Neoclassical and classical trade theory, International Economics

Assignment Help:

Q. Neoclassical and Classical trade theory makes the case that free trade can bring a country to an optimum and economically efficient use of its resources; and therefore is an optimal trade-policy, if the purpose is maximizing long term economic growth. There are those who argue that the experience of the Asian Miracle countries, such as Taiwan, South Korea and Singapore prove this argument in the real world. Explain. There are others who argue that the experience of these countries can't be used to verify or support the argument above. Explain.

Answer: Both arguments may perhaps indeed be made. These countries performed in fact are likely to promote exports in a consistent set of policies. Though they tended to do this via conscious National industrial-policy example South Korea using "the Japanese system" and thus with the possible exception of Hong Kong don't provide a good test-tube for the long run effects of a free-trade stance.


Related Discussions:- Neoclassical and classical trade theory

Forward hedging, Assume that Deborah Electronics expects a delivery of Fuji...

Assume that Deborah Electronics expects a delivery of Fujitsu laptops in a month from a Japanese supplier. Each laptop sells at $1000 in a retail market whereas the import cost is

Opportunity cost, Using examples, from the government, illustrate the signi...

Using examples, from the government, illustrate the significant opportunity cost.

Transportation economic, Hepburn’s Speed Model, the coefficients of vehicle...

Hepburn’s Speed Model, the coefficients of vehicles are indicated for C and D. As the chief of operations in your organization, you are responsible for presenting the yearly budget

INTERNATIONAL TREAD, WHATE IS THE PROPERTY OF OFFER CURVE OF A COUNTRY

WHATE IS THE PROPERTY OF OFFER CURVE OF A COUNTRY

Differences between absolute ppp and relative ppp, Q. Discuss the d...

Q. Discuss the differences between Absolute PPP and Relative PPP. Answer: Absolute Purchasing Power Parity (PPP) states that the exchange rate between two currencies e

FOREX, part of the return on the investment comes from the asset itself and...

part of the return on the investment comes from the asset itself and part from the currency of the foreign currency. agree or disagree?

Absolute advantage by adam smith, which book by adam smith explains the abs...

which book by adam smith explains the absolute advantage ?

Trade, What are the reasons behind the growing importance of services in tr...

What are the reasons behind the growing importance of services in trade ?

Internal economic environment, In the International Medical Center there ar...

In the International Medical Center there are internal influences. The strategic capability of the project consists of competencies and resources. The strengths and weaknesses of p

Factors affecting the demand for foreign currency, Q. What are the factors...

Q. What are the factors affecting the demand for foreign currency? Answer: Three factors that affect the demand for foreign currency are risk, expected return, and liquidity.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd