Global Economics Flashcards

Global Economics

Introduction to Trade Activity

• Why do countries trade goods and services (G&S)?
• What is globalization?
• How does globalisation facilitate the spread of ideas, cultures and values?
• What are the benefits of international trade?
• Why do countries impose trade restrictions on imports?
• Why are some currencies favored more than others?
• What is the link between international trade and societal development?

International Trade

International trade is the exchange of goods and services beyond national borders, encompassing imports and exports.

Free trade is international trade without any protection, such as barriers to trade like taxes.

The Benefits of International Trade

1. Lower prices and greater choice for consumers.
2. Ability of producers to benefit from Economies of Scale.
3. Ability of producers to acquire needed resources.
4. More efficient allocation of resources.
5. Increased competition.
6. Source of foreign exchange.
7. Increased interdependence and reduced chance of hostilities among trading partners.
8. Exports can lead to economic growth.

Absolute and Comparative Advantage

Absolute advantage: where one country is able to produce more of a good or service with the same amount of resources, such that the unit cost of production is lower

Comparative advantage: where one country produces a good or service at a lower relative opportunity cost than others.

Comparative Advantage: Sources of Comparative Advantage

1. Differences in factor endowments
   • Access to good farmland
   • Suitable climate for agriculture
   • Beautiful scenery for tourism
   • Supply of mineral/oil deposits
   • Plentiful supply of cheap, unskilled labor
   • Access to forestry or fishing
2. Level of technology available

Understanding Absolute and Comparative Advantage

Understanding the concepts of Absolute and Comparative Advantage
SPECIALIZATION, TRADE, AND THE PPF
Who has the absolute advantage in producing
PRODUCTION POSSIBILITIES FRONTIER
$\text{OBLIVIS MIRABILIS}$
\text{SPECIALIZATION &TRADE}

Why?

*QUANTITY OF SHOES (TONS)
PRODUCTION POSSIBILITIES FRONTIER

What is the opportunity cost for the USA to make
one more additional plane?

What does this mean in terms of comparative
advantage for the USA?
*QUANTITY OF SHOES (TONS)
PRODUCTION POSSIBILITIES FRONTIER
What is the opportunity cost for China to make
one more extra plane?

Globalisation

1. How has globalisation transformed the way goods and services are produced and traded across borders?
2. What is the role of FOREX in globalization?
3. In what ways does globalisation facilitate the spread of ideas, cultures, and values?
4. What role does technology play in promoting globalisation?

Globalisation

Crash course - 10 facts, GO!
POVERTY & GLOBALIZATION
$\text{HOLI OBLIVISCI}$
$\text{ASILIS ESSE}$

Globalisation and Shipping

1. Take a look at this link - find the following locations:
   • Singapore
   • Suez Canal
   • Panama Canal
   • Gibraltar
     Why are these some of the busiest trading routes?
2. Find the following vessels:
   • Emma Maersk
   • Ever Apex
   • Ever Given (this ship is a celebrity. Why?)
     Look at their routes and route forecasts. Where are they from and what is their final destination?

How has trade been impacted by the development of Transportation networks?

1. How has the development of transportation (particularly shipping) impacted globalization?
2. What are the benefits and drawbacks of containerization?
3. What impact has the development of shipping ports and routes had on countries economic growth and development?
4. What are the drawbacks of increased transportation of goods around the world?
5. Discuss the benefits and drawbacks of transporting goods by air vs the sea.

How has globalization been impacted by the development of Technology and communication?

1. How has the development of technology impacted globalization and trade?
2. What are the benefits and drawbacks of increased technological advancements?
3. Explain how technology such as the internet or mobile phones has increased the pace of globalization.
4. Do you think the money spent on the space industry is worth it?
5. What impact do you think globalization has had on technology?

Protectionism

1. Describe methods of protectionism
2. Discuss the reasons for and consequences of protectionism

Free Trade

• Under free trade citizens of a country can import G/S’s at a price of $P_w$, which is lower than what domestic price at P.
• Domestic output is at $Q<em>1$ and imports are $Q</em>2Q<em>1$ at the price of $P</em>w$.
• Governments will implement protectionist policies to reduce the amount of imports.

Protectionism

International specialisation and free trade offer numerous benefits in terms of optimal allocation of resources on a world scale.

