Key Terms Flashcards
1
Q
Electoral-economic cycle
A
- Definition: hypothesis about the relationship between the two. The electoral cycle causes economic fluctuations, including improving inflation. The economy affects election outcomes. Economic fluctuations before an election can tip the balance. The electorate rewards incumbents for prosperity and punishes them for recessions. short run spurts of economic prosperity benefit incumbents.
- Significance: politicians, esp incumbents have the power to aim their economic policies specifically at gaining support.
- E.g. Germany, New Zealand, US → unemployment reaches low around election time. Between 1946 and 1976, the best way to beat inflation was to hold a presidential election
Tufte
2
Q
Economic Modernization
A
- Definition: Modernization consists of four factors: income, level of industrialization, education, and urbanization → democracy becomes more likely as these increase
- Significance: An extension of modernization theory, which is coined by Rostow and refers to 1) becoming “well-to-do” and 2) establishing a democracy
- Rostow’s Steps: 1) traditional society 2) pre-conditions for takeoff 3) takeoff (rapid growth) 4) drive to maturity 5) high mass consumption
- Lipset adds democracy as a stage, saying that a country must urbanize, industrialize, improve literacy, grow the media, develop institutions of participation–all at a moderate pace–and then can establish democracy
- Example: East Asian Tigers, e.g. South Korea, Taiwan – successfully democratized only after economic growth reached relatively high levels
Lipset
3
Q
Stages of Modernization
A
- Traditional society
- Pre-conditions for take-off
- Take-off
- Drive to maturity
- High mass consumption
Rostow
4
Q
Rostow’s Stages of Modernization
Traditional society
A
◦ Based on subsistence farming, fishing, forestry, some mining
Stage 1
5
Q
Rostow’s Stages of Modernization
Pre-conditions for take-off
A
◦ Building infrastructure needed for development - transport network, power supplies, communications
Stage 2
6
Q
Rostow’s Stages of Modernization
Take-off
A
◦ Industrial revolution - rapid growth of manufacturing industries, infrastructure, financial investment
Stage 3
7
Q
Rostow’s Stages of Modernization
Drive to maturity
A
◦ Innovations + technologies replace older industries
◦ Economic growth spreads throughout the country
Stage 4
8
Q
Rostow’s Stages of Modernization
High mass consumption
A
◦ Consumer society - people buy goods + services
◦ Welfare systems fully developed
◦ Trade is widespread and expands
Stage 5
9
Q
Dependency Theory
A
-
Definition: Analytical framework explaining global economic inequality by emphasizing historical exploitation + structural imbalances between developed (core) and underdeveloped (periphery) nations.
◦ Based on this logic, developing countries should detach from the world market - Significance: Developing countries cannot replicate path of developed countries → challenges traditional development theories, highlighting the impact of historical processes
- E.g. Nations in sub-Saharan Africa experience economic underdevelopment due to historical legacies of colonialism + their economies are structurally disadvantaged in global trade relationships
Frank
10
Q
Mutilevel international system
A
-
Definition:
◦ Core = economically + technologically developed, high standards of living
◦ Semi-periphery = intermediate industrialization/development
◦ Periphery = less developed, provide raw materials + cheap labor
◦ Goods flow from core to semi-periphery + periphery,
◦ Resources flow from semi-periphery + periphery to core - Significance: Reinforces Frank’s dependency theory, shows how core countries exploit periphery countries – structural inequality in the global system
- E.g. Core = USA, Japan; Semi-periphery = China, Brazil; Periphery = DRC
Frank
11
Q
The Division of Labor
A
- Definition: Specialization and distribution of tasks in a society or manufacturing process
-
Significance: Smith believes the division of labor to be the “greatest improvement in the productive powers of labor” → efficiency gains and increased economic productivity
* E.g. In China, manufacturing processes are often divided among different regions or cities. also manufacturing being split among different countries, such as raw materials being sourced in one place (raw materials for batteries mostly sourced in underdeveloped countries like gabon, drc, but most batteries are actually manufactured in developed countries like US and korea)
Smith
12
Q
Gains from Exchange
A
- Definition: Gains from exchange arise when individuals/nations specialize in producing goods and services in which they have a comparative advantage → then trade with others who have a different comparative advantage
- Significance: Individuals/nations benefit by producing what they are relatively more efficient at
- Trading with other countries = efficient resource allocation
- E.g. Ethiopia: comparative advantage in producing coffee due to climate, higher opportunity cost in producing computers; South Korea: comparative advantage in producing computers due to advanced technology and skilled labor, higher opportunity cost in producing coffee → both benefit from trading
Smith
13
Q
“Invisible hand”
A
- Definition: The force guiding the free market to the most efficient outcome. Based on the logic that individuals, when seeking to maximize their own well-being, inadvertently contribute to the overall economic and social welfare
- Significance: Shows importance of individuals in economic markets, and underscores that individual decisions drive economic change. and is an argument against market intervention.
