Lecture 8

Question 1

Economic liberalism

Answer 1

Free trade increases overall efficiency of the economy and makes everyone better off - states to focus on their comparative advantage and specialize

Question 2

Mercantilism

Answer 2

Disagrees with economic liberalism - predicates on fair competition
Deliberately creates comparative advantages through protectionisms and economic nationalism
Protect own industries, reduce reliance on other countries
May create spiraling race if protectionist measures were met with countervailing trade practices

Question 3

Reciprocity

Answer 3

Tenet of WTO
Everyone lowers their trade barriers (tariff and NTB included)

Question 4

Non discrimination

Answer 4

All imported goods should be treated the same as domestically produced groups and other member nation’s goods

Question 5

Structuralism

Answer 5

Free trade maintains and worsens an imperialistic system of economic exploitation
Creates race to bottom where peripheral economies become overly dependent on trade at the cost to their people