Economics and the business world week10
Government and international trade
Arguments for globalisation it allows specialisation, increase output, higher standard of living
On the other hand globalisation can lead to equality and multinational corporations, And undermines the state power, human rights and the environment.
Effects of globalisation
Worldwide events are interconnected
New rules and norms
International trade is buying, selling goods and services from other countries
The purchase of goods and services from abroad that leads to an outflow of currency from the UK this is known as an imports (M)
The sale of goods and services to buyers' from other countries leading an inflow of currency to the UK this is known as export (x)
The ability to produce one product at lower-cost( labour and capital )than the other country and trading the surplus for the other product.
Even if a country has an absolute advances in both projects it can gain by specialising in the product in which its absolute advantage is great
Trade restrictions devices
Tariffs, quotas, exchange rates
protectionism is the economic policy of restraining trade between states, tariff Quotas government regulations
Success fact sheet general agreement on tariffs and trade(GATT)in 1995 WTO PRINCIPLES
CRITICISM OF WTO
Biased Towards some country e.g. EU and USA
Ability to progress
Where member countries reduce or abolish restrictions on trade with each other while maintaining other individual protectionist measures against nonmember.
Where as well as freeing trade Among members, a common external tariff is establish to protect the group from imports from Any non-member
Where the customs union is extended to include the...
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