History of trade
Name the integrated transatlantic economic sphere which existed between 1870 and 1914 between what are today OECD countries, which led to convergence.
What is the Atlantic Economy?
This popular physics theory serves as the origin for the name of the gravity theory
What is Newton's law of Gravity?
The theory that considers constraints on production, factor endowments, resource allocation and price convergence to determine the gains of bilateral trade.
What is the Heckschler-Ohlin model?
What are developing countries?
This "over-achieving" region within Europe outperformed the rest of Europe in the late 19th century because of mass migration and capital inflows, schooling, and a "yet unidentified 'new growth theory' force."
What is Scandinavia?
The factors-proportion theory considers these constraints on production.
What is land and labor?
A 2001 paper by Rodriguez and Rodrik challenged major empirical studies from the 1980s and 1990s on their key conclusion in regard to the relationship between trade and growth
What is that openness associated with higher growth rates?
The effect of these at a local level can discourage entrepreneurs to invest in knowledge acquisition. A practical example is local production techniques that can be copied at a local level by firms and can increase competition by driving up factor prices or pushing down product prices.
What are technological externalities?
European countries that, if the gravity model holds, will be the largest trading partners with the US
What is France, United Kingdom and Germany?
Bangladesh produces clothing with low wage rents, whilst Germany produces cars with specialized manufacturing technology.
What is trade between labor-intensive and capital-intensive countries?
A trade strategy followed by many developing countries in the post-war years that did not produce long-run economic growth rates
What is the import-substitution strategy?
As Williamson writes, "Where unskilled wages rise relative to farm rents and skilled wages, inequality falls; where unskilled wages fall relative to farm rents and skilled wages, inequality rises." Evidence in the 19th century points to inequality on the decline in the labor abundant Old World Countries and on the rise where?
What are labor scarce countries in the New World?
Name a major EU trading partner of the USA which challenges or is an anomaly to the Gravity model of International trade
What is Ireland?
A large piece of evidence against the factor-proportions theory suggests that some major capital-intensive countries who have specialized innovative technologies engage in greater labor-intensive trade.
What is the Leontief paradox?
This event led many inward looking countries to shift their growth policy to be outward looking because they had to borrow heavily in order to cope with trade-deficit problem.
What is the Debt Crisis of 1982?