- E.g. Singapore government has strategically allowed market forces to guide economic development; emphasize free-market policies + minimal government intervention → immense economic growth
Smith
14
Q
Stolper-Samuelson theorem
A
- Definition: Economies should be defined by their dominant factor of production → factor abundance shapes the political incentives of actors
-
Significance:
◦Labor-abundant economies = labor favors freer trade
◦ Capital-abundant economies = labor favors
limiting trade - Political conflict is across classes
- E.g. US (capital-abundant), engages in trade with China (labor-abundant country); Chinese labor would support free trade to increase exports, more wages, job creation; US labor would support limiting trade to protect domestic jobs, wages
◦ Best for long-run
15
Q
Ricardo-Viner model
A
- Definition: Different economic sectors have different interests - labor and capital don’t always act as blocs
-
Significance: Individual interests are driven by sector of the economy on which their income depends (not factor)
◦ Exporting = support free trade because they want open foreign markets (E.g. South Korea)
◦ Import-competing = oppose free trade because they want protection from competing goods (E.g. Brazil - argiculture, textile sectors)
◦ Import-employing = support free trade because they want cheaper inputs (E.g. Germany)
Non-tradeable will support free trade because it would reduce prices on other goods
◦ Political conflict is sectoral, not across classes
◦ Best for short-run
16
Q
Nehru-Gandhi Model
A
- Definition: Associated with “India 1.0” period after 1947 independence. Central planning and inward focus.
- Significance: Meredith: “socialism with low expectations”: bureaucracy and state employment. “Hindu rate of growth” being slower than the rest of the world.
- E.g. License raj + Import substitution industrialization policies
Meredith
17
Q
Rao/Singh Model
A
- Definition: Associated with “India 2.0” period. Capitalize on outsourcing, focus on exporting services, two tiered economic model in which entrepreneurs can prosper
- Significance: Economy takes off in about 1980, rapid reduction in poverty
- E.g.: Exporting IT/software services
Meredith
18
Q
License Raj
A
- Definition: System of strict government control + regulation of Indian economy from 1950s-1990s
- Significance: System intended to protect Indian industry, promote self-reliance and ensure regional equality
- E.g. Businesses required to obtain licences from government in order to operate - often difficult to obtain
Meredith
19
Q
Institutions Hypothesis
A
- Definition: Some societies have good institutions that encourage investment in technology → thereby achieve economic prosperity
- Significance: Highlights the importance of institutions towards achieving maximum welfare.
- E.g. South Korea = inclusive institutions → fostering economic development, industrialization, and democratization; North Korea = extractive institutions → concentrating power in a centralized regime, economic stagnation and isolation
Acemoglu
20
Q
Geography Hypothesis
A
- Definition: Geography, climate, and ecology of a society shape the technology + incentives of inhabitants
- Significance: Emphasizes forces of nature as a primary factor of poverty, which can then allow policies to be formed to combat geological differences.
- E.g. Caribbean colonized by Global North → industries exploited due to rich soil + suitable agricultural conditions; DRC= resource curse
Acemoglu
21
Q
Offshoring
A
-
Definition: Movement of jobs (not workers) from rich (high-wage) to poor countries (low-wage) – result of gains from trade principle
◦ Solutions = transforming educational systems to fit future jobs, not building protectionist barriers against offshoring - Significance: Capitalizes on global labor cost differentials, reducing operational expenses
- E.g. Textile manufacturing moving from UK to China; call centers moving from US to India
Blinder
22
Q
Privatization
A
- Definition: Transfer of government-owned enterprises to private hands → thereby giving greater scope to the invisible hand
- Significance: Friedman believes that total + rapid reduction of government role in economy will best spur economic performance
- E.g. USPS had monopoly on first-class mail in the US, but recently UPS has taken over
Friedman
23
Q
Corporatism (corporatist state)
A
- Definition: Political model comparable to a body → core made up of government, limbs made up of political interest groups; assumes that it is possible to segment pop. into political interest groups, for ex working class, bureaucrats, business class, peasant class, etc.
