International Political Economy and Globalization

A state needs anothers goods and they trade they got

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Unformatted text preview: le Hand The market functions best with minimal government interference ‘If I make decisions that are good for me then I am benefitting the market’ Adam Smith: Wealth of Nations Benefits of Comparative Advantage Trade can make states better off Ex. A state needs another’s goods and they trade, they got what they need If one is comparatively better at producing one thing than other, but can still trade Ex. Michael Jordon (basket ball vs. mowing lawn) Focus on what you are really, really good at, even if you are good at both things Encourages countries to specialize Mercantilism the world economy is a field of competition among states seeking to maximize their relative power politics and economics are inseparable: but the economy is subservient to the state and its interests basic goal of trade: exploitations have to be concerned...
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This document was uploaded on 02/26/2014 for the course GOVT 006 at Georgetown.

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