-5 CCBE Globalization

(exports + imports)/GDP

the higher the index, the higher the influence of trade transaction on economic activity

shifting/tilting the graph

ratio of sacrifice in one good in terms of gain in the other

incomes rising -> higher spending on manufactured goods, lower spending on primary products

Instrumental variable approach, used geography as a proxy for trade

strong re-distributive implications of free trade

decreases the need for physically demanding skills and improves relative wage and employment of women

basically correlation does not equal causation

close proximity to production, all costs are high, local monopoly, small markets (limits to division of labour)

lower transportation costs, lower monopolies, appearance of mass production, turn-over times of capital increase (time between investing and receiving profit)

old international division of labour (often artificially) (primary commodities outsources to global south), knowledge and information remain in global north, The divergence (europe and us eclipse the rest of the world)

Increased tariffs, production returned to be mainly for domestic consumption

international flow of goods/ideas/know-how/investment, increases turnover time of capital further, faster product life cycles

made the weakest relative gains

asian poor and middle classes

lower middle class of the rich world (manufacturing workers)

the income gaps between the top and bottom have widened

a country will export goods that are intensive in the factor in which it has an advantage and import those products in which it has a factor endowment

redistributive effects of liberalization get larger and tend to swamp the net gains as the trade barriers in question become smaller

a product that can be bought and soldo

the process by which the number of people who live in precarity increasesp

a situation in which someone's job or career is always in danger of being lost

populist election pols, right-wing turning against immmigation, lest wing turning agains wto/eu (souther europe and latin america)

can't have all 3: hyper globalisation, national sovereignty, democratic policies

authoritarian government, hyper-globalisation, national sovereignty (ex: kinda china)

hyper-globalisation, democratic policies (kinda like eu)

national sovereignty, democratic policies (kinda like brexit)