Global Economy

Global Economy

1. Why do countries trade?

   • https://atlas.cid.harvard.edu/
   • Lower prices
   • Greater choice
   • Differences in resource
   • Economies of scale
   • Increased competition
   • More efficient allocation of resources
   • Source of foreign exchange

2. Free Trade and Protectionism

   • https://www.wto.org/
   • Arguments in favour of protectionism
     • Protecting domestic employment
     • Protecting the economy from low-cost labour
     • Protecting an infant/sunrise industry
     • to avoid risk of over-spezialization
     • strategic reasons
     • to prevent dumping
     • to protect product standards
     • to raise government revenue
     • to correct a balance of payment deficit
   • Types of protectionism
     • Tariffs
     • Subsidies
     • Quotas
     • Administrative barriers
     • nationalistic campaigns

3. Economic integration

   • https://europa.eu/european-union/index_en https://www.unescap.org/apta https://ustr.gov/usmca
   • Preferential trading area
   • Free Trade Areas
   • Custom union
   • Common market
   • Economic and monetary union

4. Exchange Rates

   • https://www.xe.com/currencyconverter/
   • floating exchange rate system
   • fixed exchange rate system
   • managed exchange rate system

5. The Balance of Payments

   • https://www.banxico.org.mx/publicaciones-y-prensa/balanza-de-pagos/%7B6A91911B-78FB-CF92-40F6-140ADC5AB292%7D.pdf
   • current account
   • capital account
   • financial account

6. Economic development and sustainable development

   • sustainable development goals
     • www.undp.org
   • ommon characteristics of developing countries
   • diversity in developing countries

7. Measuring economic progress

   • single indicator
   • composite indicator
     • Human Development INdex

8. Barriers to development

   • Poverty Trap/ Poverty Cycle
   • Economic Barriers
   • Political and social Barriers

9. Strategies to promote economic growth and economic development

   • Import Substitution
   • Export Promotion
   • Economic Integration
   • Trade Liberalization
   • Privatization
   • Deregulation
   • improved access to banking system
   • Increasing women´s empowerment
   • Reducing corruption
   • Promoting secure property rights and land tenure rights