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5 Cards in this Set

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Agglomeration economies
The second wave of globalization 1945-1980 introduced a new kind of trade: rich country specialization in manufacturing niches that gained productivity through agglomeration economies. As in Japanese auto firms. Those left out a region cannot be competitive because not enough firms have chosen to locate there.
Globalization
Globalization is the process of greater interdependence among countries an their citizens. It consists of increased integration of product and resource markets across nations via trade, immigration and foreign investment - that is via international flow of goods and services, of people, and of investment such as equipment factories stocks and bonds. Also noneconomic elements.
Openness
<equation> Exports + Imports/ GDP </equation> Small countries tend to have higher measures of openness. In the US, high in the 1800s, then lower, then higher after WWII
Economic interdependence
ll aspects of a nations economy - its industries, service sectors, levels of income and employment and living standard are linked ot the economies of its trading partners. Exports and imports as a share of national output have risen for most industrial nationjs, while foreign investment and international lending have expanded.
Economic interdependence is complex and its effects uneven.
Law of comparative advantage
The citizens of each nation can gain by spending more of their time and resources doing those things where they have a relative advantage. When trading partners use more of their time and resoruces producing things they do best, they are able to produce a larger joint output, which provides the source for mutual gain.