However, most countries still do not pursue a policy of perfectly free trade due to the consequences associated with it. Most countries engage in some form of restricted trade.

Protectionism

This video considers why countries restrict trade. As you watch, write down the arguments provided for restricting trade.

Methods of Protectionism

1. Tariffs
2. Subsidies to domestic producers
3. Quotas
4. Trade embargoes
5. Rules and regulations
6. Nationalistic Campaigns

Tariffs (customs duties)

Definition: Is a tax imposed on imported G/S.

• Tariffs work best at restricting imports when demand for the import is price elastic (there are domestically produced substitutes).
• Tariffs are a way the government can earn tax revenue.

Tariffs (customs duties)

• The tariff is charged on imports and raises the price of imported G/S’s from $P<em>1$ to $P</em>2$, so shifts the world supply curve upwards from $S<em>w$ to $S</em>w+ \text{Tariff}$.
• Domestic suppliers are now willing to supply more at $Q_4$.
• As prices increases to $P<em>2$, consumers decrease demand to $Q</em>3$.
• This means imports decrease from $Q<em>1Q</em>2$ to $Q<em>4Q</em>3$.

Impact of Tariffs

• More of the good will be produced by less efficient domestic firms. Therefore, their revenue increases.
• This creates more employment in these industries. However, this could negatively impact jobs in downstream industries as COP increase.
• Less of the good will be supplied by foreign firms.
• The government will collect import tax revenue.
• Domestic consumers pay higher prices and have less choice.

Tariffs

Choose one of the following articles and answer the questions below: Tariff’s on Airbus or Peaches.

1. Using information from the article draw a diagram to show the impact of the tariff of your chosen article.
2. Using the diagram and information from the article, explain the impact of the tariffs on Consumers, Domestic producers, foreign producers, Government and workers.

Domestic Subsidies

Definition: A grant/payment made by the gov’t to a domestic firm per unit of output that they produce.

• This lowers costs of production for domestic producers making them more price competitive relative to foreign firms, so the domestic supply curve shifts down/right allowing domestic firms to increase supply.

Domestic Subsidies

• Before the subsidy, domestic output was at $Q<em>1$ and imports were $Q</em>1Q<em>2$ at the price of $P</em>w$.
• As the subsidy lowers COP for domestic firms, they increase supply from $S<em>d$ to $S</em>{ds}$ and now supply $Q_3$ amount of goods.
• This means that imports decrease to $Q<em>3Q</em>2$.
• Remember that price does not change for consumers, so demand remains at $Q_2$.

Impact of Domestic Subsidies

• More of the good will be produced by less efficient domestic firms (0Q1 to 0Q3), and their revenues increases from area 0$P<em>w$X$Q</em>1$ to 0$P<em>w+\text{sub}$ $Q</em>3$.
• Less of the good will be supplied foreign firms ($Q<em>1Q</em>2$ to $Q<em>3Q</em>2$) & revenue decreases from $Q<em>1XYQ</em>2$ to $Q<em>3ZYQ</em>2$.
• There will be an opportunity cost for the gov’t; tax revenues used to pay for the subsidy are no longer available to support other gov’t programs. Spending is area $P<em>wZWP</em>w+\text{sub}$
• There will be more jobs available domestically.

Subsidy

Read the following article and answer the questions below: Subsidy to protect Japanese Rice farmers.

1. Using information from the article draw a diagram to show the impact of the subsidy on the rice market in Japan.
2. Using the diagram and information from the article, explain the impact of the subsidy on Consumers, Domestic producers, foreign producers, Government and workers. Try to use the article to support the evaluation.

Quotas

Definition: This is a physical limit imposed on the quantity of a goods that can be imported into a country.

• Before the quota is introduced $Q<em>2$ amounts of goods are produced domestically and $Q</em>2Q_1$ amount of goods are imported.
• When the Gov places a quota they limited the number of imports to $Q<em>2Q</em>3$.

Quotas cont…

• Due to there being a limit on imports there is an excess demand or shortage of goods in the market of $Q<em>3Q</em>1$ at the price of $P_1$.
• This results in upward pressure on the price from $P<em>1$ to $P</em>2$. As price increases Qd decreases to $Q_4$.
• As prices rise it is more profitable for domestic firms to produce, so they now also produce $Q<em>3Q</em>4$ amount of goods.
• Remember, no more goods can be imported due to the quota.
• Domestic producers now supply 0$Q<em>2 + Q</em>3Q<em>4$ amount of goods and imports are $Q</em>2Q_3$.

