Chapter 3.3: Free trade liberalism Flashcards Preview

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Flashcards in Chapter 3.3: Free trade liberalism Deck (7)
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1
Q

What is David Ricardo known for?

A

theory of comparative advantage

2
Q

who is know for the theory of comparative advantage?

A

David Ricardo

3
Q

What did 19th century liberals strengthened free trade?

A

Peace through trade,

the belief that free trade would guarantee peaceful relations between states

4
Q

Describe David Ricardo’s comparative advantage

A
  • all nations can benefit from international trade even if no absolute advantage
  • as long as they willing to specialise in the goods they have comparative advantage in, they can improve their welfare
5
Q

Which liberal theorists believed that free trade would promote not only wealth but peace?

A

Richard Cobden and John Bright

6
Q

How does free trade helps in peace and cooperation?

A
  • free exchange of goods promote wealth creation
  • reduce desire in nations to build empires and use military force for economic gain
  • brings out common interest and would take away the reason for pursuing economic nationalism
7
Q

What are the two fundamental objections that free trade helps peace and cooperation as advocated by Richard Cobden?

A

E.H Carr

  • benefits mainly powerful and economically advanced nations
  • ideology of rich and powerful

World War 1

  • despite high degree of economic interdependence and integration
  • resurgence of mercantilism and military expansionism contradicts this