New theories of international trade, globalization Institutionalists, Thorstein Veblen, John Rogers Commons, Wesley Clair Mitchell, Adam Smith, Ricardo, Industrial Revolution, Economies, politics, business, flows international trade
Through this quotation from Joseph Stigltiz, co-prize winner of the 2001 Nobel Prize in Economics for his work on asymmetric information, we note the interconnection between countries that globalization brings about: with its advantages but also its disadvantages. A questioning of this process arises, raising a question about its true nature.
Globalization is a polysemic term that refers to notions more or less related to the expansion of professional sectors of activity from a national to an international sector. The OECD defines globalization as a dynamic and multidimensional process of economic integration that allows national resources to become increasingly mobile internationally as national economies become more interdependent'.
[...] Adam Smith uses this framework to explain the origin of the Industrial Revolution, for example. He says that England is the country of recognition of fundamental and political and economic rights, implying that economic liberalism (which recognizes the right of individuals to trade freely) goes hand in hand with political liberalism². Opening up to trade implies that the country should specialize in productions where it is the most efficient. This specialization will lead to an overall increase in production. According to Ricardo in 1817, even in cases of absolute productive disadvantage (e.g., because of technological backwardness), a country has an interest in specializing in production where it has a relative advantage. [...]
[...] In reality, this term is not very rigorous in scientific terms because there has been no ‘revolution' - we should rather speak of progressive industrialization. But what is certain is that we are witnessing a change in the economic model and a new model of globalization because it is a new model of capitalism. Before the Industrial Revolution, elites captured wealth, there were no incentives to create wealth. With these changes in operation, the European countries thus embarked on industrialization, with North America a little later. Companies are now looking for low-cost raw materials, markets, outlets and prospects for growth and expansion. [...]
[...] p ▪ Mingst, Karen A. (2015). Essentials of international relations. W. W. Norton & Company 1 Kapp, K. William (2011). The Foundations of Institutional Economics, Routledge Phillipson, Nicholas (2010). Adam Smith: An Enlightened Life, Yale University Press Blanqui A., Histoire de l'économie politique en Europe depuis les anciens jusqu'à nos jours, t. [...]
[...] Based on the differences in the endowment in the factors of production, the HO model states that there is a partial specialization of each country in the relatively most intensive good in the factor of which this country is relatively best endowed. Besides, there is an equalization of the relative prices of goods between countries. Hence, Heckscher and Ohlin say that by specializing and trading, countries globally increase their earnings. Stolper and Samuelson add that within a country there are differences in factor earnings. If a country specializes in ‘labor-intensive' products, workers' wages are increased and the profits of capital holders decrease and vice versa if the country specializes in ‘capital-intensive' products. [...]
[...] In the second part, we will the new trade theories and the reasons for the intensification of exchanges and the actors involved in this process. The beginnings of international trade and the internationalization of production A. The early theorists of globalization Institutionalists The institutionalism is a current of economic thought that emerged in the United States in the early 20th century, driven primarily by the writings of Thorstein Veblen, John Rogers Commons, and Wesley Clair Mitchell. It focuses on understanding the role of institutions in shaping economic behaviour1. [...]
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