is balance of trade●importance of intl trade has tripled over last 40 years. Caluclated in terms of (exports+imports)/ national income.●Make sure to take into account scale of graphs in this class●Doha Agenda- failed. Faulty assumption of this conference is that the US has high interest in intl trade and trying to affect the ruling of the WTO because the WTO can't survive without it.○US % of international trade of national income is only 11%, so this isnt true because US domestic market is true. US relies least on intl trade.●Why trade grew?○Technology○governments promoted trade liberalization (WB, WTO, IMF promote this)
This is the end of the preview.
access the rest of the document.