Pages in this set

Page 1

Preview of page 1
Evaluate the role of International trade and economic integration in promoting development.

Traditionally, development has been measured in terms of income levels (GDP per capita)
as this can show the value of a country's goods and services produced in a year shared
between its population. The GDP per capita can…

Page 2

Preview of page 2
The HDI is a much broader measure of human development and brings to focus a greater
range of factors that ultimately lead to a happier, healthier and wealthier country. The human
development index also allows judgements to be made on the country's development over
time. The HDI also focuses attention…

Page 3

Preview of page 3
The sources of comparative advantage are due to different factor endowments, i.e. The mix
of land labour and capital that country possesses and its quality and quantity. Furthermore
they have different factor intensities which is the balance between the factors of production,
e.g. China which has an abundant supply of…

Page 4

Preview of page 4
The World Bank expects the country a more open to trade grow faster over the long run
compared to countries that remain closed. There are two possible reasons for this. Firstly, as
the global economy grows, there is an increasing demand for the country's exports. This
growth in demand may…

Page 5

Preview of page 5
South Korea, Singapore, Hong Kong and Taiwan are known as the "high performing Asian
economies" (HPAEs) and have seen spectacular rates of economic growth from the 1960s
through to the 1990s. These economies focused on developing a comparative advantage in
goods export to the developing world. Government focused investment on…

Page 6

Preview of page 6
domestic producers suffer through lower demand for their goods and services, and
employment levels are also likely to increase domestically. However, there is likely to be a net
social welfare gain.

Trade diversion refers to a situation where economic integration results in trade switching
from a local supplier to less…

Page 7

Preview of page 7
their products and s ervices are
relatively more expensive (due to a tariff imposed on them).For example, Latin America and
the Caribbean blues about $8.3 billion annually in lost income from agriculture, Asian losers
$6.6 billion in sub Saharan Africa loses $2 billion. The TFPRI is especially critical on the…

Page 8

Preview of page 8
coffee, severely limits the gains from trade for economies whose structure is dominated by
the primary sector. Ethiopian, a major exporter of coffee brewed in many ways be severely
limited in terms of economic growth by the fact that the vast majority of its population work in
agriculturea lowwage industry.…

Page 9

Preview of page 9
In conclusion, international trade and economic integration is a vital part of global
development. While the term development may be difficult to define, organisations such
as the WTO are working hard to promote development through the use of government
legislation, and the removal of tariff and nontariff barriers, which in…


No comments have yet been made

Similar Economics resources:

See all Economics resources »