Chapter 6 summary Flashcards
How did the first wave of globalisation happen?
Characterised by ‘conventional’, inter-industry trade that exploited differences in natural endowments
How did the second wave happen?
By a ‘new international trade’ driven by economies of scale and product differentiation
Intraindustry tade
The exchange of broadly similar goods and services
Reason why intraindustry trade is important
With trade in intermediate inputs, the potential for specialisation and trade increases significantly
The efficiencies generated through specialisation and scale economies in production and transpiration have indeed benefited the world
Open registry shipping
The practice of registering ships under flags of convenience to circumvent higher regulatory and manning costs imposed by wealthier nations
What are unexpected consequences of falling transport costs?
At the international level, trade increases with nearby countries, not with those farther away
Within countries, improving transport infrastructure may lead to more concentration of economic activity, not less
Measures of trade facilitation as the main entry points for policing points for policy reform
Port efficiency
Custom regimes
Information technology infrastructure
Port efficiency
An average of the efficiency of port, inland waterway, and air transport facilities
Customs regimes
The hidden import barriers other than published tariffs and quotas, and irregular side payments or bribes connected with import and export permits
Information technology infrastructure
A measure of the speed and the cost of internet access and the contribution of the internet to the reduction of inventory costs
Addressing the negative externalities of transport
Congestion
Emissions
Pollution
Accidents
