Lecture on trade policies 11-8

Lecture on trade policies 11-8 - Lecture 18: Trade Policies...

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Lecture 18: Trade Policies “Is this a nerd? Can they work with other people?” Financial markets will be bigger than real markets because there are a lot more things going on than just current production Outline: Why do countries trade? Comparative advantage Objections to free trade o National security o Infant industry o Strategic trade o Jobs, wages, and inequity How to negotiate trade liberalization? Comparative Advantage Opportunity costs: foregone benefits o Opp costs means that when you spend time and resources doing one thing you have foregone that time and resources on something else o Foregone opportunity to do something else o With this in mind we should do things that we’re better at so that we can concentrate our time on this thing we’re good at o It’s only for yourself it has nothing to do with others or anything else at this moment o Factories: Where you vertically integrate people who are specializing in one specific area/ skill Specialization
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Lecture on trade policies 11-8 - Lecture 18: Trade Policies...

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