Sir Robert Peel Flashcards
Sir Robert peel contributions
He reformed a new government, introduced income tax, reformed banks and repealed the corn laws.
What did Robert peel do in order to repeal the corn laws.
He ordered grain from the US during the potato famine to help. He then gained enough support in parliament to repeal the corn laws. Free trade boosted the value of industrial workers’ wages and went on to establish britain as an industrial powerhouse.
What is the wealth of nations about?
It describes the advantages of specialisation and how free trade is beneficial
What was the key point from David Ricardo’s book “the principles of political economy”
It is comparative advantage which drives international trade rather than absolute advantage
Comparative advantage
The ability for an economy to produce a good or service at a lower opportunity cost than its trading partners
Absolute advantage
When an economy can produce a good at a lower cost than its trading partners
How can free trade be damaging?
It can destroy infant industries before they have the chance to become more competitive
What is an issue about the growing amount of trade in services?
It reinforces the pressure for free movement of labour and capital since most services require workers on the ground.
Why has there been a nationalistic backlash?
Trade policy is becoming increasingly intrusive with trade negotiations focusing on regulatory convergence giving a sense of loss of control.
How significant is trade creation and trade diversion?
They are swamped by the dynamic effects of economies of scale and benefits of greater consumption
