Premium Essay

International Economics & Public Policy

In:

Submitted By solome
Words 2872
Pages 12
Contents
Summery 3
Comparative Advantage theory 4
Theory of comparative advantage 4
Example situation of comparative advantage 5
Examples (Brazil, India, China -Russia) 6
Infant Industries 8
Operation of Capitalism 10
Conclusion 13
Recommendations 14
Bibliography 15

Summery
The purpose of this report is to gain an understanding of different theories, ideas behind them and to show examples of how they are implemented. Report outlines the limitations to the idea that countries should be allowed to protect infant industries, like limiting it to a domestic market. Report also looks at Comparative Advantage theories explanation to countries varied fortunes, including the International trade theory and underlining the economic growth, because of the foreign trade. The last question that the report outlines is the economists believes on capitalism in regards to maximising welfare. As a result of the report it was decided to recommend the integration of producers of data categories into international chain.

Comparative Advantage theory
• How does the Comparative Advantage theory explain countries’ varying fortunes? Use examples to explain your answer.

International trade theory
International trade plays an increasingly important role in economic development. Throughout the post-war period be volumes of world trade rapidly increased, and their environments- Annual growth (1.5 times) faster than the global the first volume of production.

As a result, on the one hand, foreign trade has become a powerful factor for economic growth and on the other hand, significantly increased dependence on international trade.
It is evident that international trade is growing because it benefits the participating countries.
-
Economic theory shows that international trade. There is a means by which developing countries
Specialization can raise the

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