Chapter 8 International Trade Theory

Chapter 8 International Trade Theory - Chapter 8...

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Chapter 8 International Trade Theory Mercantilism- buying or selling of commodities for the gain of both parties o System where a few tried to take advantage of many Pillage Other Lands History is about city states, not countries City states were run by a king, land owner or dictator, who controlled trade for self-enrichment Goal was to pillage and plunder the lands of others for self gain Import Barriers and Export Subsidies Dictators construct trade to maintain a monopoly Kings used import barriers and export subsidies to create monopoly High import barriers- goods from other countries could not be sold in his lands; forcing his people to purchase from him at his set prices Subsidize exports to sell in other cities and under price competition King’s Wealth, Not Consumer Satisfaction Makes his people pay more for lower quality goods King richer, people poorer Neomercantilism
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This note was uploaded on 04/09/2012 for the course GEB 3375 taught by Professor Sweo during the Spring '08 term at University of Central Florida.

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Chapter 8 International Trade Theory - Chapter 8...

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