International economic theories and policies have a double role: to explain and to regulate. On one side, the international economic theories explain the international economical environment where exchanges are produced, as well as general laws that govern this environment. The international economic policies create a regulatory environment, with rules under which these exchanges are produced.
The mercantilist view on trade evoked two main characteristics. One of them referred to the fact that the ideal for of richness was money or precious metals. The second basic idea revolved around the idea of profit, its origin and role. The first characteristic implied the fact that the balance of payment always had to be positive, so as to increase the country's reserve.
The absolute advantage was defined by Adam Smith and referred to the fact that the producer on the international market that could commercialize products that had lower production costs had an absolute advantage regarding all other producers. In this sense, Adam Smith suggested that it would be more profitable to buy from the international market those goods that were produced by foreign producers at lower costs. In this sense, he laid the basis for the liberal current of thought in trade.
The comparative or relative advantage was the central idea of Ricardo's theory of comparative costs of production and sustained the fact that even if a country did not have an absolute advantage, free trade could still be in its advantage, because of a comparative advantage. This referred to the quantity of work being used and to this quantity of work (and time) being relatively less compared to another quantity necessary to produce the same good in another country.
9. The tariff is a catalogue or a list that comprises the products that are subject to duty, as well as the amount of taxation (quotas)...
Economic Crisis Policies US current economic crisis is considered to be started from real estate sector. The real sector started to decline in 2006 and it accelerated in 2007 and 2008. Housing prices have fallen from the peak from about 25% so far. The decline in prices left homeowners with no option and they were unable to refinance their mortgages and causes default of mortgages. This default of mortgages and loans
International Economics Law International Trade Law WTO Introduction The World Trade Organization, or WTO, is an international body that is located in Geneva, Switzerland and was officially founded in 1995 (The World Trade Organanization, 2012). There stated purpose is to help trade flow as freely as possible under a number of given restrictions. For example, the WTO does not try to get countries to openly trade items that are safety concerns or can
Due to the cases of swine flu in California, the Chinese government issues policies that do not allow the import of any products that have come into contact with California (Workman, 2009). This means that the cargo must be transported to other regions, further increasing operational costs and reducing the efficiency of American organizations exporting to China. Another characteristic of the international trade policies implemented by the Chinese government refers
Interest rates usually increase to curb inflation as to encourage investment to remove currency from the consumer economy. Exchange rates; primarily floating rates and managed floats Exchange rates refer to the difference between currency rates when exchanging the base currency (the currency in possession) for the exchanged currency. For example 1 USD:: 1.60 GBP is an exchange rate denoting 1 USD can be readily exchanged for 1.60 GBP. Floating rates are
"Policy issues attract a substantial attention from both economists and policymakers in the recent years" (Obsteldt). With such attention being focused on the policy issues, it makes more than a little sense, to focus the attention there as well in order to have a higher likelihood of success than without the same attention. In order to focus attention on those policy issues it must be understood what those policy
International Relations Theory and United Nations Peace: International Relations (IR) field normally focuses on the study of how various state systems can be made to work more efficiently to improve the power of law, maintain order, manage interstate affairs peacefully, and lessen prospects of war. The word relation in this field is used to denote the inclusion of more than political affairs to aspects like conflict and peace. International relations field
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now