- Significance: Promotes cooperation between the state and organized interest groups for decision-making, aiming for consensus and stability
- Example: Mussolini’s fascist regime Italy
Yashar
24
Q
Liberal welfare state
A
- Definition: A welfare-state variation in which means-tested assistance (e.g. welfare eligibility based on family income), modest universal transfers, or modest social-insurance plans predominate.
- Significance: Goal of this system = alleviate poverty + establish free market; There is a strong emphasis on the market as primary mechanism for providing welfare (supports privatization of healthcare, education, pension)
- E.g. US, Canada, Australia
Esping-Andersen
25
Q
Corporatist welfare state
A
- Definition: Welfare-state predominated by the preservation of status differentials, so rights are attached to class and status. Emphasizes employment-related benefits
- Significance: Involves close collaboration between governments, employers, trade unions → seeks to maintain social cohesion + conservative values
- E.g. Germany = social, health insurance + pension tied to employment status (reflections occuppational emphasis of corporatist model); Austria; benefits may exclude non-working wives and encourage motherhood
Esping-Andersen
26
Q
Social-democratic welfare state
A
- Definition: Welfare-state in which there is one shared pool of benefits and every citizen has universal rights, promoting equality of the highest standard. Goal = income maintenance and equality among citizens
- Significance: understanding this variation provides insights into successfully balancing economic growth with social welfare, fostering inclusive societies, and promoting political stability.
- E.g. Sweden = market economy + robust social welfare policies, progressive taxation, and a strong emphasis on human development → resulting in relatively low income inequality, high-quality public services, and a high standard of living
Esping Andersen
27
Q
Cohesive-capitalist state
A
- Definition: a type of state which is characterized by cohesive, effectively-governed politics—centralized and purposive authority structures combined with a close alliance with producer or capitalist groups.
- Significance: Aligns with Kohli’s argument that economic development is the consequence of effective states → cohesive-capitalist states FOSTER growth
- Example: South Korea under Park Chung Hee, who created an efficacious but brutal state that intervened extensively in the economy.
Kohli
28
Q
Neopatrimonial state
A
- Definition: a type of state which is characterized by weakly centralized and barely legitimate authority structures and poor bureaucracy. Public officeholders often treat public resources as their “personal patrimony”.
- Significance: The failure of neopatrimonial states supports Kohli’s theory that economic stagnation occurs when states are ineffective, since state-led development under neopatrimonial states has often resulted in disaster →neopatrimonial states actively THWART growth
- Example: DRC: unsuccessful government development of diamond industry → major economic and social turmoil due to in-groups fighting over resources
Kohli
29
Q
Fragmented-multiclass states
A
- Definition: modern type of state which commands authority, and the public arena within them holds leaders accountable for poor public policies and performance. However, authority within these states tends to be more fragmented and rests on a broader class alliance.
- Significance: Supports Kohli’s theory that economic development is the consequence of effective states, and economic stagnation occurs when states are ineffective → fragmented-multiclass states ineffective at fostering growth
- Example: India, since its independence in 1947, has been ethnically fragmented, which poses policy difficulties.
Kohli
30
Q
Coordinated Market Economies (CMEs)
A
-
Definition: Economic systems characterized by strategic interaction between firms; tripartite coordination between:
1. firms
2. workers
3. government
◦ Workers in CMEs: Specific skills (co-specific assets), industry-level collective bargaining agreements, government financed job training programs, long apprenticeships
◦ Capital in CMEs: Patient capital = sustained returns, long investment horizon; consensus decisions; Industrial or government-coordinated collaboration on technology transfer, product development, etc.
-
Significance: Encourages long-term relationships, skills development, and stability; CMEs are self-reinforcing
◦ Employee in coop firm → specific skills → patient capital → coop across firms → wage moderation → - E.g. Germany – cooperation between businesses, labor unions, and government for economic governance**
Hall & Soskice
31
Q
Workers in CMEs
A
- Specific skills (co-specific assets)
- Industry-level collective bargaining agreements,
- Government financed job training programs
- Long apprenticeships
Hall & Soskice
32
Q
Capital in CMEs
A
- Patient capital = sustained returns, long investment horizon
- Consensus decisions
- Industrial or government-coordinated collaboration on technology transfer, product development, etc.
