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economamics (free trade (identify different forms of protection (tariff…

- - - - tax on imports resulting in higher prices on foreign goods so domestic goods stay competitive
    - - payment from govt to domestic producers to reduce producing costs, increasing their profits so they can decrease price to compete against foreign competitors
    - - a maximum limit on the amount of goods or services allowed to be imported into a country
  - - - sunrise and sunset industries
        
        can take advantage of economies of scale
        
        infant industries will become competitive over time
        
        may get used to little competition and decreasing incentive to innovate and increase efficiency
      - diversification
        
        dont put all eggs in one basket so u are stable if there were changes in world prices
      - anti dumping
        
        when a company exports a product at a lower price than domestic price
        
        unfair competition to drive out domestic competitors
      - national defence
        
        necessary to protect industries that are vital to the economy in case of war
      - increased employment
      - balance of trade
        
        trade deficit would be eliminated by reducing imports
- - - - immigration
      - tourism
      - investment
      - trade
  - - - germany
      - usa
      - china
    - - due to success of WTO, IMF, world bank in promoting liberalisation of world trade
    - - goods are divided into fuels, agriculture & manufactured goods
    - - exchange rate
      - world economic growth
      - domestic economic growth
      - relative inflation rates
      - productivity and cost efficiency
  - - - business efficiency
      - government efficiency
      - infrastructure
      - economic performance
    - - changes in labour productivity
      - relative inflation rates
      - exchange rate
      - changes in a countries wages
    - - weigh costs of a common good to see if a country's dollar is undervalued or not
      - purchasing power parity says same product should sell for the same price in different countries once converted to a common exchange rate
  - - - value of exports as a % of gdp
      - inflows of direct investment has increased 9x
      - phone subscriptions per 100 people
      - internet subscribers per 100 people
      - increase in tourism
    - - liberalisation of markets
      - advancements in tech
      - MNCs
        
        increase profits
    - - benefits
        
        improve economic welfare
        
        increased choice, lower prices more employment higher standard of living
      - negatives
        
        impose costs on poorer economies
        
        increased income inequality
        
        tariffs protect domestic producers from competition
- - - - foreign investment
      - savings investment gap
      - income balance
    - - domestic business cycle
      - world business cycle
      - exchange rate
      - commodity prics
      - TOT