Impact of Quotas

• Domestic consumers pay a higher price for the good and have less choice.
• More of the good is produced by domestic firms, allowing these firms to make higher revenues.
• Foreign producers are able to export less of their good into the country.

Quota

Read the following article and answer the questions below: Quota of movies in China.

1. Using information from the article draw a diagram to show the impact of the quota on the film industry in China.
2. Using the diagram and information from the article, explain the impact of the quota on Consumers, Domestic producers, foreign producers, Government and workers.

Trade embargoes

A trade embargo is an extreme form of quota It enforces a legal ban on trade in a particular product from a given country. It is often imposed as some form of political punishment - eg the US embargo on g/s from Cuba.

Rules and regulations

Excessive regulations increase ‘red tape’ (bureaucracy) and make it more time consuming, challenging, and costly to import goods. This disincentives foreign firms from trying to export their goods into the country in question. It thereby serves as a form of protectionism for that country.

Nationalistic Campaigns

These are gov’t sponsored campaigns designed to encourage people to buy domestically produced goods rather than foreign substitutes. These can work in the short run, but can be costly to maintain.

Nationalistic Campaigns

Read the following article on “Make in India” campaign launched by the Indian Government and answer the following question:

1. Discuss the effectiveness of the 'make in India' campaign on the manufacturing sector in India and how will this reduce imports.

Arguments in Favour of Protectionism

1. Protecting domestic employment.
2. Protecting infant (sunrise) industries .
3. Protecting declining (sunset) industries.
4. Correct a balance of payments deficit that exists when a country is spending more on imports than it is earning in export revenue.
5. Protecting strategic industries (like agriculture or weapons production).

Arguments in Favour of Protectionism (cont.)

6. Protecting industries from unfair foreign competition (dumping).
7. Ensuring that goods entering the country meet health and safety standards.
8. To raise revenues for a government through the use of tariffs.

Arguments Against Protectionism

1. World output and standards of living can decline as countries are unable to specialise in areas where they have absolute and comparative advantage.
2. Global resources will not be put to best use without specialisation.
3. Domestic firms may become inefficient as they are shielded from foreign competition.
4. Firms cannot fully exploit economies of scale.

Arguments Against Protectionism (cont.)

5. Trade barriers increase the cost of trading. For example, a tariff may mean that Singaporean firms and consumers have to pay more for imported raw materials of consumer goods.
6. Other countries may retaliate.
7. Consumers have a smaller range of goods to choose from and these goods may not be of the highest possible quality due to a lack of competition from abroad.

Case Study Questions: Protectionism and Free Trade

Read the case study and answer the questions that follow.

Economic Integration

Definition: Trading blocs are agreements between countries intended to free up trade. This can encourage trade amongst member countries, but member countries can also choose to collectively use protectionist policies against external countries.

6 stages of economic integration:

• Preferential trade area
• Free trade area
• Customs union
• Common markets
• Economic & monetary union
• Complete economic integration

Economic Integration

Preferential trade area:

• is an agreement between two or more countries to lower trade barriers (not fully eliminate) between each other on particular g/s.
• This allows members to have easier access to markets of other members for selectected products or materials.
• These agreements can either be Bilateral, Multilateral or Regional trade agreements.
• For example; between the EU and the African, Caribbean and Pacific Group of States (ACP). This is an agreement between the EU and 78 countries of the ACP.

Economic Integration

Free trade area:

-An FTA is an agreement between countries to slowly eliminate trade barriers and ultimately trade freely among themselves. They can still pursue their own trade policies towards other non-member countries.

-For example; The TPP & South Asian Free Trade Agreement (ASEAN)

Economic Integration

Customs Unions:

• Countries that have formed a customs union proceed further to eliminate any trade barriers and trade freely between members. However, now member countries have to adopt common policies towards all non-member countries.
• All member countries act as a group in all trade negotiations and agreements with non-members.
• Examples include: Central European Free Trade Agreement (CEFTA), Southern African Customs Union (SACU), East African Community (EAC).

