International trade

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International trade

International business. Cultural difference. Management. Guide market entry. Course International Strategy. Models of Economic Growth and Development. As we study economic development in year 2 IB Economics, we examine different models for economic growth . Growth in GDP is not the only determinant of economic development, which in order to be measured effectively must account for human welfare determinants such as life expectancy, literacy rates, child mortality rates, distribution of income , and so on. However, it has been shown throughout history that economic growth, or the increase in real output and income, correlates directly with improvements in development factors like those above. The reason? Increases in national income usually mean at least some levels of improvement in access to basic necessities for the average citizen in a developing country. Also, higher incomes mean more savings, which means greater access to capital for investment by entrepreneurs.

Of course, the following models can be observed to varying degrees among the world’s developing economies today. Harrod-Domar Growth Model: Rostow's Model [ Biz/ed Virtual Developing Country ] The Virtual Developing Country is a case study of Zambia.

There are a series of field trips available looking at different issues connected with economic development. This trip is the Copper Tour and this page looks at Rostow''s Model- the Stages of Economic Development. Theories Rostow's Model- the Stages of Economic Development Next theory - Models of Demographic Transition >> In 1960, the American Economic Historian, WW Rostow suggested that countries passed through five stages of economic development. Stage 1 Traditional Society The economy is dominated by subsistence activity where output is consumed by producers rather than traded. Stage 2 Transitional Stage (the preconditions for takeoff) Increased specialisation generates surpluses for trading.

Stage 3 Take Off Industrialisation increases, with workers switching from the agricultural sector to the manufacturing sector. Stage 4 Drive to Maturity The economy is diversifying into new areas. Models of Economic Growth. Models of Economic Growth Classical Model of Economic Growth Every nation strives after development.

Economic progress is an essential component, but it is not the only component. Economic development is not purely an economic phenomenon. In an ultimate sense, it must encompass more than the material and financial side of people’s lives. The classical theories of economic development consist of following four schools of thought: 1. This linear-stages approach was largely replaced in the 1970s by two competing economic schools of thought – theories of structural change and international-dependence theories. 2.

Structural-change theory focuses on the mechanism by which under-developed economies transform their domestic economic structures from a heavy emphasis on traditional subsistence agriculture to a more modern, more urbanised, and more industrially diverse manufacturing and service economy. Primary Commodity Prices [ Biz/ed Virtual Developing Country ] The Virtual Developing Country is a case study of Zambia.

There are a series of field trips available looking at different issues connected with economic development. This trip is the Copper Tour and this page looks at the factors affecting the price of primary commodities like copper and why the prices may fluctuate. Theories Price Movements of Primary Commodities Next theory - The Arguments for Privatisation >> Copper is an example of a primary commodity. The demand for the metal still remains high however new technologies such as fibre optics are being discovered that can substitute for copper.

The prices of many primary commodities have shown two noticeable characteristics: They often exhibit a downward trend over time They are prone to fluctuations How does economic theory explain this? Downward trend in their prices? Supply factors An increase in the supply of the commodities due to improvements in the technology e.g. development and use of fertilizers and pesticides. Gommen en zetmeel als alternatief voor gelatine. Course building. IM-Budapest. European Research Workshop in International Trade held jointly with the 1st EFIGE Scientific Workshop and Policy Conference. Conferences: European Research Workshop in International Trade (ERWIT) held jointly with the Fourth EFIGE Scientific Workshop and Policy Conference. External Shocks to the Global Economy - Mind Map.