IO week 3

Question 1

Neo-mercantilist state-centric view of Brexit (economical impact)

Answer 1

emphasizes the competition amongst the member states and their financial centers in the EU
would predict that the limitation of access to the Single Market following Brexit would encourage the relocation of financial activities to other EU financial centers, which would therefore seek pro-actively to lure business from London.
any piece of
EU financial regulation that potentially has significant distributive consequences – largely but not entirely due to the make-up of different national
financial systems – will result in a ‘battle’ amongst member states.

Question 2

Neo-mercantilist view again

Answer 2

According to this approach, in the context of Brexit, we would expect a neo-mercantilist ‘battle’ for finance between the UK-based financial industry, notably the City of London, and other EU financial centers, jostling for position to attract business from London, with support from their respective local and national authorities

Question 3

International trade

Answer 3

buying and selling of goods and services across national borders; it is such a ubiquitous part of our
lives we are hardly aware of it

Question 4

Liberal perspective in economics.

Answer 4

These are the free trade ideas (no taxes on imports)

Question 5

Traditional liberal political theory

Answer 5

Emphasizes equality and liberty

Question 6

Comparative advantage

Answer 6

Certainly, it is common sense that if a country is
good at producing something, it will benefit by selling that item abroad. Less intuitive is
the idea that even if country A produces everything less efficiently than country B, it still
benefits through trade.

Question 7

Mercantilism

Answer 7

A “system of economic control”
used by Europe’s colonial powers in the 1700s to exploit their colonies’ markets in order to
enrich “the crown” and strengthen the colonial power’s military force; exports are better than imports

Question 8

Import-substitution-industrialization

Answer 8

This is the more modern variation of mercantilism which argues that self-sufficiency is necessary to help
promote development in poor countries.

Question 9

Creative destruction

Answer 9

When some jobs are destroyed by trade, others may be created.

Question 10

Dumping

Answer 10

When one decides to sell below cost

Question 11

NTB (nontafif barriers)

Answer 11

These include government subsidies (such as export
subsidies), antidumping duties, government procurement rules, and also packaging or
labeling rules that, in effect, discriminate against a foreign producer. They may also include
what are called “technical barriers to trade” and sanitary and phytosanitary measures

Question 12

Single undertaking

Answer 12

There is no agreement until everything is agreed