Economic Integration

Common Markets:

• Is a even higher degree of economic integration, in which member countries trade freely with each other, they have common policies towards non-members and in addition they agree to eliminate all restrictions on the movement of FOP’s.
• The FOP’s of importance such as labour and capital can cross all borders and move, travel and find employment freely within all member countries.
• Examples include: European Union & Caribbean Community (CARICOM).

Economic Integration

Economic & Monetary union:

• Occurs when the member countries of a common market adopt a common currency and common central bank responsible for monetary policy. They still have control over their fiscal policy.
• Example: EU.

Economic Integration

Complete Economic Integration:

• This is the final stage of economic integration, at which point member countries involved would have no control of economic policy. Any decisions on monetary and fiscal policies are now fully integrated.

Economic Integration

In groups of 4, you will jigsaw the articles on this document (one person in the group needs to make a copy).
Each of you will read an article. Then you will tell the group about your article and as you do another member will capture your points in the table. This will rotate so that everyone speaks about an article and also types about a different article.

Benefits of Economic Integration

Trade Creation:

• When a country joins the EU for example, trade barriers, such a tariffs are removed.
• The price of imports decrease from $P<em>2$ to $P</em>1$, so consumers now pay a lower price for G/S’s and have more choice, therefore demand more at $Q_4$.
• Imports increase from $Q<em>2Q</em>3$ to $Q<em>1Q</em>4$.
• Domestic output decreases from $Q<em>2$ to $Q</em>1$.
• $Q<em>1Q</em>2$ amount of goods is now produced by more efficient foreign producers, which improves world efficiency.

Exam Practice

Discuss whether or not a reduction in trade protection by the EU would benefit Morocco (10).

World Trade Organisation

World Trade Organization

Objectives Describe the objectives and functions of the World Trade Organization (WTO).
Explain factors affecting the effectiveness of the WTO.

World Trade Organization (WTO)

What is the WTO?

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.

World Trade Organization (WTO)

History of the WTO

The WTO was born out of negotiations in 1948, and everything the WTO does is the result of negotiations. The bulk of the WTO’s current work comes from the 1986–94 negotiations called the Uruguay Round and earlier negotiations under the General Agreement on Tariffs and Trade (GATT). The WTO is currently the host to new negotiations, under the ‘Doha Development Agenda’ launched in 2001.

World Trade Organization (WTO)

Who is the WTO?

There are currently 21 observer nations and 164 member nations of the World Trade Organisation. This means that 95% of countries in the world today are either member nations or observers of the WTO. There are 650 paid employees of the WTO.

World Trade Organization (WTO)

Functions of the WTO

• Administering WTO trade agreements
• Forum for trade negotiations
• Handling trade disputes
• Monitoring national trade policies
• Technical assistance and training for developing countries
• Cooperation with other international organizations

World Trade Organization (WTO)

Objectives of the WTO

1. Enhancing the standard of living and income, promoting full employment, expanding
   production, trade and optimum utilization of world’s resources.
2. Introducing sustainable development, a concept which envisages that development and
   environment can go together.
3. Taking positive steps to ensure that developing countries, especially the least developed
   ones, secure a better share in world trade.

World Trade Organization (WTO)

Potential Problems with the WTO… Read this article, and this article watch this short video and evaluate whether the WTO is beneficial for developing nations or the environment.

Exchange Rates

Learning Objectives

1. Define a foreign exchange rate.
2. Distinguish between a fixed and a floating exchange rate.
3. Explain how a foreign exchange rate is determined in a foreign exchange market.
4. Analyse the causes and consequences of foreign exchange fluctuations.
5. Discuss the advantages and disadvantages of floating and fixed exchange rate markets.

Exchange Rates

Key Terms:

An exchange rate is the value, or price of one nation’s currency expressed in terms of another currency; in other words, it is the rate at which one currency can be traded for another on the foreign exchange market (FOREX).

A reserve currency is a foreign currency that is held in significant quantities by central banks as part of their foreign exchange reserves. The reserve currency can be used in international transactions, international investments and all aspects of the global economy.

Exchange Rates

An exchange rate system establishes the way in which the exchange rate is determined - the value of the domestic currency with respect to other currencies. Choosing the currency system is a crucial policy decision by any government as it has significant impacts on the flexibility of the exchange rate.

