International economics- BEQM607- Lecture
The advantages of trade
Export led growth
The economic basis of free trade
Exchange- some countries that are better at producing certain items can
exchange with a countr
Week 2 Seminar questions:
(a) What is the explanation of trade according to the Heckscher-Ohlin theory?
The explanation of trade according to Heckscher Ohlin theory states that a nation
will export the commodity whose production requires intensive use of
Free exchange The Economist article
New techniques show the damage done by subsidies at the heart of global trade
Aug 9th 2014 | From the print edition
THERE is no better symbol of the benefits of globalisation than the container ship. More
(a) Describe what is meant by: (i) preferential trade; (ii) free trade area; (iii)
customs union; (iv) common market; (v) economic union.
(b) Describe what is meant by: (i) trade creation and (ii) trade diversion. Illustrate
how trade creation can arise.