ECOP1003 International Economy and Finance 代写

  • 100%原创包过,高质代写&免费提供Turnitin报告--24小时客服QQ&微信:120591129
  • ECOP1003 International Economy and Finance 代写

    International Economy and Finance

    Semester 2 – 2017
    Lecture 2.2 - Winners and losers from trade
    Lecture outline
    Key terms
    Concepts & contexts
    NAFTA: North American Free Trade Agreement

    The Stolper-Samuelson theorem
    Theory of who benefits and loses from free trade
    Ricardo on Corn Laws 
    S-S theorem: Free trade benefits owners of factors that a relatively well endowed, and harms owners that are relatively poorly endowed.
    Allows us to map potential political alliances
    US and Mexican manufacturing workers
    US and Mexican farmers
    Other political contestation over free trade:
    NGOs and civil society
    Questions over democracy

    ECOP1003 International Economy and Finance 代写
    WTO meeting in Seattle 1999
    Investor-state dispute settlement in TPP

    Winners and losers within countries

    Some criticisms of theory of comparative advantage
    Realism of assumptions
    Unequal exchange (two weeks time)
    History of trade (next week)

    Are factor endowments simply given?
    Are markets perfectly competitive?
    Is there full employment?
    Do countries trade according to comparative advantage?
    Leontief in 1953: The US, while being capital rich, had more capital intensive imports than exports.

    Up to 40 per cent of trade is within corporations (intra-firm), which is more along the lines of planning rather than market exchange.

    Large corporations have a considerable degree of monopoly or monopsony power.

    Liberals may counter evidence that doesn’t conform to theory as being a result of institutional and policy failures.
    Do all countries actually gain from trade?

    Ridriguez and Rodrick (1999): “there has been a tendency in academic and policy discussions to greatly overstate the systematic evidence in favour of trade openness.”
    ‘Gains’ beyond increase in efficiency and total output?
    Naturalising nation state as unit of analysis?
    Questions of inequality and distribution
    Competing frameworks for weighing up costs and benefits
    Increased vulnerabilities to shocks from world market
    Social usefulness and ecological sustainability of production 
    Modest gains: E.g. 0.7 per cent increase in GDP by 2030 from TPP (World Bank)
    Immanent Critique of liberal trade theory
    Does the theory of comparative advantage make a convincing case for free trade?
    Does trade increase inequality? Consider inequality both between and within countries.

    Conclusions and next week
    ECOP1003 International Economy and Finance 代写