Week 7+8 PowerPoint

Question 1

What is Hecksher-Ohlin’s theorem?

Answer 1

A country is best off specialising in producing goods that it is comparatively best at producing and exchanging these goods for those it is comparatively less adept at producing

Question 2

What does GATT stand for?

Answer 2

General Agreement on Tariffs and Trade

Question 3

What does FDI stand for?

Answer 3

Foreign Direct Investment (nt as regulated at the international level)

Question 4

What is Import-substituting Industrialisation?

Answer 4

1. High tariffs and trade barriers 2. Foreign exchange and banking tightly controlled by state 3. state arrows on international markets for domestic industry 4. agricultural products are heavily taxed and not provided with credit 5. substantial business participation, but closely regulated

Question 5

What is Export-oriented industrialisation?

Answer 5

1. Foreign exchange and banking tightly controlled by state 2. The state controls credit 3. Wages are set by the state and state controlled unions 4. little investment in domestic consumer economy, high trade barriers for consumer imports 5. state ownership is minimised

Question 6

What is Washington Consensus?

Answer 6

1. Policies to encourage capital inflows 2. Removing barriers to trade 3. Privatising state-owned industries 4. Liberalising the banking sector 5. Lowering government deficits and spending