Economics 270 ECON 270
Popular in International economics
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This 2 page Class Notes was uploaded by Hewan Ft on Friday September 2, 2016. The Class Notes belongs to ECON 270 at James Madison University taught by Bob Horn in Fall 2016. Since its upload, it has received 5 views. For similar materials see International economics in Economics at James Madison University.
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Date Created: 09/02/16
Econ 270- International economics – Week 1 Graph 1 Waves of globalization- The increasing importance of a political international economy Between 1870 and 1914- industrialization -Transportation use to be by wind and sale but after 1870, it was now done by steam which made travel faster and more reliable - Telegraph came about - There was also lowering of tariffs After World War 2:- - Great lower of tariffs- with GATT & WTO - now we use closed cargo transport which is basically the big metal containers and is technologically transported on the boat. This is now a lot less labor intensive, which made shipping a lot cheaper. After 1980’s:- - Places like china, Philippines, Thailand and brazil started to have a large population shift from rural to low end manufacturing. - Increase in outsourcing o Production o Service jobs (tech support) Article “Consensus crumbles” - Backlash against globalization o Gains from Free trade are large but extremely spread out through out the economy. (pro) o (con)lower skilled workers have the concentrated loss from freer trade therefore are a lot more vocal about it. - To be apart of a larger trade agreement, countries have to give up some rules or laws their country already has o Free trade agreement: Example is NAFTA o Customs Union:- If USA, Canada and Mexico had the same policy on the rest of the world. o Common market: if NAFTA also added free movement agreement where they allowed capital, products or workers were able to move in and out of the all the counties. o Economic Union:- If the 3 countries economic union had a decision making body all based in one place as the capital. - Trilemma:- You cant be more than 2 at the same time – Mr. Rodriks o Globally integrated o National sovereignty o Democratic - TPP- Trans pacific partnership o economic integration, the goal is to reduce tariffs, foster trade to promote economic growth . Note* the average American is against the TPP because…? The globalization of supply chains:- Meaning the production and distribution of products is more world wide thus leading to an increase in intermediate goods. Intermediate good- screens, batteries and parts that make up the iPhone. Things that help make up the final product. - USA:- their contribution to the iPhone production is the high tech design. America has a competitive advantage in high skilled jobs. There fore the increase in globalization of supply chain hurts parts of the US that is in the production industries or low skilled labor. - This increase in income inequality- there fore both the left and rightist in America are against TPP
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