Hall & Soskice
33
Q
Liberal Market Economies (LMEs)
A
- Definition: Economic systems characterized by hierarchical firms, markets for competition and exchange, and formal contracts
◦ Workers in LMEs: General skills (“switchable assets”), fluid labor markets with liberal welfare, so workers are free agents and move around between firms
◦ Capital in LMEs: Venture capital, price signals in stock markets, “Impatient capital” = quick returns, short investment horizon
-
Significance: Emphasizes flexibility, individualism, and efficiency in resource allocation; LMEs are self-reinforcing
◦ Deregulated labor markets → general skills → venture capital → strong competition → price signals → low-cost hiring/firing → cycle continues - E.g.: US and UK - strong emphasis on free-market principles and minimal state intervention.
Hall & Soskice
34
Q
Capital in LMEs
A
- “Impatient capital” = quick returns, short investment horizon
- Venture capital
- Price signals in stock markets
Hall & Soskice
35
Q
Workers in LMEs
A
- General skills (“switchable assets”)
- Fluid labor markets with liberal welfare
- Workers are free agents and move around between firms
Hall & Soskice
36
Q
Participation income / Negative Income Tax
A
- Definition: similar to a basic income, a scheme in which government benefits go only to participants in society—broadly defined to include not just employment but self-employment, education, and training.
- Significance: Participation income is an innovative approach to curbing rising inequality, and governments should use the resources they have to help alleviate these inequalities.
- Example: Switzerland
Atkinson
37
Q
Bolsa Familia
A
-
Definition: Brazilian social welfare program that started in 2003 - provides conditional cash transfers to low-income families, aiming to alleviate poverty and promote social inclusion by requiring recipients to fulfill specific health and education requirements. The program has helped reduce the country’s overall income gap and alleviate poverty.
Significance: Example of an innovative, democratic solution to poverty and inequality which shows the effectiveness of conditional cash transfers and targeted social policies in promoting development - E.g. Cash transfers if families send their children to school regularly, get vaccinated
Tepperman
38
Q
Prospera Program
A
- Definition: A cash transfer program in Mexico which allocates money to mothers if they meet three conditions: 1) they send their children to school, 2) their children meet nutritional standards, and 3) children receive regular health check-ups.
- Significance: The Prospera program is one of the most influential universal income programs, and it allows children in the program to have better nutrition rates and health outcomes, graduate, and attend college.
- Example: Mexico
McCarthy
39
Q
Conditional cash transfer
A
- Definition: Government-given stipends given to poor households that are contingent on a specific set of standards, such as a condition that children go to school or visit a doctor regularly.
- Significance: CCT programs are an innovative method of combating poverty and help future generations.
- Example: Bolsa Familia in Brazil, which is based on the conditions of school attendance and vaccination
40
Q
Unconditional cash transfer
A
- Definition: Government-provided stipends that are given without specific conditions.
- Significance: Virtues exist to unconditional cash programs, which work when lack of money is the main problem in society. UCTs allow quick action against poverty.
- E.g. Programs such as “Give Directly” in Kenya helps families living in extreme poverty by making unconditional cash transfers to them via mobile phone.
41
Q
Basic Income movement
A
- Definition: A social welfare movement that is characterized by all citizens of a given population regularly receiving a minimum income in the form of an unconditional transfer payment.
- Significance: This movement would theoretically empower people to work the way they want to, rather than the way they have to just to get by.
- E.g. Basic Income Earth Network
Lowery
42
Q
Civil Society
A
- Definition: A complex welter of intermediate institutions (religious groups, voluntary associations) that operate independently of the state → forms of social + civic engagement
- Significance: Supports Fukuyama’s argument that high levels of trust (strong civil society = indicator of high levels of trust) in society can foster economic growth
- E.g. Apartheid in South Africa: NGOs, CBOs and advocacy organizations played a crucial role in the struggle against apartheid
Fukuyama
43
Q
Social capital
A
- Definition: The ability of people to work together for common purposes in groups and organizations.
- Significance: A large social problem comes from a deficit of social capital; out of these shared community values comes trust, which has a large and measurable economic value.
- E.g. Kerala, India = strong tradition of social networks, community engagement, and mutual support systems. This leads to a high level of social capital, fostering cooperation in various aspects of life, from community development initiatives to responses during crises.
