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Essay / Research Paper Abstract
This 22-page paper focuses on several international economic issues such as commodities price stablization, cartels, OPEC, China's growth and the WTO and East Asia's "economic miracle." Bibliography lists 9 sources.
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22 pages (~225 words per page)
File: D0_MTintque.rtf
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of specialization and comparative advantage, meaning countries are better off economically if they specialize in tasks in which they are most efficient, then sell those products/services to other countries that
dont have those specialties (Gomme, 2002). What ends up happening, at least according to theory, is that countries help their trading partners by lowering the price of goods -- and
even providing a greater variety of goods (Gomme, 2002). If one were to follow this reasoning to its conclusion, one could safely assume that free trade and comparative advantage would
actually end up benefiting lesser-developed countries. For example, if Canada grows lumber (because of its forests) then it should leave banana growing
to Honduras (because the climate is more conducive to growing bananas) (Gomme, 2002). As a result, lumber and bananas would be less costly for everyone (Gomme, 2002).
This is known as the Hecksher-Ohlin model of international trade and is based on certain facts, namely that countries differ from one another in terms
of labor, capital and natural resources and that goods be produced using different proportions of these resources. The country that has the most goods would benefit from focusing its efforts
on a specific product, rather than trying to produce many products for which it has no resources. This would end up being a more cost-effective model for both industrialized and
lesser-developed countries. Such a model tends to work well between two countries that produce only a few goods (Gomme, 2002). In addition,
this model focuses on inter-industry trade -- in other words were a country exports goods produced by one industry in exchange for goods produced by another industry from another country
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