Exchange Rates

Exchange rates (unless fixed) will fluctuate as a result of changes in demand and supply of, and for a currency. There are daily fluctuations, and fluctuations over time.

Floating Exchange Rates

The rate of exchange is determined by supply of, and demand for a currency on the foreign exchange market (FOREX). The government does not intervene to influence the value of a currency. If there is an increase in demand or decrease in supply of a currency, it will appreciate, and vice versa, it will depreciate.

Floating Exchange Rates

If one currency loses value relative to another (its exchange rate decreases), the currency has depreciated. If one currency gains value relative to another (its exchange rate increases), the currency has appreciated.

Floating Exchange Rates

How do currency values rise and fall? Why would a country want to manipulate the value of its own currency? Watch this video to find out the answers to these questions.

Floating Exchange Rates

Demand for $ increases: $ appreciates

€ \text{ per } $ = \text{price of $ in terms of €}

Supply of € increases: € depreciates

$ \text{ per } € = \text{price of € in terms of $}

Floating Exchange Rates

Reasons for EU citizens demanding the US$ on the FOREX:

• An increase in US interest rates making it more attractive to save in the US
• An increase in demand for US exports due to:
  • More tourist travelling to the US
  • EU consumers prefer US G/S.
  • EU incomes increase
  • Inflation rates in the US are lower than EU.
• Investment opportunities in the US improve.
• Speculation whether the US$ will appreciate in the future.

Floating Exchange Rates

Reasons for the US supplying the US$ in the FOREX:

• Interest rates are higher in the EU than US.
• An increase in demand for EU exports due to:
  • More US tourist travelling to the EU.
  • US consumers import more EU G/S.
  • US Incomes increase
  • Inflation rates in the EU are lower than the US
• Investment opportunities in the EU improve.
• Speculation whether the Euro will appreciate in the future.

Changes in the Exchange Rates

What would happen to the SGD exchange rate if…..

1. Demand for Singaporean exports rose.
2. Demand for foreign imports from Singaporeans rises.
3. The inflation rate in Singapore rises relative to other nations.
4. SG Interests rates rise relative to other nations.
5. Speculators think the Singapore dollar will rise in the future.
6. Foreign Direct Investment (FDI) into Singapore increases.

Fixed Exchange Rate

This is a system where the value of the currency is fixed, or pegged to the value of another currency, or to the average value of a group of currencies. The government must intervene to maintain the value at the pegged rate.

Fixed Exchange Rate

The central bank uses exchange rate policy (buying/selling of currencies that it keeps as reserves) to maintain the currency value at the pegged rate.

EG. UAE Dirham pegged to US Dollar (Dhs3.675 = $1) EG. Hong Kong Dollar to US Dollar (HK$7.85 = $1)

Fixed Exchange Rate

This is when the pegged rate is reduced. The value of any savings held in this currency is instantly reduced and imports become more expensive, but exports become cheaper

This is when the government adjusts the pegged rate so that the currency is revalued upward. This is good for savers, lenders, and importers, but bad for borrowers and exporters.

Fixed Exchange Rate - Maintaining a Fixed ER

Situation 1: UAE citizens start to import for G/S’s.

• If the supply of the UAE Dirham increases (S to S1) due to people buying more imports the value of the ER should decrease.
• But the gov has to intervene to maintain the ER value. They do this by increasing the demand for the Dirham from D to D1.
• The gov uses foreign reserves to buy up the excess supply of the Dirham on the ER market or increase interest rates to encourage people to save in UAE banks

Fixed Exchange Rate - Maintaining a Fixed ER

Situation 1: UAE has an increase in tourists for the F1

• If the demand for the Dirham increases (D to D1) due to the influx of tourist for the F1, the value of the Dirham should rise.
• However, the UAE gov needs to either sell its domestic currency and buy US$ to increase the supply from S to S1 in order to maintain the value of the Dirham against the US$ OR decrease interest rates so people sell the UAE Dirham on the forex.

Fixed Exchange Rate

To decrease the value of its currency, the gov’t can buy foreign currencies in the FX market using its own currency.

To increase the value of its currency, the gov’t can buy its own currency in the FX market using its reserves of foreign currencies.

Fixed Vs Floating Exchange Rates

Fixed Vs Floating Exchange Rates

Managed Exchange Rate

Definition: ER’s are allowed to float to their market levels over long periods of time. However, central banks intervene to stabilise them over the short term.

