IPE midterm Flashcards
(11 cards)
The key arguments of liberalism theory international trade
A theory of international trade advocating for a national economy free of political constraints and no government restrictions on imports or exports.
The key arguments of mercantilism theory of international trade
A theory of international trade that restricts imports to raw materials for production and consumption while encouraging exports of finished products.
Adam Smiths’ absolute trade principles
This is based on specialty in certain products:
* A principle stating that one country can produce specialized goods more efficiently due to more resources and lower costs.
* Win-win trade deal
* France > wine and USA > cloth
David Ricardo’s comparative trade principles
The principle that trade is based on relative production advantages, where the costs of imports are less than local production.
* Countries can save on labor cost on unspecialized product.
The origin of US-China trade relations
Trade relations that were initially impeded by ideological differences and the Korean War, later turning economic in July 1979 with a bilateral trade agreement.
Examples of countries of the global north and south countries
North (higher income and industrialization) - Japan, U.S., Australia, New Zealand, GB, Canada, Italy, and Germany.
South (lower income and development)- Russia, Brazil, El Salvador, Liberia, Philippines
Global north-south relations and each regions international trade products
Countries of the south export primary products to the north.
- This includes unprocessed raw materials such as minerals, metals, fuel
(the largest export item), as well as agricultural and food products, for
example, sugar, coffee, tea, cotton, food (wheat, rice, beef), clothing
- The south imports manufactured (industrial) products from the North.
The concept of special or differential trade agreement
Countries generally associated with lower income and development levels, often receiving special trade agreements.
International military expenditure
(know the two biggest spenders)
The total spending on military by countries, with the US being the largest spender at 50% of global military expenditure. 2nd is China.
Understand the quota trading system
A market-based approach to environmental regulation where a cap is set for emissions and permits to emit are traded.
The history and facts about the World Trade Organization.
An organization that replaced GATT in 1995, based in Geneva, with more than 153 member states and principles including non-discrimination and dispute settlement.