Fukuyama
44
Q
“Consolidated” democracies
A
-
Definition: Political regime in which democracy as a complex set of institutions, rules, and patterned incentives has become “only game in town.” 3 necessary conditions:
1. Behaviorally, when no significant political group attempts to overthrow or secede from the state so state does not need to worry about democratic breakdown.
2. Attitudinally, when overwhelming majority of people believe political change should come from democratic procedures.
3. Constitutionally, when government and non government are both subject to and habituated to democratic process - Significance: Consolidated democracies provide a stable and enduring political framework, and the quality of democracies can contribute positively or negatively to the quality of society.
- E.g. Venezuela under Nicolas Maduro faced criticisms for democratic backsliding, election irregularities, and restrictions on political opposition, which do not constitute it a “consolidated democracy”.
Linz & Stepan
45
Q
Relative deprivation
A
- Definition: Perceived discrepancy between men’s value expectations (goods/conditions of life to which people believe they are rightfully entitled) and their value capabilities (goods/conditions they think they are capable of attaining or maintaining)
- Significance: Relative deprivation leads to discontent, which is the first step towards political violence before the politicization of discontent and its actualization in violent action against political objects and actors.
- E.g. Sunni-Shiite conflict in Iraq, in which there was a perceived discrepancy between the Sunni population’s value expectations and value capabilities after the fall of Saddam Hussein. In this example. Sunnis felt entitled to a certain level of political power and influence but believed they were losing it, ultimately manifesting in political violence.
Gurr
46
Q
Revolution
A
- Definition: Mass-supported seizure of political power that aims to transform the social order in a society.
- Significance: Supports rational choice theory in order to describe how revolution occurs; when a critical mass of individuals simultaneously realizes that their private preferences are widely shared, and they observe others expressing their true preferences, it creates a rapid and unexpected shift in public opinion, leading to a revolutionary movement.
- Example: East Europe at the fall of the Soviet Union: a result of long-standing discontent, and the realization that other people also experienced discontent with the Soviet government.
Kuran
47
Q
Ideological opportunity
A
- Definition: If there is a strong part of the traditional left in a given area, this could decrease the likelihood of successful organization around ethnicity; but if the traditional left is weak, it could open up space that party activists could occupy.
- Significance: Could help us understand why efforts to construct ethnic political parties are successful in some places and unsuccessful in others.
- E.g.: In Bolivia, party formation has been more successful than in Argentina or Peru because a relatively weaker presence of the traditional left may have created an ideological opportunity for activists to organize around ethnicity.
Van Cott
48
Q
Essentialism/Primordialism
A
- Definition: school of thought that assumes that ethnic identities are deeply-rooted effective ties that shape primary loyalties and affinities.
- Significance: Primordialism speaks to the existence of deeply-rooted identities, but provides little insight into how they translate into political organization and action in some cases.
- E.g. in the former Soviet Union, the countries that made up the USSR retained their senses of national identity despite the breakdown of these political institutions.
Yashar
49
Q
Instrumentalism
A
- Definition: School of thought that emphasized how different identities are activated as a rational decision, deciding which groups/mobilizations to join.
- Significance: Provides a rational choice model for how ethnic groups mobilize; similar to Laitin’s argument, people identify with an identity and choose to activate it after the tipping point.
- E.g. Women’s march, when people choose to activate that aspect of their identity in order to mobilize.
Yashar
50
Q
Poststructuralism
A
- Definition: School of thought that assumes that identities are not given or ordered but are socially constructed and evolving, identified based on the structures we find ourselves in.
- Significance: Supports the idea that identity is framed by essential factors but also interacts with society and structures.
- E.g. In Nigeria, people don’t identify as “black” but those same people come to the US and identify as such based on existing societal structures.
Yashar
51
Q
Cross-cutting identity
A
- Definition: a critical feature which does not closely correlate with class or other forms of “social stratification”. Members of cross-cutting groups belong to all parties.
- Significance: Possessing a cross-cutting identity potentially reduces the likelihood of cohesive collective action.
- E.g. Gender
Htun
52
Q
Coinciding identity
A
- Definition: Individuals share multiple social identities and the political interests associated with these identities align.
- Significance: Coinciding identities reinforce collective action and increase the likelihood of successful political mobilization.