Managed Exchange Rate

Explanation:

The currency is allowed to float freely between an upper and lower band.
When the currency value reaches the upper and lower bands the central banks intervenes.
They will either buy/sell official reserves or change interest rates.
This helps reduce uncertainty, encourage investment & economic activity & control inflationary pressure.

High vs Low exchange rates

Task: Watch the following video on why a strong US$ is a double-edged sword and answer the following questions:

1. What makes the value of the US$ increase during times of economic growth?
2. Why does the value of the US$ increase when there are fears of downturns in the global economy?
3. What happens to the value of other currencies when the US$ increases in value?
4. Why can a strong US$ cause inflation in other economies?
5. What impact does a strong US$ have on the price of imports into the US? And how could this help slow inflation?
6. What impact does a strong US$ have on US exports and company profits?

High vs Low exchange rates

High vs Low exchange rates

Practice Question

1. Discuss whether or not an appreciation of a country’s domestic currency will have negative effects on its economy. (10 marks)
2. Discuss whether or not a depreciation of a country’s domestic currency will have negative effects on its economy. (10 marks)

Mark Scheme

Describe
A reasoned discussion which accurately examines both sides of the economic argument, making use of economic information and clear and logical analysis to evaluate economic issues and situations.
One side of the argument may have more depth than the other, but overall both sided of the argument are considered and developed. There is thoughtful evaluation of economic concepts, terminology, information and/or data appropriate to the question. The discussion may also point out the possible uncertainties of alternative decisions and outcomes.

Why appreciation will have a negative impact:
Price of exports will be higher - decrease export revenue.
Price of imports will be lower - increase import spending.
Decrease demand for domestic products - decrease demand for labour.
Decrease current account surplus/ increase current account deficit.
Lower economic growth.

Why appreciation will not have a negative impact:
Price of imports cheaper - increase affordability of imports - increase standards of living.
Price of imported raw materials / machinery lower - lower cost of production lower final price.
PED for exports and imports might be inelastic.
May encourage foreign investment as there may be increased confidence in the country's future economic prospects

MCQ Quiz

Use the video here to review key concepts from the unit on currencies. Pause the video before the answers are explained and attempt to explain your answer to your table mates.

Reserve Currency

A reserve currency is a foreign currency that is held in significant quantities by central banks as part of their foreign exchange reserves. The reserve currency can be used in international transactions, international investments and all aspects of the global economy.

1. Using the following website and the video, explain how reserve currencies have evolved over the last 120 years.
2. Explain what you think the advantages and disadvantages of have a global currency such as the US$.

Extension Activity: Venezuela’s decline

Watch the video on Venezuela’s economic decline and answer the following questions:

1. How do oil prices affect Venezuela's currency?
2. What happens to Venezuela's exports when the Bolivar appreciates?
3. What happens to imports when the Bolivar appreciates?
4. Why did people in Venezuela take out loans to buy things like TVs and plastic surgery?
5. Why did the government impose price controls in Venezuela?
6. What was the result of the price controls in Venezuela?
7. Why did the Venezuelan government offer a special exchange rate for certain goods?
8. What was the problem with the government's official exchange rate in Venezuela?
9. According to the government, what is at the root of Venezuela's problems?
10. What is the argument for why Venezuela is plagued by problems?

Exchange Rate Case study

Turkish Economy: Exchange Rates Case Study

International Trade as a pathway to economic development and reducing inequality

Economic Development:

A broad measure of economic well-being that takes into account factors beyond monetary income:

• Reduction of poverty and income inequality
• Improvement of general living standards:
  • Long life
  • General health
  • Education achievement and opportunities
  • Measures of employment
  • Income inequality

Economic Inequality: Is the unequal distribution of income and opportunity between different groups in society.

International Barriers to economic development

International Barriers to Economic Development:

1. Geographical Barriers.
2. Protectionism by developed countries.
3. Over-specialization.
4. Technical Barriers (regulations & standards)

Policies to promote international trade to improve economic development & reduce inequalities

1. Economic Diversification
2. Foreign Direct Investment (FDI)
3. Import Substitution
4. Export Promotion (unit 4)
5. Trade Liberalisation
6. Economic Integration

International Trade Policies Instructions and Task

Economic Diversification