- E.g. Ethnicity
Htun
53
Q
Quota
A
- Definition: a policy that requires a minimum number of candidates fielded by political parties for general election have certain demographic characteristics.
- Significance: a method of making space within existing parties and suiting groups whose boundaries crosscut partisan divisions.
- E.g. Argentine Ley de Cupos requires that women comprise a minimum of 30 percent of political party lists
Htun
54
Q
Reservation
A
- Definition: a policy which sets aside a fixed percentage of legislative seats for members of a certain group
- Significance: Reservations create incentives for the formation of group-specific parties and permits them direct legislative representation, and suit groups whose boundaries coincide with political cleavages
- E.g. Maoris in New Zealand uses election by voters registered on separate rolls
Htun
55
Q
Women’s Agency
A
- Definition: The tendency to act as an active agent of change, dynamically promoting social transformations that can alter the lives of both women and men.
- Significance: The agency of women is important for women’s wellbeing and leads to improvements in 1) child survival and 2) reduction of fertility rates
- E.g. Kerala, India: Women have actively engaged in campaigns advocating for their rights, education, and healthcare, demonstrating agency by participating in political processes and social movements to enhance their well-being and contribute to societal development.
Sen
56
Q
Universal homogenous state
A
- Definition: The “end of history” as characterized by Fukuyama is a society organized through free market economics and liberal political institutions, and the details of a shared model will simply be tinkered with.
- Significance: Fukuyama believes that global major ideological divisions drove politics, and these divisions are no longer significant enough to achieve real historical change.
- E.g.: In the twentieth century, ideological clashes drove social change.
Fukuyama
57
Q
Cohesive, capitalist states
A
- Definition: a type of state which is characterized by cohesive, effectively-governed politics—centralized and purposive authority structures combined with a close alliance with producer or capitalist groups.
- Significance: Aligns with Kohli’s argument that economic development is the consequence of effective states.
- Example: South Korea under Park Chung Hee, who created an efficacious but brutal state that intervened extensively in the economy.
Kohli
58
Q
State-centered equilibria
A
- Import-substitution industrialization
- Command economy distortions
59
Q
Import-substitution industrialization
A
Definition: Economic policy promoting domestic industries by substituting imports with domestically produced goods.
Significance: Aims to reduce dependence on foreign products, encourage industrial growth, and diversify the economy.
E.g. Many Latin American countries adopted ISI in the mid-20th century, using protectionist measures to nurture domestic industries
Meredith
60
Q
Special economic zones
A
- Definition: Designated geographic areas with favorable economic policies to attract foreign investment and promote economic development.
- Significance: Played a crucial role in China’s economic reforms, fostering foreign direct investment, export-oriented industries, and technological advancements.
- E.g. Shenzhen, established in 1980, was one of the first SEZs in China, becoming a global manufacturing and technology hub.
61
Q
Local poverty line
A
- Definition: basic basket of goods that a family would need to survive in a particular area - food, clothing, housing healthcare
-
Significance:
◦ Advantages as a measure of poverty: correspond well to actual living conditions, levels of development, capture varied diets, varied economic needs, match up well with basic needs.
◦ Disadvantages: not easily comparable cross nationally, governments may have incentive to control in misleading way, surveys can be costly, many levels is confusing - E.g. China sets a very low standard for poverty and says that they have very low poverty
62
Q
Global poverty line
A
Definition: world bank standardization: $1.90/day as “extreme poverty” or “indigence,” $3.10/day as “moderate poverty.” Today roughly 700 million live in extreme poverty by this definition.
Significance: Advantages as a measure of poverty: easy to compare cross nationally, easy to access. Disadvantages: not sensitive to deifferent levels of development, artificial measure, maybe different from local perception
63
Q
GINI coefficient
A
- Definition: Measure of income or wealth inequality, ranging from 0 (perfect equality) to 1 (perfect inequality).
- Significance: Widely used to assess and compare income distribution, offering insights into societal inequality and economic trends.
- Example: US Gini coefficient: 0.39, South Africa: 0.63 (worst in the world)
64
Q
Capital-Abundant economies
A
- Lots of capital
- Scarce labor
- Under Stolper-Samuelson model, labor will favor restricting trade
65
Q
Labor-Abundant economies
A
- Lots of labor
- Scarce capital
- Under Stolper-Samuelson model, labor will favor freer trade
- Less benefit from restricting trade
